Length of Time for a Collection Lawsuit in CA

[treehugger1]

This thread seems a bit off subject, but since we are talking about what to do for bank accounts, here are some that you might want to consider. All have fees, etc, but none will show up in a credit report or chexsystem report:

AccountNow, Bank Freedom, Netspend, Ready Financial, Walmart Money card, Western Union debit, and many more. All of these are quite legitimate. Some offer bill pay and the ability to pay bills using electronic ACH. Read the fine print for the details.

[sheilaE]

Question about the Walmart money card. How does it work and if my wallet is stolen, is the card protected say like a bank debit card is protected?

[treehugger1]

You will need to provide your own due diligence here. Google Walmart Money Card and read about the terms and service.

[keptdigging]

How are they going to know what your credit score is if they never asked for your SS number when you opened account? They do ask for it when you sign up for a MC debit card.

I've had it for so long I didn't remember this. I wonder if they asked for it when I upgraded to a merchant account last year. Otherwise this is great news. My whole bankruptcy planning strategy is to sell assets on ebay to convert them to cash; will spend some on necessities and deferred maintenance and exempt the rest (California System 2). No ebay/paypal and I won't be able to get nearly as much for the stuff I'm selling.

So for me, definitely no paypal debit card. But they can't levy a bank account without notice and process and that should give me plenty of time and warning.

Thanks for all the other suggestions on banking alternatives everyone... this is valuable stuff to know.

[WhatMoney]

If you plan to do this, do it soon....hopefully before your credit crashes..
PayPal in May will begin checking credit reports before issuing the debit MasterCard. ..Just a heads up.

Thanks for the heads up. I'd seen the email about the amendments but had not checked the PayPay website until you mentioned it.

The old user agreement read:

2.4 Credit Report Authorization for Premier and Business Accounts. If you open a Premier or Business Account, you are providing
PayPal with your written instructions to obtain your personal and/or business credit report from a credit bureau. PayPal may obtain
your credit report: (a) when you open (or upgrade to) a Premier or Business Account, or (b) any time thereafter if PayPal reasonably believes there may be an increased level of risk associated with your Account. An increased level of risk includes, but is not limited to, a
high number of chargebacks or reversals, or suspicious activity associated with your Account.

The amendment to Section 2.4, effective May 11, 2010, reads:

In Section 2.4 (Credit Report Authorization) you additionally authorize PayPal to obtain your personal and/or business credit report from a credit bureau when you request certain new products, such as the PayPal Debit Card.

So the only real change is they are extending credit report checks to personal account Debit cards. However if you have never requested a credit M/C from them, or tried to enhance your funds availability by providing them with another credit card or your SSN, they should not have your SSN. How difficult would it be for PP to find out your SSN? Not very, if they felt like looking.

I doubt PP will start canceling PP/ebay accounts just for a poor credit report. At least half of their buyers/sellers would be dropped if they did that. Now will they cancel M/C Debit cards for existing customers? Guess I'll find out if they do...

[shark66]

A quick note on PayPal...

Had an actual PayPal credit card (issued by WaMu at the time), defaulted, got sued once they sold the account to Arrow, and have a judgment against me for a pinch under $4K.

Throughout all this time I had - and still do - a debit MasterCard issued by PayPal, never any problems with that one. If they were shutting down people's accounts for poor credit score, mine would've been gone a long time ago.

There are other issues that one should be careful with when it comes to PayPal, but this is not one of them at the present time.

My experiences only. YMMV.

[keptdigging]

5 months seems like a pretty short amount of time before they sued. Did they offer or did you discuss any sort of settlement? Did you mention the possibility of filing BK to them? Did you send a cease & desist letter? I have heard that this often triggers a suit.

I am meeting with an attorney tomorrow to discuss his helping me work through the cards. We're $125K in CC debt and our home is about $200K underwater, including a $120K HELOC, so I can relate to your comment about wanting to get back to being a productive member of society.

I stopped answering the phone, but neither verified nor sent a C&D. I think a letter got lost in the process... the most recent one was the initial "no attorney has actually looked a this yet" from their law firm (almost 2 months ago.) Nothing they sent me was anything beyond "you've defaulted so now you need to pay us in full." That is, not a single offer of sympathy, help, flexibility... making Amex different than EVERY OTHER CREDITOR... even Chase and Discover.

I was looking for them to be more serious before I called suggested they were forcing me into bk. But instead I discovered the suit. There's another thread I started on not talking to creditors and whether it was a bad idea.

I still haven't been served... I am so lucky I happened to look at the court site. They got me to get serious and retain counsel. I'm going to have plenty of time to set up my filing the way I want it. I will have a couple advances/balance transfers that are only 9 months old... I've decided to just take the AP risk (and I'll be sharing all in that thread.)

[Gracious]

Don't worry, possession is 9/10th of the law.

Keptdigging, whew 200K , is a lot of debt, I thought my 77K was a-lot. I have a non-asset case and a good attorney. I recommend listening to your attorney and not hiding assets, 5 years is a long time in a lockup. But realize this, BK 7 is the only way to go since 1. my credit is already trashed, 2. it would take me several years and about 175K in taxable earnings to pay my creditors back, 3. I don't have to pay taxes on my realized "gain" of 77K like i would if I negotiated repayment with my creditors. 4. I don't have creditors calling me nonstop to collect or negotiate. At 63 YO, I don't have that much time let to be hasseled by creditors since they drove me to file BK with their out of no where interest and principle increases. Screw em.

[Gracious]

Helocs may be recourse paper

Keptdigging, i am pretty sure that Helocs are recourse paper and also if discharged may be considered gain by the FED tax boys depending what you used the money for. I heard they are getting aggressive about the tax repayment. Check with your attorney and CPA to avoid cardiac arrest.

[keptdigging]

Keptdigging, whew 200K , is a lot of debt, I thought my 77K was a-lot. I have a non-asset case and a good attorney. I recommend listening to your attorney and not hiding assets, 5 years is a long time in a lockup. But realize this, BK 7 is the only way to go since 1. my credit is already trashed, 2. it would take me several years and about 175K in taxable earnings to pay my creditors back, 3. I don't have to pay taxes on my realized "gain" of 77K like i would if I negotiated repayment with my creditors. 4. I don't have creditors calling me nonstop to collect or negotiate. At 63 YO, I don't have that much time let to be hasseled by creditors since they drove me to file BK with their out of no where interest and principle increases. Screw em.

Whoa there. We've been talking about keeping assets away from collectors... not hiding assets in a bk! And in the end a creditor with a judgment can haul me in under oath and ask where they are. Since along with bk fraud, perjury is something I don't intend to commit... it'll be ch 7. But I do want to keep their hands off my money in the interim so I can do a little bk planning, and let my balance transfer sins age a little more.

[keptdigging]

Keptdigging, i am pretty sure that Helocs are recourse paper and also if discharged may be considered gain by the FED tax boys depending what you used the money for. I heard they are getting aggressive about the tax repayment. Check with your attorney and CPA to avoid cardiac arrest.

Here in California, whether a Heloc is recourse paper is an "it depends" question, in my case, it most definitely is. But a bk discharge eliminates the "recourse" (though not the lien). As for being a taxable gain, not sure where that info comes from. IRS pubs themselves are pretty clear that debt discharged in bk is not taxable. "Depending what you used the money for" sounds more like the rules on mortgage interest deductibility than anything with regard to debt discharged in bankruptcy.

I'm one of those few Americans who does his own tax work... no CPA to consult and certainly not hiring one when the IRS pubs are clear. If you've got a reference to something that says any debt discharged in bk is taxable, I'd love to see it.

Or maybe you were talking about debt forgiveness outside of bk.

[GoingDown]

I've had it for so long I didn't remember this. I wonder if they asked for it when I upgraded to a merchant account last year. Otherwise this is great news. My whole bankruptcy planning strategy is to sell assets on ebay to convert them to cash; will spend some on necessities and deferred maintenance and exempt the rest (California System 2). No ebay/paypal and I won't be able to get nearly as much for the stuff I'm selling.

So for me, definitely no paypal debit card. But they can't levy a bank account without notice and process and that should give me plenty of time and warning.
Thanks for all the other suggestions on banking alternatives everyone... this is valuable stuff to know.

Don't count on that warning.

For some people, the first warning they get is when their checks start bouncing and their checking account debit card gets declined for a purchase. If someone is suing you, a checking account is no longer safe.

I use the reloadable Wal-Mart money card for most things. I can pay my water and other utility bills online using it. No more standing in line in downtown Phoenix waiting to pay a water bill with cash.

[keptdigging]

Don't count on that warning.

For some people, the first warning they get is when their checks start bouncing and their checking account debit card gets declined for a purchase. If someone is suing you, a checking account is no longer safe.

I use the reloadable Wal-Mart money card for most things. I can pay my water and other utility bills online using it. No more standing in line in downtown Phoenix waiting to pay a water bill with cash.

Pre-judgment???
An account at a bank you don't owe money to???

[WhatMoney]

But they can't levy a bank account without notice and process and that should give me plenty of time and warning.

To add what GD warned, the court, banks and creditors will never give you any advance warning if they are going to levy your bank account. You will get a letter from the sheriff and usually the bank a few days after your account has been frozen telling you what has happened and how you can file exemptions with the court to get your money returned.

Once you get a judgment you have to assume you can get your bank accounts frozen without notice at any time.

OH, I see you meant before a judgment, never mind.

[keptdigging]

To add what GD warned, the court, banks and creditors will never give you any advance warning if they are going to levy your bank account. You will get a letter from the sheriff and usually the bank a few days after your account has been frozen telling you what has happened and how you can file exemptions with the court to get your money returned.

Once you get a judgment you have to assume you can get your bank accounts frozen without notice at any time.

OH, I see you meant before a judgment, never mind.

Exactly.

They're also taking their sweet time to serve me (or maybe it is that I am hard to serve... primary workplace consists of 3 favorite starbucks in an urban area full of them.) Possible that they're on hold because they know I have counsel.

And yes I understand, notice of levy comes AFTER the funds are frozen. Just that my attorney told me that frozen doesn't mean lost... that it isn't too late to file at that point.

Happily, now looking like I'll be able to file before a judgment. I've read that'll also be better for the ole credit score... I might actually want to get another mortgage someday.