How To Avoid Settlement Tricks Used By Credit Lawyers

Have you ever been named in a civil action by a credit card company? It is not pleasant, and what will happen next even less encouraging.

Here is a typical sequence of events.

Section One: overuse of a credit card, you miss some payments, you pay $ 39 per month for late payment, $ 39 per month for over limit, your missiles rate of 6% to 29.9%, the original debt of $ 10,000 growing rapidly.

Section Two: Do you miss 6 consecutivePayments while you are being harassed via phone and e-mail, the credit card company offers you a solution that will be discounted, the original, but would generally rather, is larger than the original $ 10,000 even with the rebate, you can not pay and ignore or reject the offer, the credit card company will license or sell your account, a credit collection law firm, a "credit lawyer.

Section three: you are being harassed by phone for severalMonths, you are offered a settlement, which usually only on the original loan amount, $ 10,000 in this example, you can not pay, allowing you to ignore or reject.

Section Four: The Attorney loan file a civil action for the full amount now, perhaps, $ 15000; you get on the state of civil and have 30 days time to respond or face a summary ruling in favor of the plaintiff. They panic and call Aunt Mabel and borrow $ 7,500 You are in the credit and beg for a lawyerSettlement. They agree and preparation of legal formalities. Visit their offices to check them certified and get the release.

Section five: You trade the $ 7500 for a receipt and a copy of "Without Prejudice Dismissal", which promises the creditworthiness of attorney with the County Clerk file.

You breathe a sigh of relief, that is over. Somehow will repay Aunt Mabel.

It is not over yet.

Section six: 5 years later you sell your house.On completion of the transaction, please check your billing. It is $ 7500 less than expected. You ask why. These funds were used to pay the $ 7500 lien on your property from 5 years ago. They are excited. As they talk, she paid the debt.

I am not a lawyer, but I have serious legal advice to anyone who tries to settle a debt - always require a statement that dismissed all claims of creditors. If a civil action was filed, then a "dismissal withPrejudice ".

Dismissal without prejudice is an action by the plaintiff in a case without the right to the case at a later date refiler dismissed. In other words, I want a 'through' please. In the example of a negotiated settlement credit card debt, leaves it to the defendant - you - open to a civil action for the balance at the whim of who owns the debt. The remaining debt could be sold to anyone.

Be careful out there.

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