Consumer Credit Counseling Texas

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Some lady just delivered a package to my house that says I'm being sued by a company called Arrow Financial Services, this was a credit card I obtained from Providian and what happened was that I went through a consumer credit counseling program a few years ago and they did not accept the reduced payments this credit counseling firm was sending them. I did not find out about this until 5-6 months later and more than $600 in extra fees added to the account, I tried to work out a settlement but Providian declined and I just blew them off, now I have this citation from a court dated July 07 and don't know what to do!!! Should I try to settle out of court with the lawyer? should I go to court? what's the best way to go about this? I'm in Texas so I don't know if they can garnish wages or what not......thanks for the help!!!!

Best Answer

OC is correct except for requesting validation UNLESS the summons has some type of wording on it that states that if validation/verification is requested, the Plaintiff will cease all collection activities, including the suit, until validation/verification is provided. If it does not contain those words or similar, requesting validation at this point would be moot and you might request a Discovery if you need the info to aid you in fighting them. Though requesting a Discovery can be a double edged sword if you are still within the collecting SOL. If they dredge up the information - they can use that same info against you. Where they probably would not have that info if it is not requested by you. Like OC said, the Texas collecting SOL is 4 years. It starts from the last payment or charge you made on the account BEFORE it was charged off by the original creditor. Even though you attempted to pay but they refused payment, they cannot legally reset the collecting SOL. In Texas a "written contract" with a collector, signed by both you and the collector, MUST be made for the collecting SOL to be reset. Order your credit reports ASAP. If it has been 4 years or longer since your last payment / charge with the original creditor, include in your answer An Affirmative Defense Of SOL. Then file a counterclaim against Arrow for filing suit on a time barred debt - requesting $1000 for it. Whether you are still within the collecting SOL or not, look over your credit reports for all violations Arrow is reporting (there probably is quite a few violations) Then include the violations in your counterclaims - requesting $1000 for EACH violation. A few violations that Arrow likes to report are - Past Due, Past Due Dollar Amount, Factoring Company, Open Account, possible re-aging of the fall off date, some other creditor/collector listed as the original creditor rather than them reporting original creditors name, etc., etc., etc. (a charged off account CANNOT be a factored account) If you have plenty on them for counterclaims, they may try to get you to compromise in if you drop the counters, they will drop the suit, and then slink away. Or, if you have far more in counters on them than what they are suing for, they may offer "you" a small amount if you agree to drop the counters and they drop the suit. If you have them on quite a few "concrete" violations, you may be able to find an attorney who will take your case on a contingency basis. If you win the suit and / or the counters, the atty would / should request that Arrow pay his / her fees. If you lose, you will have to pay your atty. If you handle it yourself, you need to use the Texas RCP (rules of civil procedure) as a guideline in writing up your answer. You also NEED to read the FDCPA, FCRA, Texas debtor / creditor and SOL statutes as you need to be able to cite the statutes in your answer. It wouldn't hurt to include case law either. I'm including a couple links for Texas - statutes and RCP, terms of service (to see if they properly served you) etc. (all are free sites) http://www.capitol.state.tx.us/statutes/ cvtoc.html http://www.megalawserve.com/tx/tx.php http://www.findlaw.com/10fedgov/judicial/ district_courts.html You might click on my profile and click on the links I have listed for the FDCPA and the FCRA. You might also click on the last link I have listed in my profile.It is a free site where you can find more Tx. info, feedback and suggestions on writing up your answer, counters, etc.