Wolpoff+Palisades+Great Senneca=Mortgage Hell

KidSquid · 08-17-2007, 02:51 PM

Hello All -

Looking for some help in trying to clear a matter up.

I am currently in the process of purchasing a home...have immaculate credit and was suprised by a call from my mortgage banker.

He informed me that he was suprised to see a civil judgment on my credit report. I was shocked. After doing some research this is what I have found out, plus some facts about the situtation:

1. The original account Wolpoff/Palisades/Great Seneca are trying to collect for is a Discover Card account that was originally opened by me, and then stolen during an identity theft. I reported the incident to Discover and provided them with affadavidts of identity theft.

2. Palisades has now listed themselves as a creditor on my credit report and indicates a large past due balence and no payments.

3. I am an idiot....I was served by someone claiming to be a "sheriffs deputy" (was a private process server) and was "ordered" to sign a summons....since it referenced Discover card....like an idiot I made a mental decision to ignore it.

4. Wolpoff got a default judgement since I did not show up, and it is now making what should be an easy mortgage process HELL!

5. I live in Texas

6.The judgement was for a total of ~ 5000.00 + Prejudgement Intrest of ~ 100.00 + Costs of 75.00 + Post Judgement Interest of 7.25%

7. It looks like the judgement was issued on 01/06.

So the questions are:

- What can I do to begin to clear up the bone headed mistake I made by ignoring the summons?

- How do I clear up the default judgement?

Any help/suggestions would be greatly appreciated!

Squid

jlynn · 08-17-2007, 02:55 PM

1st thing 1st go to the courthouse that has the case, and get copies of all the paperwork. You need to know who sued you in the first place. Was it Palisades, or was it Discover and now Palisades is collecting the judgment.

KidSquid · 08-17-2007, 02:58 PM

I have a copy of the judgment....

It's listed as:

Great Seneca Financial Corporation/Assignee of Discover Bank

hannah · 08-17-2007, 03:03 PM

When was the DOLA on the Discover account? What was the exact date you were sued?

jlynn · 08-17-2007, 03:09 PM

Anybody here aware of TX rules on vacating a judgment - especially since it appears he was served?

jlynn · 08-17-2007, 03:10 PM

Quote:

Originally Posted by hannah

When was the DOLA on the Discover account? What was the exact date you were sued?

DOLA isn't the issue - it was fraudulent charges. He says he filed the necessary affidavits. Do you have any statements from them afterwards, showing the charges removed?

KidSquid · 08-17-2007, 03:12 PM

I take it DOLA is Date of Last Activity? If it is...I do not know...I assume it was 2004/2005

The judment date is 01/19/06

jlynn · 08-17-2007, 03:26 PM

Quote:

Originally Posted by KidSquid

I take it DOLA is Date of Last Activity? If it is...I do not know...I assume it was 2004/2005

The judment date is 01/19/06

Yes - on the DOLA. If Discover is reporting on your credit reports, you can probably find that there. I assume they closed that account and reopened a new one for you?
You should get all 3 reports and see if they have a TL that is reported lost or stolen.
Time to get all your ducks in a row. I hope you aren't at the point that you are trying to close on a house, but are just beginning the process. This is not going to be an overnight resolution.

centex · 08-17-2007, 03:29 PM

Quote:

Originally Posted by jlynn

Anybody here aware of TX rules on vacating a judgment - especially since it appears he was served?

At more than a year and a half beyond judgment, that puppy is basically etched in stone. He might be able to get a hearing on the motion to vacate, but there is no basis upon which the order to vacate could be granted, especially in light of the admission of proper service.

And, since this was in Texas, it was probably at least at the County Court level since most of these things are not filed in JP courts. If it was one of those rarities that got filed in a JP court, he *might* be able to get a trial de novo at the County Court, but he would be expected to post an appeal bond of probably twice the judgment amount.

The low pre-judgment interest amount tells me that they filed suit almost as soon as it was in their hands.

I'll double-check TRAP just to be certain, but the appellate opinions have often discussed the failure of a party to act in a timely fashion as the basis to toss out the appeal (some generic decisions have been posted by me over the past several months in this forum).

KidSquid · 08-17-2007, 03:42 PM

It was filed in a JP court....

Centex - Please check your PM....I would like to talk to you about possibly representing me.

Thanks,

Squid

hannah · 08-17-2007, 03:45 PM

Quote:

Originally Posted by jlynn

DOLA isn't the issue - it was fraudulent charges. He says he filed the necessary affidavits. Do you have any statements from them afterwards, showing the charges removed?

He needs to vacate the judgment. In Texas there are several ways. One is to appeal within 6 months of notice of default which he did not do and cannot do now.

Another is where a default judgment against defendant was reversed where there was no court reporter present at the hearing on the default, no transcript of the hearing, and no statement of facts for the appeal. Fisher v. First SEC. State Bank, 576 S.W.2d 886, 1979 Tex. App. LEXIS 3130 (Tex. Civ. App. Waco 1979). The OP might be able to file suit to vacate based on not being able to appeal because none of the above exists. He will have to find out if he has grounds to do so.

If this were me, I'd call the TX AG and talk to an attorney there to see if stolen credit card charges are part of the AG's purview. The AG might be able to help him.

Yes the OP here did something stupid by not answering and defending the suit but simply because he filed the necessary affidavits earlier, he cannot get out of a legal judgment by saying, "Oh, but I filed affidavits!" It must go through a court of law. Before the judgment was granted in 06 would have been the right time to say so but now there is a legal judgment against him which he must vacate.

spinn · 08-17-2007, 08:24 PM

Have you filed a police report?

If you have the CRAs must block the reporting of the account that is the result of identity theft within four days of their receipt of the police report and affidavit from you stating this account is not yours.

The judgment will still be out there but this will get it off of your reports and allow you to close on your house.....by the end of next week.

jlynn · 08-17-2007, 10:13 PM

Quote:

Originally Posted by spinn

The judgment will still be out there but this will get it off of your reports and allow you to close on your house.....by the end of next week.

With a diligent mortgage broker, a public record is searched for without a credit report. They know its out there now - so a deletion may not get him anything.

spinn · 08-17-2007, 11:02 PM

Quote:

Originally Posted by jlynn

With a diligent mortgage broker, a public record is searched for without a credit report. They know its out there now - so a deletion may not get him anything.

Agreed Jlynn...but I would also send the same information to Wolpoff. They cannot collect on an account that is the result of identity theft....even if the account has a judgment.

PR posted the relevant law in one of my threads a few weeks ago.

spinn · 08-17-2007, 11:06 PM

http://www.infinitecredit.com/forums...html#post44036

FCRA 615

(f) Prohibition on Sale or Transfer of Debt Caused by Identity Theft

(1) In general. No person shall sell, transfer for consideration, or place for collection
a debt that such person has been notified under section 605B has resulted from
identity theft.

(2) Applicability. The prohibitions of this subsection shall apply to all persons
collecting a debt described in paragraph (1) after the date of a notification under
paragraph (1).

I realize that is for the sale of a debt but I cannot find the part that says they cannot collect on it either...I am bad at that.

hannah · 08-17-2007, 11:15 PM

Quote:

Originally Posted by spinn

http://www.infinitecredit.com/forums...html#post44036

FCRA 615

(f) Prohibition on Sale or Transfer of Debt Caused by Identity Theft

(1) In general. No person shall sell, transfer for consideration, or place for collection
a debt that such person has been notified under section 605B has resulted from
identity theft.

(2) Applicability. The prohibitions of this subsection shall apply to all persons
collecting a debt described in paragraph (1) after the date of a notification under
paragraph (1).

I realize that is for the sale of a debt but I cannot find the part that says they cannot collect on it either...I am bad at that.

Sure you can...you just posted it.

Pale Rider · 08-17-2007, 11:28 PM

So what amount of damages would this generate against Discover? They were properly notified of the ID theft, and assigned it for collection, which resulted in a default judgment. When did that section go into effect? I would check that to see if there is a COA. Start looking for violations that are are not SOL so that you can minimize the damage, or make a case for vacating the judgment.