My wife and I have a debt owed to us by a former friend. It’s a long, sad tale, but we loaned some money to a friend and her daughter; there was a falling-out and we are no longer on speaking terms, and they have now moved (to a different state (Illinois; we are in Kentucky) and an address we don’t presently have) but we have emails from the mother, agreeing to a specific repayment plan (Actually, SHE set up the plan!). Well, we never got the first payment, which was due in July. Now the mother is basically using the Bart Simpson defense, of “no one can prove that I didn’t send the money”. Her email expresses no surprise that we haven’t received any payments, so it’s obvious she never sent it. The total amount in question is a bit over $500.
My question is this: Would a collection agency, or lawyer, be willing to track her down and demand payment on our behalf, like they would for a company? (Small Claims Court would be a big PITA, since they changed states.)
I expect I know the answer, but I am trying to think outside the box here.
Lawyers will do it but you won’t see most of the money they collect. In fact, with a debt of this size, you might end up paying the lawyer and never seeing any of the money.
I believe collection agencies buy the debts at a steep discount and keep whatever they collect. You might see what you could work out. I’ve heard of collection agencies calling people for a debt as small as $30.
Collection agencies typically buy large baskets of bad debts from companies for pennies on the dollar, on the theory that they’ll be able to collect on a few of them. Meanwhile, the company gets to write off the bad debt.
Most collection agencies won’t be interested in a single account, and if they are, they’ll probably only pay you $10 or $20 for it. Maybe even less, since it’s a non-standard debt without any kind of formal instrument.
If you really want to stick it to them, my suggestion would be suing them in small claims court in the jurisdiction where they now live. Probably isn’t worth it, though.
There is a chance, howbeit a very small chance, that you could hurdle the interstate problems by getting you case on a TV court program. Many on The Peoples Court are just the sort of thing you describe.
Yeah, we thought about that. However, this family is all about keeping up outward appearances (while doing such charming things as beating their daughter with a belt buckle so badly she wound up in CPS for 3 months) and I doubt they would agree to a TV appearance. But we’ll look into it.
I did further research into Small Claims Court - it might work, except we need an address in Illinois where we can serve them through registered mail. I have the father’s work address, but I’d much rather serve the mom.
There is a website I read about where a real lawyer will send a letter for you for a set fee. http://www.lawyersletter.com/
I’m not sure whether that would help. He is not really representing you and is not in for a cut of a settlement.
If you had asked whether it was worth pursuing or letting go, I would tell you my opinion on that, but since that’s not the question I’ll hold my tongue. [sub]::let it go::[/sub]
You can get a lawyer in various jurisdictions to write a foreboding letter for you demanding payment (i.e. this is a routine service you don’t need a special web lawyer for), and it won’t cost you a whole lot of money. A few phone calls would turn up someone willing to do it. (Obviously a lawyer in Illinois would be better). I paid one $25 to do this years ago in the case of someone who was waffling about paying money owed in connection with a traffic accident and it prompted them to pay up.
Could be that the couple that owes you the dough is in debt to a bunch of other creditors and they won’t be impressed by one more warning about debt collection and legal consequences.
It’s gone. Move on. Given the piddly amount of the debt your professional recovery options are very limited given her re-location. Another second wasted thinking this is a recoverable debt if she refuses to act honorably is a second wasted from your lives.
I’m curious - can you not sue them in Kentucky small claims, on the basis that at the time the loan was made, they were living in Kentucky, and the contract for the loan was therefore actionable in Kentucky? how does that issue work in the U.S.? Are the state courts’ jurisdiction limited to jurisdiction over the person, or does it also include jurisdiction over the contract made in the state?
If you can sue in small claims in Kentucky, and they don’t respond, would you then have a default judgment which can be enforced summarily in Illinois?
Obviously, this is not intended as legal advice - I don’t know how these issues work in the U.S., and I’m curious what the answers might be.
If you won in small claims court you wouldn’t get any money, all you’d get is a judgement that will allow you to collect. You’d still be on your own to get the money.
You’d have to find out where they work or what their bank accounts were and fill out forms to attach those.
It’s do-able but for $500.00 (Plus any court fees if the judge decides to award those)
Being in debt or owing money is nothing now, at least compared back to 30 years ago. You can’t shame someone into paying money. Most people think “Hell if the airlines, GM, Chrysler, etc, etc… can declare bankruptcy and default on debts why can’t I?” And they have a point to a degree.
If I were you I’d check out the steps you’ll need to attach wages in Illinois and see if it’s worth the bother. Forget about the bank accounts because as soon as the person gets served, they will close their bank accounts of any money you may get. Or if they were smart they would
