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Re: RMA plus Amex Litigation advice?
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Posted by LittleWays
(205.188.116.84) on April 22, 2004 at 21:30:35:
In Reply to: Re: RMA plus Amex Litigation advice? posted by Debt Diggler on April 22, 2004 at 18:02:59:
The letters we received from RMA both state that we have 30 days to request debt validation as per federal laws. It proceeds to paraphrase the laws and states that if we don't respond in 30 days that they will proceed with collection of the debt based on their accounting of it and will inform us of any judgement reached against us. The CA's accounting of the debt can be and has been known to be in error. The law provides validation as a means of protecting the consumer from erroneous charges among other things. If they demand full payment and we don't have it, their next step is to seek a jugdement from which they can attach eligible property as well as take our wages. (although I dont know how they would garnish a self-employed person's changeable income.) They are required by law to tell us that we can acertain the details of the debt and must give us 30 days to make the request. Once they receive the request for validation they must cease all collection activities and can be fined $1000 per violation. I already feel like I can take a breath, from their constant calling. The CA have tried to get away with producing limited records of the debt.I have read that sometimes they just send the debtor a general billing statement, which is not enough. Case law shows that some judges are interpreting validation as a complete accounting of the debt from initial signed agreement to detailed lists of charges and fees. So if they go into court without the debt validation and the debtor doesn't show (which often happens), they will win a default judgement and proceed take what they can, with the help of local authorities. If they go into court without validation and we do show, we stand a better chance of avoiding a judgement. If they validate and go for judgement, then BK is our only option aside from winning the lotto. Do we want to avoid the debt, no. We want to set up a payment schedule, reduce the incredible stress, live life and proceed to make our business prosper. I still don't understand how they decide that one person is a to be sued, while another slips between the cracks. We hope that the account is returned to Amex, and that we can negotiate a settlement that will not take food off our family table. Thanks f
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