I settled a debt with a creditor and they sold the remaining balance to someone else now want to sue?

I had a credit card with Chase and their attorney sent me a letter saying I have 30 days to dispute or else they will take legal action. They said they will garnish my wages and also put a lean on my house? Is this legal?

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Posted June 7th, 2010 in Debt Settlement. Tagged: , , .

4 comments:

  1. stan c:

    Run your free credit reports from annualcreditreport.com or call them toll free @ 1-877-322-8228 for all 3 free reports. If in shows settled, then tell the attorney you’ll see him in court. Don’t assure if you fix them the copy they will not sue. They all say they’ll drop it but will go to court knowing you won’t show. If it doesn’t show on the report settled or anything in writting, you should still show up and explain the situation.

    June 7th, 2010 at 10:02 pm
  2. Yousaidit:

    When you settle a debt with a creditor it is extremely important to get a letter stating that it is settled and what the terms are. If you have that paper, you’ll be fine. Dispute the debt immediately and fax that letter to Chase.

    If not, I would suggest that you get a copy of the check or credit card statement showing the settlement amount and fax it to Chase disputing the debt. Also, go to all three credit reporting agencies and see if it shows settled and the terms (yes, it actually states: settled for less than amount due, total due $0). Copy that and send it along with the copy of the cashed check/cc statement.

    And the most important thing you must remember, don’t be afraid to CALL them and tell them your situation.

    June 7th, 2010 at 10:02 pm
  3. Shane F:

    Did you get in writing from your creditor? If not, you are pretty stuck with it but you can copy the check that you already settled with creditor. You can try dispute it but if it doesnt work. Just show up the court and explained to Judge that you already had settled with other creditor and show the copy of check after you served summons. No, they cannot garnish your wages or putting lien on your house without going to court first. If you don’t show up to court and they can win judgment against you. They can garnish your wages and putting lien on your house. Don’t worry everything will be alright. Good Luck!

    June 7th, 2010 at 10:02 pm
  4. Oggy Boggy:

    That depends. I know where I live in Texas, it’s illegal to garnish anyone’s wages. If I were you, I would talk to a lawyer.

    June 7th, 2010 at 10:02 pm

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