I had a credit card account with Capital One bank which I opened in June. The last payment I remitted was in April. The balance was around $1,500. Since then, my husband has lost his job 3 times due to the plummeting housing market (he was in commission sales for building products for the residential market) -none of which were his fault (losses due to downsizing, mergers, etc). He was on unemployment for a brief time, we lost our home to foreclosure, had a car repossessed (which we were able to redeem/recover). We have four young children. We are honest, hard working (not irresponsible deadbeats), however we were just trying to stay afloat. Obviously, we have had to put this on the back burner.
The account was placed with a collection agency NCO back in October. They sent us a letter asking for a settlement of 55% of the balance they show of $3,328.92 (principle $1,555.49 and interest $1,773 at 25.9%IR).
NCO sent it back to Capital One in November. Capital One sold the account on March 22 to Northstar (another collection firm) for $3,528.67 (I obtained this information over the phone from Capital One).
Northstar never sent me anything on this account. I phoned them to make sure of this and they said that they sent it immediately to Trak America who uses Frederick Hanna law offices to collect.
I receive a letter from Frederick Hanna on June 18 stating that they represent Northstar Capital Acquisition LLC Asignee of Capital One Bank and that I owe them $6,039.59!!!
I sent a letter disputing this debt to Hanna on July 1, and also asking them to only contact me in writing. I also demanding verification of this debt.
On July 10 I receive another letter from Hanna telling me only the following: account was opened with Capital One on June 5; states the account number; last payment received was April 11; our client has verified that the balance of $6,133.33 to be true, correct, and still owing at this time. (notice how the amount has gone from $6,039.59 to $6,133.33 in less than a month!) In this letter, the state they are willing to offer a settlement for $5,900.00 - get out of town! Also, they state that I should resolve this by July 31 (20 days!).
On July 25 at 10:30 am, I receive a knock at the door - sheriff car in the driveway - it is a summons from Hanna and I have 30 days to respond! Just 15 days after he sent me the "verification/settlement" letter. I should not have done this, but I was MAD - I called Hanna's office. The guy I spoke with was surprisingly pleasant, but he stated that he is getting the $6K figure right off of my credit report - how can that be? I am requesting a copy tomorrow from all 3 reporting agencies. When I spoke to Capital One, she stated she was reading the charge off from my credit report also - so maybe, he is lying?
Here is where I need help - we are trying to get back on our feet in light of the financial hardships we have been through recently. We are making progress, paying everything on time, renting a home, and now this! I am trying to write an answer to this summons and have ABSOLUTELY no idea how to do it. I have stayed up until 3A.M. Several nights trying to find advice, anything on representing myself in court - which I will have to do as I do not have funds for an attorney. I do not want him to win a judgement on me as I feel he is in violation of the F.D.C.P.A. For several things. If there is anyone out there that can help, please advise! I am desperate! This amount he is asking for is ridiculous and he can't prove it!
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