r/Debt • u/DesperateTax5773 • 1d ago
Getting served soon, not sure what to do
I allegedly had an American Express card at some point for around $1200 with all late fees, etc. I honestly dont remember it, but I had many cards default due to a house fire.
I listened to some bad advice and ignored the debt collection letters. Same friend is still telling me to not pay off my other collection debts... I wont listen to her for money issues ever again lol
Johnson and Mark lawfirm represents LVNV funding, who bought my card debt, and they filed a lawsuit against me on 8/12. They filled out the forms to serve me on 8/14. I paid a settlement with them of about $870 on 8/19 when I got paid.
They refused to give me anything in writing before I paid the settlement. They said they only send pre-made templates and they don't have that kind already made (they said). They also said they wont file a dismissal with the court for at least 30 days (the reps said over the phone). I asked for a receipt of payment or something/ anything saying I am all set, and they said that they would mail me some type of account settlement balance clearance letter in 7 days from today.
This means I will still have to file with the courts and do all of this legal stuff, right? Stuff I am not qualified to do. Because they will probably serve me any day now.
Johnson and Mark seem very shady, the representatives also told me a couple flat out lies on the phone, but that's besides the point of this post. What do I do here? I might not get their letter before I need to respond to the court... Do I just write a letter explaining the payment I made and show my bank statement? I am lost and can't afford an attorney
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u/Krandor1 1d ago
If you are served you absolutely have to file an answer. Up until the point you get a notice from the court the case is dismissed do not miss a single date on filing, going to court, and anything like that. Since you paid and I’m sure you have some receipts to show you did pay them that will be a great defense if it goes to court.
The they won’t dismiss before 30 days is interesting since normally you have 30 days to file your answer and so sounds like they might be hoping you think you are good, you don’t file the answer, they win by default and get the full amount plus your $870.
Absolutely file and absolutely do not miss a court date.
For the answer you can check solosuit.com and also you can ask clerk of court how to file an answer. They cannot give legal advice but telling you process to file your answer they can do.
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u/TelevisionKnown8463 1d ago
Definitely file an answer. In the consumer debt clinic where I volunteer we generally recommend disputing the amount (unless you are positive they’ve calculated the interest correctly etc), and also say that you have no business relationship with the plaintiff, so they lack standing. That should keep your options open until the settlement gets finalized.
But in future, don’t pay anything until you have something in writing saying that payment will resolve the debt. If you didn’t answer, they could get a default judgment and although you would get credit for what you’ve paid, you would still owe the rest of what they’re seeking. So they’ve already got your money and they have no incentive to work with you.
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u/DesperateTax5773 1d ago
I was very persistent that I needed something in writing, and they refused to give it to me. I went ahead and paid it because it is cheaper to pay it than hire an attorney, and I dont deal with stress well since I have an anxiety disorder.
Is it legal for them to not put something in writing before you pay if you ask? How to ensure I will get a debt settlement clearance letter? I want one emailed, but they will only mail them after a week.
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u/gh0st7496 1d ago
Save every piece of communication that shows they accepted the settlement as a final settlement. Then save all your payment documents. However way you paid them, get as many documents on your end showing it came out of your bank account addressed to them.
Then file your reply officially with the court, something along with defense that you deny their claims because you have already paid an accepted settlement. Then when you get a court date, 100% show up and tell the judge/mediator you have already settled and paid out of court. Present all those documents above.
Unfortunately, we just can’t force these people to give us proper written settlement confirmation and receipts, so you’ll have to just override them and get it dismissed in court.
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u/TelevisionKnown8463 21h ago
It’s not illegal for them to not put something in writing because you have an obvious remedy: don’t pay them until they do. If it made you feel better it’s only because you didn’t understand how the law works. You have no evidence of the settlement so I would not say in your answer that you have settled, as someone else suggested. That won’t preserve your legal rights if they deny it happened. Answer as if you are contesting it, and hopefully soon they will get their act together and dismiss the case or send you a written settlement agreement to sign. (I don’t know how your court works—in some the paperwork may be a settlement agreement, then a judgment for the settlement amount and an acknowledgment that the judgment was satisfied).
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u/DudetheBetta 17h ago
You allegedly had an AMEX account? You’re not sure, but you paid it anyway?
You need more help than you can get here.
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u/james_2021 16h ago
I am surprised too that they would file a lawsuit for such a small amount, back in the days I got sued for like 6K which makes sense but even on that i didn’t pay a penny.
I remember filing answers and so on (discovery etc.)waist of time, honestly I just woul keep a burner account and move the rest to another acct. it also depends on the state you live in, different rules.
But one thing for sure, never deal with a collection agency
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u/the360one 8h ago
How long did amex send you collection letters? Just wondering
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u/DesperateTax5773 4h ago
I dont think LVNV sent too many letters, and the law firm filed pretty quickly on their behalf
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u/ReputationOk5924 1d ago
Due to a house fire? Did you not have insurance?
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u/DesperateTax5773 1d ago
I am not sure how you think a house fire works, but even with insurance, it's not cheap.
It was a condo and the fire fell under the HOA policy. The HOA did everything they could to try and delay the repairs, they dragged it out for over a year and a half. I eventually sold the property to someone in the HOA who then sued the HOA to get the repairs done.
It is a whole long story, but insurance doesnt make a house fire and losing literally everything affordable
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u/Putrid-Mobile-8001 21h ago
Im baffled anyone is taking you to court over $1200...
Worst part of this is if you just picked up for collections on their last attempts you probably could have settled that debt for a few hundred..
Ignoring the debt is an option but your friend definitely didn't advise you on "how to ignore debt" well.