 How
a lawyer aids debt-collection battles
|
 Dear
Bankruptcy Adviser,
I have been disputing a charge on a credit card. It has now been
charged off and I am being threatened by a collection attorney.
I still want justice on the original creditor for what I think is
breach of contract. How long do I have to file a lawsuit on them?
And can the collection attorney do anything to me even though I
am pursing a lawsuit with the original creditor?
-- Bernard
 Dear
Bernard,
It's important that consumers take a stand when they feel they've
been wronged. Part of getting a good result, however, is knowing when to ask for
help. In this case, you are heading for numerous battles on different fronts,
all of which would benefit greatly from working with an attorney.
First,
you'll be defending yourself from a collection attorney. The fact that you're
pursuing a lawsuit doesn't affect this particular battle -- unless you win. At
that time the collection attorney won't have a case. Prior to that time, however,
you're probably going to get a lot of annoying phone calls. If you retain counsel,
all collection inquiries can be filtered through your attorney.
Let's suppose you take the calls, however. You'll be asking the
collections attorney for a validation of the charges you are contesting.
However, you aren't likely to get the kind of cooperation you deserve.
You may experience frustrating delays and other stonewalling tactics
that border on the illegal, but aren't punishable by law (a common
collections strategy is upsetting you until you agree to pay the
debt out of sheer frustration). Evidence on paper is critical in
persuading a judge or any of the credit bureaus, and a lawyer will
have a much easier time getting these documents for you. Threats
and negotiating tactics from a licensed attorney simply carry more
weight. That's not fair, I know, it's just how the legal process
has made attorneys valuable and sometimes essential.
Second, you'll be suing the original creditor for breach of contract.
This is a lot more complicated than you might think. You'll need
to be conversant with the specific laws and regulations you contend
have been breached and have documentation to support those specific
claims. Additionally, the statute of limitations will vary depending
on your state and the nature of your claim. A lawyer in your state
should know the relevant statutes -- and if they don't, find a new
lawyer!
Finally, let's suppose that one way or another you actually win
your lawsuit. This is just the beginning. You still have negative
marks on your credit until you send certified letters (with appropriate
appended documentation) to all three credit bureaus -- as well as
to the original creditor -- and receive documentation in return
saying that the marks have been removed. Again, this can be a long
process that relies a lot on getting people to take your phone calls,
call you back and actually assemble paperwork for you instead of
putting your complaints on their back burner.
In short, I applaud your willingness to protect your own interests,
and the best advice I can give you is to see a qualified professional
ASAP. On the one hand, hiring an attorney costs money. On the other,
your time is valuable, and when you need your good credit, such
as when getting a loan, that's got a financial advantage as well.
An attorney will know the relevant laws and can cut through the
delaying tactics commonly used by your opposition. After all, you
don't want to have a year or two of having bad credit while you
pursue a lawsuit and avoid a collections attorney before you even
get to have the wild and wacky time of persuading three credit bureaus
to restore your credit. Keep fighting the good fight -- just don't
do it alone.
Justin Harelik is a
practicing bankruptcy lawyer in the Los Angeles office of Price Law Group. To
ask a question of the Bankruptcy Adviser go to the "Ask
the Experts" page, and select "bankruptcy" as the topic. |
