Collection Agency question

[buster1966]

I need some dire help here. I lost my job and do not have the money to pay a lawyer right now.

I purchased a lawn mower on a private label credit card about a year ago.

Since then I lost my house in foreclosure and had to quickly move. Taking a house an hours drive away in a different state. It was inhabitable, we had not choice but to sell everything we could to get the house livable and move. Which meant chosing what to pay and what not to pay which was credit cards.

Last month I received a call from the Circuit Clerk's office in the state we used to live in, and a collection company had filed a lawsuit and some sort of document to allow the sheriff to search for secured property (the mower) at the property. I told her that I had moved to another state and the house was no longer mine. She asked where they could serve the paperwork and that I had a court date the following week. I told her I didn't know because I didnt' live in that state anymore. She then told me that I might want to call the collection agency and talk to them about this. They could stop the court hearing by contacting the clerks office.

Not sure what to do I called them, and they claimed that by me selling the mower that I committed fraud and they would file a stolen merchandise complaint with the sheriffs department in that county and if the person that purchased it had it took it in for service it would be seized and them charged with posession of stolen merchandise. I at that point didn't know what to say,I asked what would it take to settle it, they came up with a figure of $4500 and needed it right then, which I didnt' have. I was able to pay 1/2 of it (which was my months bill pay money including rent) and they said they could take the other 1/2 in a month which is the end of this month and I will not have it to pay. I am trying to find employment in even another state and not hving any luck.

I desparately need some advice on this. It is a credit card account, I had even spoke with the local dealer where I bought it at about selling it, they never said anything about it being secured before or after initially purchasing it.

Can this collection company do this? They have my checking account info for the rest of the amount so I do not know what to do.

thanks for any help.

 

[tpajet]

They are getting out of bounds here.

Check out these two links:

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm

www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf

When you say it's a "Private label" credit card, what exactly do you mean? Was this a store credit card, or a regular Mastercard/Visa, etc?

Either way, there is no fraud involved if you sell the item. You need to contact the state attorney general's office, and I would do it in both the state you live in now, and where you lived in when you bought this. Let them both know that you have contacted the other state's AG, and see how they want you to proceed.

 

[buster1966]

Thanks for the reply.



It was a branded store card, called YardCard issued by a bank in New Jersey, much like a Circuit City, JC Penney, etc private label card that is a non-mastercard/visa. I have searched the internet and I am not the only one this is being done to.

I also don't understand why the circuit clerk was willing to serve papers across state lines.

My main concern was the person that purchased it did no wrong.

Another thing that I had forgot to say, this collections company called a friend of mine's cell number (who was a reference on the app, but NOT on the account) and told him why they were calling and they were 'sending the sheriff out' I thought this was against the law also?

 

[tpajet]

The card should still be an unsecured card, the same as a Vias/MC. In other words, unless there is some stipulation the cardholder agreement, they cannot threaten to report the items stolen.

As for your friend, if the friend was not an actual account holder on this, then they are in violation of the law.

The reason the clerk of the court would be wiling to serve the papers would be more to your benefit. There's a possibility that you could have been considered a failure to appear which means a default judgment against you and possibly an arrest warrant.

I know this is in the past, but for others reading, and your possible future benefit, don't let them bully you into anything like this. Tell them you want them to send you confirmation of the debt in the mail. Then proceed from there. I would NEVER have given them your account info. Given the fact they are obviously a shady outfit in the first place, this could lead to future problems.

You need to consider closing that account before they can touch anything further, however don't do this if you already have a written agreement for them to debit the account as it could be the same as writing a check then closing the account before the check is deposited. But I would certainly close this account after this is done.

In the mean time if you have made the agreement to pay the other half, then do so. It will save a bunch of headache and mess, and in the mean time call the sate AG and tackle things from there. Remember that even though they are crossing the line, the debt is legit. So you might get them off your back, but another will come along with that debt later.