If you’ve defaulted on a credit card, how long can the bank wait to sue you? Believe it or not, this is a surprisingly complex question. In most lawsuits, the statute of limitations is simple. Car wreck cases have to be filed within two years. Ala. Code Sec. 6-2-38(l). So […]
Have you received a lawsuit summons from Convergence Receivables, LC? Who are they? What do they want?
Hey folks. I am Judson Crump, an Alabama consumer protection lawyer. One of my specialties is defending people who have been sued by companies they’ve never heard of. One such company is Convergence Receivables, LC.
Convergence Receivables, LC is a debt buyer. This means that they purchase old charged off accounts from banks, credit card companies, auto finance companies, or other creditors, and then try to collect them. Sometimes, you may never get a phone call, letter, or any contact whatsoever from a debt buyer, then WHAM! You get a lawsuit demanding thousands of dollars.
To make things worse, a lot of times, debt buyer lawsuits don’t even bother to explain why they think you owe them so much money. They just hope that you don’t answer the complaint and they can get a default judgment and try to garnish your wages or bank account. Or scare you into paying them.
The most important thing to remember about debt buyer lawsuits is that even if you really did owe money to someone in the past, that doesn’t automatically mean that any collector who comes along can get it from you. Here’s why:
Imagine if you borrowed $100 from your friend, Will. You admit that you owe Will $100, but you can’t pay him right now because work is slow and you have 3 kids.
One day, as you are walking into work, a guy named Bubba comes up to you and says “Give me $100.” What would you say?
“Hell no, I’m not giving you $100.”
“You owe Will $100 and I paid Will $5 for your debt. So give me $100.”
“I want some proof.”
Well, that’s the problem. Anyone claiming to sue on behalf of another must prove not just that the money was owed, but that they have the right to the money.
So if you get sued by Convergence Receivables, LC, or some other debt buyer, you don’t have to file bankruptcy, and you may have a good chance at beating them in court and saving thousands.
The key is to call a lawyer with experience fighting these sorts of cases. I’ve beaten dozens of collection lawsuits.
If you live in Alabama and are facing a lawsuit or abusive collection tactics by Convergence Receivables, then call me at
If someone owes you money, you cannot wait forever to take them to court. The law places a time limit on every lawsuit. It’s called the Statute of Limitations. And the Statutes of Limitation exist for good reasons. Evidence gets lost. Memories fade. People move on with their lives. Business would […]
One of our clients was sued by CACH, LLC, a debt buyer seeking to collect $2463 on an alleged credit card owed to GE Capital Retail Bank (GECRB) for an HHGregg Credit Card. We went to trial and defeated the lawsuit at trial in the District Court of Mobile County, Alabama. […]
Default Judgment Vacated for Fraud & Misrepresentation
This case was a particularly important one, in my opinion. I’ve written before about cases where I was able to reverse a default judgment after it had been entered because the Defendant was never served with the complaint. That is by far the most common way to reverse a default. But not the only way.
My client bought a car in 2007. It had a 24% APR and she reliably made her payments for about four years. Then the car broke down and since it was sold to her “AS IS – No Warranty,” she had to pay for the repairs out of pocket. The repairs would have cost $4,000. The car wasn’t even worth that much. So she gave it back to the finance company – Credit Acceptance Corp.
Three years go by. She gets sued by Credit Acceptance – they say the balance on the loan is $11,071.61. She calls the collection lawyer to try and make payment arrangements, but they wouldn’t accept any offer she could afford.
So she didn’t answer within the 30 days allowed by Alabama law. Credit Acceptance moves for a default judgment. They knew that they were in the superior position – my client hadn’t defended herself, so they were going to get a judgment without having to really prove their case. That’s how default judgments work.
But when the judgment was entered, it was not for the $11,071 she’d been sued for, but for over $19,000! How? They had asked for interest at 24% APR beginning January 1, 2012.
But the car hadn’t even been sold at a post-repo auction until July 2013! You can’t calculate a deficiency balance until you have sold the car. It just isn’t possible.
So how did a judgment get entered that was so obviously wrong? Because Credit Acceptance had one of their employees file a false affidavit with the court. Their affidavit stated that the amount owed on New Year’s Day 2012 was $11,071.61, when in fact that was the highest amount the debt could have been in July of 2013! So that is 19 months of interest (at 24% interest!) that they had no right to claim, yet in a sworn affidavit, they were seeking. In other words, Credit Acceptance blatantly lied to the court to try to steal over $4,200 from my client.
I filed a motion to set this judgment aside, and it was granted. Even the collection lawyer, to his credit, realized that something was way off with the affidavit.
Another collection lawsuit by Midland Funding, another victory for an Alabama consumer. Back in May, my client received a lawsuit summons from Midland Funding, they claimed that he owed them $3,573 for a credit card account with GE Capital Retail Bank. My client answered the complaint pro se and hired […]