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I’ve taken out a loan with Beneficial in 2006 and was unable to pay them back. In 2007 they hired a law firm Eskanos and Adler and won a judgment. In the Judgment they included interest and attorney fees. In 2007 they started to garnish my wages which I did not mind since I do owe them the debt. Fast forward to Jan 26, 2010 it appears Eskanos and Adler filed for Bankruptcy and is no longer in business. I received a letter from another law firm that Beneficial had hired to take over for Eskanos and Adler. My original judgment is $10568.75 in 2007. Base upon my employer payroll records I have paid over $6,000. I assume the new balance will be around $4,568.75. But to my surprise the letter from the new law firm stated I owe the original balance + their fees of $3,000 bring my balance over $12,000. They are willing to settle for $8,000 which I told them “No”.
My questions can Beneficial and the new law firm charge me for Attorney fees even though Beneficial had charge me during the judgment in 2007? If so, can I fight it?
Dear Peter,
Thank you for your question.
Yes Eskanos and Adler (DBA Mann Bracken) has filed for bankruptcy.
When the account was recalled from Mann Bracken and placed with the new agency, Beneficial replaced the account with the original debt amount. The new agency should have sent you a validation notice, giving you 30 days to dispute ( yes even if a law suit was filed ). Contact the agency in writing via certified mail and dispute the amount they are asking for. You can supply the information from your employer records to validate your claim.
Stress in your letter you are not responsible for additional "fees", as they were already added into the prejudgment debt amount.
Good Luck
Ontrack Financial Group llc
https://www.OntrackFinancialGroup.com
1-888-686-6834
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