What to do with a credit collection agency summon?
I decided to go on ahead and fight back on my summon. Now the collection agency is calling me everyday day and night non-stop. I have a debt settlement agency and said they will be the one in contact with my creditors. I decided to go on debt settlement. So please I need your professional advises on this. Thanks a lot. I just want to get rid of all my credit cards.
Public Comments
- just pay them on settlement. if you get a court judge that is not favorable to you - ask you to pay, then that record will stay in your credit report as a public record.
- Answer the phone and give them the debt settlement agency's number. DO NOT give them any other information as they will try. Advise them not to call your house again. As for calling all day they program those computers to do that. You have to either just not answer the phone or check caller id first. Or take the phone off the hook. This is a ploy that works for them. If they call you day and night many people will eventually send them their last penny so they will go away. don't fall for it.
- Debt Settlement programs are one of the worst things you can do for your credit. The Debt "Settlement" program had you stop paying your credit cards. This causes you to become delinquent with the creditor. Once this happens they are supposed to negotiate with the creditor. Here is the problem there is NO requirement that the credit card company negotiate with the Settlement company. In fact less and less credit card companies are settling, and going straight to filing a suit. Which of course they can because you are no longer paying them. If you are still in the Statute of Limitations(the period a creditor can prevail in a suit) you don't really have anything to "fight"...Sorry. In court you will have little to no sympathy from the judge because you are using the Debt Settlement company. But it is still to your advantage to show up. Do not expect the Settlement company to help you at all. What you need to do is immediately stop paying the Settlement company. If you signed a contract make sure you can get out of it without additional penalties from that company. Then look at getting into a Debt Management Program(DMP). This is totally different where they negotiate with your creditors to lower your interest rates. Just make sure that the company is a member of the National Foundation of Credit Counselors(NFCC)
- If you get a summons and fail to answer it or show up in court, the creditor will get a default court judgment which typically lasts another 10 years and gives them other means to collect (wage or bank account garnishment, liens, etc.). What did this unknown debt settlement agency say they would do for you? Too many debt settlement companies simply hold your money, take their cut, then try to work out a settlement for a lower amount, totally trashing your credit in the process. But many creditors do not fall for that, and if they take you to court, can still get a judgment against you. So if you fail to answer the summons or show up in court with a defense, don't be surprised if money suddenly disappears from bank accounts or your paycheck is suddenly smaller.
* Some answers may have been provided by Yahoo! Answers.