Defaulted PayDay Loan

QUESTION: Can I be sued in the Texas for a defaulted online payday loan?

I taken out a few payday loans online and pretty much got in over my head paying them back ! Can I be sued in Texas?

ANSWER: Most payday lenders do not sue in Texas. Having said that, they are certainly entitled to sue you if you defaulted on a loan.

I would be curious to know who is threatening the lawsuit and whether they are a “usual suspect” – – the kind of payday lender that actually does file suit in Texas. If they are not customarily in court, then their threat is illegal, and possibly a violation of either the Texas Debt Collection Act and/or the Federal Fair Debt Collection Practices Act. The collection industry for payday lenders is infamous for being abusive. I would suggest you keep track of all collection phone calls and keep all of the collection letters.

If the threat to sue is in writing, I would suggest you forward a copy to a consumer rights attorney. If the threat to sue is made verbally, you might still want to talk to an experienced consumer rights attorney who can do a bit of research and find out whether this collector is blowing smoke, or not.

Finally, you might want to have a look at your credit bureau reports through www.AnnualCreditReport.com (That is where you can get your credit reports for free.)

This information is provided for educational purposes only. There is no attorney-client relationship with Karni Law Firm until a contract is signed by the attorney and the client.

 

Not Showing Up To A Civil Suit Court Appearance

QUESTION: What would happen if I do not show up to a hearing concerning credit card breach of contract?

I am a house wife who made regular payments until my husband stopped giving me any money to pay on credit card and anything else at all . I have no income at all to work with and had to move out of our house and in with family just to stay alive due to him canceling my medical insurance and not buying food for the house now I am being sued.

ANSWER: The collection industry can be ruthless. They don’t care what your circumstances: if they can legally collect against you, they will.

Depending on all of the circumstances surrounding your finances, you may want to consider bankruptcy. Bankruptcy will stop the lawsuit against you dead in its tracks.

Otherwise, I suggest you do everything possible to defend yourself. If you/family can afford to hire a consumer rights attorney, that’s your best bet. The creditor/plaintiff is likely to get a judgment against you by default. Even if you cannot afford to pay for the judgment now, the judgment-creditors are patient: they will wait until you find employment, re-marry, gain an inheritance, or win the lottery. Meanwhile, a judgment on your credit reports can be devastating. You should do everything you can to avoid having a judgment entered against you.

This information is provided for educational purposes only. There is no attorney-client relationship with Karni Law Firm until a contract is signed by the attorney and the client.

 

Removing A Dismissed Lawsuit From Credit Report

QUESTION: If you were taken to court for a broken lease and the case was dismissed is it possible to get it off your credit report?

My boyfriend left his old apartment a few years ago on account of his roommate who was unable to pay the full rent and left soon after. They were taken to court but the case was dismissed. Now we’re trying to get a house but the broken lease is still on his credit report. Is it possible to get it taken off because it was dismissed or does he still have to pay it?

ANSWER:The detail that is missing: what sort of dismissal was it? Your boyfriend needs to send a letter to the credit reporting agencies that are listing the broken lease. He will probably need to send a copy of that same letter to the past landlord disputing the negative information. If the dismissal documents from court are favorable to your boyfriend, he should attach them to the dispute letter. He should probably attach the dismissal documents in any event.

Your boyfriend should be gathering information about being declined or rejected from the new housing opportunity. In case the derogatory information on this credit report needs to be removed, and if it is NOT removed, then your boyfriend will have terrific grounds for a lawsuit against the past landlord and/or the credit reporting agencies under the Fair Credit Reporting Act.

If he needs assistance going through the dispute process, he should contact an experienced attorney. Most attorneys do not charge a fee for helping with the dispute letter writing process, or the resulting litigation, since the federal laws allow for fees to be paid by the defendants.

This information is provided for educational purposes only. There is no attorney-client relationship with Karni Law Firm until a contract is signed by the attorney and the client.

 

Collection Case Dismissed For Lack Of Prosecution

QUESTION: I had a debit collection case that was dismissed for Lack of Prosecution.

The case was dismissed for Lack of Prosecution. I had filed a motion to reinstate the case and the judge said he wasn’t going to reinstate. so the  debt was sold to another collection agency. This was the 4 or 5 law firm that has come after me. What can I do to get this off my credit report? The debit type is a private student loan and this loan is NOT a FFELP.

ANSWER: There are two different issues here: the matter of the lawsuit seems to have been resolved if the case was dismissed. I understand that you have concerns that another debt buyer will sue you for it again. That is possible, although unlikely.

On the credit reporting side, you are encouraged to send off a written dispute letter to the credit bureaus and to everyone who ever tried to collect this debt. You should list all of the reasons why you dispute the negative information on your credit report. The fact that you were sued (and that the lawsuit was dismissed for lack of prosecution) does not qualify as a good reason to remove the debt from your credit reports.

If you dispute the debt with the present collector (and every collector beforehand) then they are prohibited by federal law from communicating information about the debt to yet another 3rd party. All of your disputes should be handled in writing, sent by certified mail, return receipt requested.

This information is provided for educational purposes only. There is no attorney-client relationship with Karni Law Firm until a contract is signed by the attorney and the client.

 

Getting Sued By A Pay Day Lender

QUESTION: I have multiple online payday loans out since 2012 can they sue me?

I tried to work out arrangements with them but they wouldn’t settle what I could afford and refuse to give me an address to mail payments to them can I be in legal trouble?

ANSWER:  Theoretically, they can sue you. Generally, however, the payday loan collection industry is notorious for its illegal debt collection tactics. I recommend you consult with a consumer rights attorney, not just to review the terms of the payday loans, but also to determine if your rights have been violated (as well as your credit reporting rights.) 

Many consumer rights attorneys do not charge their clients up front, because many of the consumer rights statutes allow them to collect fees from the bad guys.

This information is provided for educational purposes only. There is no attorney-client relationship with Karni Law Firm until a contract is signed by the attorney and the client.

Liens Against Your Property

QUESTION: I went to refinance my home and found 6 liens. None of them actually belong to me. How does this happen and how can I fix this? Seem lazy.

How do people file liens against property without proof it is the correct person. I have to prove these are not me. Some are easy, because the judgments have DOB or Social Security number. They never should have been placed on my title in the first place. Do I have any recourse against the person who placed them there?

In addition to the answers the other attorneys provided, I would also suggest you check your credit reports (if your mortgage broker or other banker hasn’t already done that for you recently). Get your free reports at www.AnnualCreditReport.com. Also, you may want to do some homework and learn more about the underlying claims or judgments that resulted in the liens. If these judgments are related to issues that are rightfully yours, you will probably need the assistance of an attorney to unwind the judgments (assuming you were never served with process.)

This information is provided for educational purposes only. There is no attorney-client relationship with Karni Law Firm until a contract is signed by the attorney and the client.

Actions That Can Be Taken After A Default Judgment

QUESTION: I have a default judgment, accounts frozen, money taken. There’s a balance, what actions can be taken?

The default judgment was $5,947 plus 5% annum over 2yrs court cost and receiver attorney fees 25% added to total up @ $10,284.. $6,411 was taken from frozen accounts leaving a balance of $3,878 on judgment. Can this be negotiated or settled for less…need legal direction…..

ANSWER: While you can certainly work with the judgment creditor to settle the judgment yourself, I would encourage you to consult with a consumer rights attorney before you proceed alone. Your rights may have been violated in the way that the judgment was taken, the way that the judgment is now being collected, and with respect to your credit reports. I would especially encourage you to talk to a lawyer if the judgment was taken by a Third-Party Debt Buyer (not the original creditor). 

Finally, you should not agree to anything negotiated with the judgment creditor unless it is in writing. 

I have an important follow up question for you: were you served with papers when the lawsuit was originally filed? If not, you should consult with an attorney to have the judgment completely unwound.

This information is provided for educational purposes only. There is no attorney-client relationship with Karni Law Firm until a contract is signed by the attorney and the client.

Settling A Credit Card Lawsuit

QUESTION: I am involved in a credit law suit in TX and a court date has been set. I have been offered a settlement by the plaintiff for about 60% of the debt payable over 5 years with no interest. The questions I have are: 1.) Is the offered settlement reasonable or should I ask for a larger discount? The discounted amount is slightly less then the principal. So effectively the discounted amount strips out the accrued interest and the attorney’s fees. 2.) The plaintiff’s attorney has drawn up a Rule 11 Agreement and a Agreed Final Judgment to be filled with the court, which requires me to agree to a full judgment sum. Do I have to agree to the Final Judgment? Do these agreements have to be filled with the court?

ANSWER: You have many valid questions. The debt collection lawyer might be giving you answers, but you should certainly seek counsel. An attorney with experience handling the defense of credit suits should review the agreed judgment before you sign it. 

With respect to your credit reports: the agreed judgment will appear on there, just as any judgment would. Have you considered other routes with the goal of avoiding a judgment altogether? Depending on the amount of debt that is at issue, you might be better off hiring an attorney, or at least consulting with an attorney. There are not just debt collection defense matters here, but also debt collection abuse and credit reporting angles that should be considered.

This information is provided for educational purposes only. There is no attorney-client relationship with Karni Law Firm until a contract is signed by the attorney and the client.