Creditwrench teaches the secrets of the debt collection industry and how to defeat their abusive practices without lawyers. We know how to win!
Wednesday, February 17, 2010
Capitol One didn't get paid.

Obviously you are not thinking about the possibility that Capital One just might be telling you the truth? The truth may be that they didn't get paid. The truth may be that the title company paid the court, not Cap1 and Cap1 may not have been paid because they weren't the true plaintiff therefore the court paid the actual judgment holder or their attorney. Attorney's most often want to get paid up to $2500 or more to take a debt collection case plus up to 25% of any money collected.

They garnish the debtor and the court pays the attorney who deducts his cut and forwards the rest to the true plaintiff who takes another whack out of the apple or keeps it all if they bought the debt which is usually the case although Cap1 usually don't sell their debts. They just assign them to TSYS or other debt collectors.

There is also the possibility that the judgment was sold to a judgment recovery company who actually collected the money and since it is now an old judgment it just might be that a judgment recovery company has purchased the judgment and is the party now collecting the new garnishments.

Please believe me when I say that those are not just empty guesses. I know exactly how these things work. First of all, Cap1 usually don't sue anybody. They hire debt collectors who sue in the name of Capital One. Cap1 is famous for having TSYS of Georgia do their collecting for them. TSYS has a subsidiary corporation known as NAN for National Attorney's Network. TSYS sends the debt over to the NAN office which is at the same address as TSYS. NAN hires an attorney to sue defendants. TSYS is the true plaintiff, not Cap1.

In the event they can't get any money they sell the judgment to a judgment recovery service for varying amounts of money, usually $10 to $20 per judgment regardless of how much the judgment is for. There is always a clause in the purchase contract that in the event of successful collection the purchaser pays a commission to the judgment owner of 50% of what is collected. It is done that way because if it were not done that way then the judgment recovery service would become a 3rd party debt collector and subject to FDCPA as well as being subject to getting hit with unauthorized practice of law and sent to prison. Since they ostensibly bought the debt they are now the owners and therefore not subject to FDCPA and if there is any court work necessary they hire attorneys to keep from getting hit with unauthorized practice of law.

So the question becomes one of how do you dig through all that rig-a-marole to get to the bottom of the dung heap? The answer is not that difficult. Go to the clerk of the court and ask to see all the paperwork in the original court case. Get copies of everything and take them home. Find out who the attorney was in the original case and check with them to see what might have gone wrong. Find out who the plaintiff really was. Check the paperwork to see if there were any affidavits presented to the court. If so check to see who notarized it and what state the notary was from. If the notary was from Georgia then you know there is a pack of rats feeding on the deal right from the start. One or more of those rats could be doing a bit of extra dipping into Cap1's till. Nothing unusual about that.

Another clue is how is it being reported on your credit reports if it still is. If Cap1 reports a zero balance and some other rat shows up trying to collect the debt then you have a start on the paper trail. Getting to the bottom of the mess and going after the culprit isn't easy but it can be done. Several of my wins in federal courts have been the direct result of TSYS and others filing false and fraudulent affidavits in various local courts. If they present a funny affidavit then that is providing false and misleading information to a consumer and actionable under FDCPA. TSYS is the easiest to catch at their dirty tricks but others can take some real investigative work.

Meanwhile, back at the county clerk's office ask to see the garnishment records and the payment records of the court on that garnishment. Tell the clerk you already paid that garnishment through the Title company and who the title company was. Tell the clerk that you are getting garnished all over again and you want to know who the garnisher is and where the money is going. If they try to tell you they can't give you that information take it to your state AG and file a complaint against the clerk of the court. All the information the county clerks have is public information and cannot be denied to the public. Find out if there was a satisfaction of judgment filed when the title company paid the judgment off.

Before you start digging go to Wal-Mart and get yourself an Olympus WS-311-M digital voice recorder and use it. Take a friend or adult family member with you as a witness. Keep a careful written record of everything that happens every step of the way. Keep those audio recordings too. When you get to the bottom of it all then start looking for your 3rd party debt collectors and learning how to make them pay you for their skulldoggery and dirty tricks.
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