Bad Credit Agency

Can they do this? I am being sued for credit card FCNB???

I recieved a notice today for small claims court for a old credit card from like 2001 or 2002. It came from a collection agency for First Consumers National Bank. I never paid this because everything I find they went out of business and I didnt agree with all the fees they were adding to my account so I just never paid it. Now they are taking me to court for almost 1000. and the credit limit on the card was like 300. Can they do this? I dont agree with all the fees and charges and if the credit card from what I find states they are out of business how do I prove I dont owe all this money??? I actually recieved the court papers today. I am located in Wisconsin.

Public Comments

1. As far as I know, credit cards are unsecured, so I don't understand how they can sue you or how they can have any merit doing so.
2. The Bank may be gone but someone bought the debt. They paid a lot less than the debt was actually for but they are gambling that they can wring the money (at least some money)out of you. They are relentless and will keep adding fees until you owe more than the National Debt. I would talk to a lawyer, he/she might be able to help you cut a deal. Don't let this slide,(unless you want to move to Oman for a few years)
3. The collection agency has bought your debt for around 2c in the $ dollar. Any money they get from you will be profit. Do not pay it. Seek legal advise. The debt collection agency specialise in gathering up old debts and trying to make money out of them.Most debts that old are "out of statute. ie Have run out of time. Do not give this collection agency any information about yourself until you seek legal advise. See more information on http://www.debt-support-center.com
4. COLLECTION AGENCIES CANNOT SUE YOU. Only your original debtor can sue you and that would be First Consumers National Bank. Not a collection agency for them. What has happened is that a collection agency has bought your debt from FCNB for pennies on the dollar. Now they are trying to get you for the full amount. Do not acknowlege this debt. Do not agree with any payment terms. Do not even talk to them....you don't have to. Hang onto that letter because they are in violation of Fair Debt Collection Practices Act 15 U.S.C. section 1692c(c). Look it up because this collection agency is a THIRD PARTY collector. Also, check the statue of limitations on credit card debt in your state. Chances are that if this debt was from 2001, you might not even EVER have to pay it back because the statue of limitations has expired. Even if they sue you, you have a legal defense right there. Whatever you do, do not send them a payment or even say the debt is yours.
5. Did you actually get a notice from the court or just a letter from the collection agency threatening to take you to court? If it was from the court you need to find out your state's SOL law for credit cards. If it is out of SOL that is your defense. If it's not out of SOL then did the collection agency give you 30 days after their first contact in writing to you to agree or disagree with the fact that you owed them money? You need to pull your credit reports and see if the card is still listed and check the exact date of when you were last current on the card. Collection agencies cannot re-age accounts just because they purchase them. The collection agency must also prove this was your account and produce some sort of signed contract between you and the credit card company. Either way the collection agency must have given you 30 days from first contact to dispute the account and must validate the account. I doubt they can validate if FCNB is out of business.
6. First, everything about this question varies by state. I am in Indiana, so that's my basis. The statute of limitations on contracts is six to ten years, again, depending on the state. Collection agencies CAN sue you. It doesn't have to be the original creditor. Some collection agencies are hired by the original creditor for a percentage of the money they collect. Some purchase debt for about 25 to 35 cents on the dollar. Not 2 cents. Most importantly, show up at your Notice of Claim Hearing. If you don't show up to dispute the debt, you lose and the company will take a Default Judgment and you'll have to pay. Probably through a Garnishment Order. It is the Plaintiff's burden to prove that you do owe the money. Ask for any information they have. If the debt is that old, its unlikely they'll have anything to show a judge. We bet on people being too lazy to show up to court.