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Am I Legally Obliged to Pay Security Credit Services that Bought My Debt? – Julie

By on February 16, 2012
Am I Legally Obliged to Pay Security Credit Services that Bought My Debt? – Julie

I have debt with Wells Fargo, I’ve received a court summons from an Attorney’ Office which is representing a company called “Security Credit Services, LLC” which must have bought my debt from Wells Fargo.

I do admit that I had a loan from Wells Fargo some time ago and ran into some hard financial times and was unable to make payments for a while, which created “LATE FEES & PENALTIY COSTS” every month which snowballed into a greater balance than I owed them.

My balance got so out of control each month and making my payment would never reduce the balance. By the time my next month’s statement came, my balance would be more than the beginning balance even after sending them the payment due. The LATE FEES & PENALTY would be more than the payment I just made.

I just gave up because the only solution they offered was to pay it off at a reduced amount, which I could not honestly do. Anyway, I sent an answer to the lawyer and cc’d the court that I did not borrow any money from this Security Credit Serv company and asked that they send me proof of the debt. WHAT CAN I EXPECT AND WILL I BE FORCED TO PAY THEM? Thank you…….

Julie

Dear Julie,

You can be sued, you could lose, they could get a judgment, and you might wind up with a wage garnishment.

An entity that purchases a debt buys your obligation. The bigger issue is if they got sufficient information in the purchase of the debt to actually be able to verify the debt.

Some states have become a lot tougher with requiring debt buyers to be able to verify the debt. Maryland for example is one of the most recent.

Don’t be surprised if they respond and say the debt is verified. After all, what does verification really mean?

You would be smart to find a local consumer attorney and consider getting them to represent you in the lawsuit. They may be able to get it tossed altogether. One place to look for a consumer attorney is through NACA.

READ  Most Lawsuits for Credit Card Debt Are Flawed and Defective. Fight Back And You Could Win.

There are all sorts of issues your consumer attorney will explore, including if the debt buyer engaged in robosigning of the affidavit and uncovering what documentation they really have to proceed.

Please post your responses and follow-up messages to me on this in the comments section below.

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About Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

2 Comments

  1. Beth

    May 10, 2012 at 2:32 pm

    I had a ‘sort of’ similar situation with NCO. They sued me, I appeared and spoke with the attorney representing them. I contested, saying I never heard of them, much less owed them money. Court date reset. Appeared again (with much praying in between).  Attorney said suit had been dropped but “could be re-opened at any time.”  Now they just re-age on my credit report every month…

    • Steve Rhode

      May 10, 2012 at 3:01 pm

      Have you disputed this with the credit bureau yet?

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