[Sharli]

Yesterday my husband received a letter in the mail from Michael J. Scott PC. The letter stated that a judgment had been obtained against him for debt he allegedly owed. Essentially we were sued without ever being served; because we weren't served we never showed up for court and thus Michael J. Scott won by default. The debt in question defaulted on December 12, 2007 -- in the state of Texas that would put it passed the SOL. Thus, Michael J. Scott had no legal right to collect on the debt to begin with yet sued anyway as he knew the only way he'd ever see a dime was to obtain a judgment. We plan to have the judgment set aside, but know he will probably just shuffle the debt over to one of Cach LLC's many branches and attempt the same tactics. Is it legal for another company to sue my husband again over the same debt?

[Cada]

Collectors aren't supposed to use the legal system to get payments for debts that are beyond the SOL but from what I've read...some do anyway with the hope the consumer doesn't know their rights and/or doesn't fight back. Why don't you try filing a complaint with your State Attorney General, it couldn't hurt and it might help persuade him not to try it again if he's contacted by the state.

[Sharli]

That's a good idea and I think I will do just that. How can he sue us without us being notified?

[Cada]

Consumers call it "sewer service". It's when a collector says a consumer was served when they actually weren't. It happens all the time so collectors can obtain a default judgment. The more important point here is it's unlawful (a violation of the FDCPA), for collectors to sue over a time-barred debt, one that's beyond the SOL. Look up Texas collection laws, they probably have a similar state law.

Copied from the FDCPA:

§ 807 15 USC 1692e
§ 807. False or misleading representations
A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:
(1) The false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or any State, including the use of any badge, uniform, or facsimile thereof.
(2) The false representation of—
(A) the character, amount, or legal status of any debt; or
( any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt.

You may be able to find yourself an atty who will sue them for breaking the law. If you need a referral, please contact Bud Hibbs at assistance@budhibbs.com. Bud Hibbs is a nationally known consumer advocate located in Texas, he may be able to offer advice and the name of an atty in your area.

[Massive]

Cada, on 03 February 2012 - 12:48 PM, said:

Consumers call it "sewer service". It's when a collector says a consumer was served when they actually weren't. It happens all the time so collectors can obtain a default judgment. The more important point here is it's unlawful (a violation of the FDCPA), for collectors to sue over a time-barred debt, one that's beyond the SOL.

Yes it happens way too often and it can be hidden for years!!!

[Dunned Again]

Sharli, on 03 February 2012 - 07:42 AM, said:

That's a good idea and I think I will do just that. How can he sue us without us being notified?

Was this summary judgment filed in your county? I have heard a summary judgment may get overturned with a notorized affidavit of non service. It would be in your best interest to seek a consumer lawyer that knows the law in your area.