Lawsuit Loan Seattle

Lawsuit on a payday loan?

Question: I took out a payday loan 3 years ago, and shortly after I got laid off and was unable to pay. I recently contacted the collection agency about a month ago because, I wanted to resolve the debt. I was trying to settle for less, and they were unwilling to negotiate. I talked to them a couple of weeks later and had agreed to pay them when I got my taxes back. Yesterday my parents told me that someone came to serve me papers. I was really surprised since I had just talked to them about paying them when I got my taxes back, and they have said nothing to me about paying or they were going to sue me. If I would have known they were going to sue me I would have borrowed the money from somebody until my taxes came. They left a card, and I e-mailed them today. The original amount was $225, and they were trying to say that they filed a lawsuit and as of today I owe $658. I called her out on it and told her that my original contract stated that court costs and attorney fees could not exceed the original loan amount. She then wrote back and said that although they don't normally do this, because of my special circumstances they would be willing to seattle with me, I just needed to sign a waiver of service, and send then a pay stub. I wrote back after reading things online and told her I didn't have a job, and to e-mail me the waiver of service and I would fax it to her. After reading the waiver of service I was confused because I took our conversation as we were going to settle out of court, but the waiver didn't really make it sound like that. I wrote that to her and she wrote "We are required to let the Court know what we are doing. We don’t have the authority to make those decisions with out the Court being notified. I’m sorry if that wasn’t clear. The Court has full authority." I asked her again if this meant we were or weren't going to seattle out of court. She hasn't wrote me back, the office is closed by now and wont be open again until monday. I'm not sure what to do at this point. What are my rights? What are they trying to do? And is what she said true? I'm afraid to go to work next week in fear and embarassment that they will serve me at work. I fully intend on paying them, I just want to know if were going to be able to seattle out of court.




Answer: You have the right to pay them what they ask or lose in court.

I thought we were going to settle out of court, but they want me to sign a waiver of service...?

Question: I took out a payday loan 3 years ago, and shortly after I got laid off and was unable to pay. I recently contacted the collection agency about a month ago because, I wanted to resolve the debt. I was trying to settle for less, and they were unwilling to negotiate. I talked to them a couple of weeks later and had agreed to pay them when I got my taxes back. Yesterday my parents told me that someone came to serve me papers. I was really surprised since I had just talked to them about paying them when I got my taxes back, and they have said nothing to me about paying or they were going to sue me. If I would have known they were going to sue me I would have borrowed the money from somebody until my taxes came. They left a card, and I e-mailed them today. The original amount was $225, and they were trying to say that they filed a lawsuit and as of today I owe $658. I called her out on it and told her that my original contract stated that court costs and attorney fees could not exceed the original loan amount. She then wrote back and said that although they don't normally do this, because of my special circumstances they would be willing to seattle with me, I just needed to sign a waiver of service, and send then a pay stub. I wrote back after reading things online and told her I didn't have a job, and to e-mail me the waiver of service and I would fax it to her. After reading the waiver of service I was confused because I took our conversation as we were going to settle out of court, but the waiver didn't really make it sound like that. I wrote that to her and she wrote "We are required to let the Court know what we are doing. We don’t have the authority to make those decisions with out the Court being notified. I’m sorry if that wasn’t clear. The Court has full authority." I asked her again if this meant we were or weren't going to seattle out of court. She hasn't wrote me back, the office is closed by now and wont be open again until monday. I'm not sure what to do at this point. Do you think they are going to settle with me out of court, or are they trying to trick me? Should I sign the waiver of service? If I sign the waiver of service and we do settle out of court is it going to show up on my credit that I had a lawsuit? Thank you for all your answers, and help. I have the money, I just want to keep it out of court. I'm more worried about ruining my credit. At this point it wasn't hurting it too much and I still had a decent score because it was so old and for such a small amount, but I'm afraid having a judgement on there will destroy it.




Answer: If you've already negotiated a settlement, then I would question why the agency wants you to sign a waiver of service. If you reach a settlement agreement, then all the collection agency needs to do, for purposes of "notifying the court," is to file a notice of dismissal. If the collection agency wants you to sign a waiver of service, then it's because the collection agency wants to either proceed with a lawsuit, or have an extra bargaining chip over your head for settlement purposes. There's really no other reason for a waiver of service, unless the agency intends to sue. So, clarify this with the representative. If you definitely want to settle, then call the representative, and tell them to send you a settlement offer form, not a waiver of service. BTW, if you indeed reach a settlement, then be absolutely sure that your settlement agreement clearly states that it is in FULL SATISFACTION for all obligations. Also BTW, once a lawsuit is filed, it is public record. Also BTW, the court does not need a pay stub. Sending a pay stub simply gives the collection agency the information they need to garnish your wages.