Re: Received Civil Complaint from District Justice office

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Posted by: 13er on 11/26/06:

In Reply to: Received Civil Complaint from District Justice office posted by: Jill on November 26, 2006 at 11:10:20:

Do your homework on Leading Edge Recovery who purchased the Gateway account. Claims Recovery System company could be a subsidiary of Leading Edge Recovery. I don't think they can garnish wages in PA but they can set you up for a judgment. There has to be information on there for you to contact them. The debt will just get higher and higher if you let it go. If you are serious about negotiating the debt, contact them and see what they say. Remember though, if you negotiate the debt and they reduce it, the amount they "forgive" on the debt will be reported by the to the IRS and it will be considered taxable income for you in the year forgiven. Right now it is still somewhat of a low amount and if they reduce the debt in half, that is not too much to worry about on your taxes. It is to your best interests to look into this now before it really gets out of hand and can come back at a later time and bite you hard.

Best of luck to you.


: I just received a certified letter in the mail today from "Claims Recovery Systems" about a Gateway account that I had in 2003. I know all about this account but I have no idea who "Claims Recovery Systems is. The last I had heard anything on this account was on April 21, 2006 and that was a letter from Leading Edge Recovery who said that this account was purchased by Worldwide Asset and that they were collecting for them. Can this, Claims Recovery Systems who according to the complaint now owns this account just buy this account and take me straight into court without even telling me who they are or trying to do a good faith settlement? Is this Legal under the Fair Debt Collection Act to purchase a account then not send the debtor anything not even a phone call and take them straight into court? Thanks Jill PS I'm in PA and the Debt is for $2,667.37 It was $1,400.00 but they added all their fees.


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