My husband got a call this morning from a credit card company saying he’s in ‘pre-trial’ for his debt. It’s under $1,000 and less than two years old. They claimed if it’s not paid soon, they could put a lien on our belongings, and that waiting would add legal fees and attorney costs.
They also said they’ve sent six letters, but we’ve only received one about two weeks ago. We were planning to call and negotiate once our tax return arrived.
Can they actually do this? I told him to record the next call when they call back to ‘negotiate.’
Update:
My husband ignored all advice and negotiated a ‘one-time settlement’ of $600. He paid it from his debit card, and the company sent an email agreement. Payment is supposed to come out by midnight. I’ll check the email when he gets home from work. Not sure what to think of this…
They’re trying to scare him. A credit card debt under $1,000 doesn’t just turn into a lien without a lawsuit. Record the call, don’t admit to anything, and verify the debt before sending any money.
If they were taking him to court, they would just do it. They wouldn’t waste time with threats over the phone. This is a tactic to make him panic and pay.
Not saying they won’t sue eventually, but this isn’t how it works. If a cop had a warrant for you, they wouldn’t call and warn you first, right? Same idea.
Does he own property? Is the debt still within the statute of limitations? Never discuss debt over the phone with collectors. Their whole job is to scare you into paying on the spot.
@Rafe
That’s what I thought too. It felt off that they’d just call and say all that. We do own our home, and yes, the debt is still within the time frame.
Kai said: @Rafe
That’s what I thought too. It felt off that they’d just call and say all that. We do own our home, and yes, the debt is still within the time frame.
Not sure what the best move is now.
They legally can’t place liens without a court ruling. Credit card debt isn’t secured debt, so they don’t have that kind of power.
Kai said: @Rafe
That’s what I thought too. It felt off that they’d just call and say all that. We do own our home, and yes, the debt is still within the time frame.
Not sure what the best move is now.
Tell them you want proof of the debt in writing and that all communication needs to be through mail. Don’t talk to them on the phone.
They can say they’ll put liens on things, but that doesn’t mean it’s true.
There’s no such thing as ‘pre-trial’ for debt. They either filed a lawsuit or they didn’t. And even if they did, they’d still have to win in court, wait for you not to pay, get a court order for asset disclosure, then file a lien. It’s a long process, not a simple phone call.
Do not let them rush you into paying. Stop answering their calls. When you’re ready to settle, you call them and stick to a plan.
A script you can use:
‘I got a letter from you on [date] saying I owe $X. I’d like to set up a payment plan of $100/month. If that doesn’t work, I will consult a lawyer before proceeding.’
DO NOT give them access to your checking account. They can and will pull more money than agreed. Instead, set up a separate account just for paying this off.
Get everything in writing before you send a single dollar.
@Dakota
Too late. My husband ignored everything and paid them $600 from his debit card. He got an email with a ‘one-time settlement’ agreement. Now I just have to hope they don’t drain his bank account. I don’t even know what to say.
I don’t even know how to respond to this situation.
Paying was bad enough, but using his debit card was worse. If they’re shady, they can keep charging him. He might need to switch banks entirely to be safe.
I’d also tell him he needs to consult you before making financial decisions like this again.