Being sued by a collection agency

[bml619]

I just recieved in the mail a letter from the magistrate that a collection agency is suing me for a debt i accrued over 3 years ago. I understand that i do have to pay it. But everytime I would call the collection agency they would always want all the money up front or atleast half upfront. And I did not have 3000 dollars to my name or even the 1500. They wouldnt take any other way. Within a year the 3000 dollar debt now jumped to 5400 dollars. For 1...How could it have jumped that high within only a year. That is almost like 100% interest if thats what they are charging. Also, what should I do about the court date. Its a month away. I do not own a car or house. I dont own anything. I am not married. I only have a part time job that i make maybe 200 every 2 weeks, so would garnishing my wages really matter. I just need advice on how to proceed with this.

 

[Michael Wechsler]

1) You have no leverage. They have a right to go to court and sue you for all the money due under the agreement, which will likely include damages.

2) I'm confident that this company will negotiate the amount down as almost all of them do. But unless you are willing to pay that long overdue amount completely, or reasonably close, they won't budge. What good is it for them to get a few bucks from someone who hasn't paid in a long time and wait for judgment? They won't - they will get their judgment and then try to garnish your wages. Your best beg negotiating is getting as much money together as you can and see what kind of lump sum payment may work in full (and get that all in writing.) Best of luck.

 

[mightymoose]

How long has it been since you made a payment on the account? I believe the statue of limitations in PA is going to be 4 years for this. I know you said 3 years, but if it is anywhere near approaching 4 you could argue the statute of limitations and avoid a judgment.
You are still obligated to pay, but you might find a way to prevent wage garnishment. Even if they do succeed, they can't take what you don't have.

 

[stop3rdpartycol]

I just recieved in the mail a letter from the magistrate that a collection agency is suing me for a debt i accrued over 3 years ago. I understand that i do have to pay it. But everytime I would call the collection agency they would always want all the money up front or atleast half upfront. And I did not have 3000 dollars to my name or even the 1500. They wouldnt take any other way. Within a year the 3000 dollar debt now jumped to 5400 dollars. For 1...How could it have jumped that high within only a year. That is almost like 100% interest if thats what they are charging. Also, what should I do about the court date. Its a month away. I do not own a car or house. I dont own anything. I am not married. I only have a part time job that i make maybe 200 every 2 weeks, so would garnishing my wages really matter. I just need advice on how to proceed with this.

YOU NEED TO ANSWER THE SUIT, Indicating on your answer that you have "NO CONTRACT" with the entity the collection agency
(the Law firm" is representing..) I have no idea who they are or what this about!!
Chances are they "Bought" the right to collect the debt, but have no PROOFS to prove they have legal title to it now!!

WE need a little more info as to WHO The collection agency is, who they are claiming to represent, and the name of the Law Firm envolved.

Also a "Letter' From a magistrate???
Is this a LAW SUIT Filed??
Or a Letter???
You have to be much clearer in your stating of the question..