Consumer complaint received 2017-06-07
Company: Hirshberg Acceptance Corporation
State: MI
Product: Debt collection
Sub-product: Credit card debt
Issue: Took or threatened to take negative or legal action
Sub-issue: Sued you without properly notifying you of lawsuit

Complaint:
I was contacted in XX/XX/XXXX, via U.S. mail, by Hirshberg Acceptance of XXXX, MI ( a debt buyer ) that they had acquired my XXXX XXXX credit card account claiming a balance of {$2000.00}. In XX/XX/XXXX they wrote me again, this time offering a " settlement. '' OnXX/XX/XXXX, I sent them a letter via U.S. mail wishing to resolve the obligation. I informed them that the amount due was {$1000.00} and with my current family financial distress would only be able to pay $ XXXX/month.
Hirshberg worte back on XX/XX/XXXX and agreed to the offer to make payments on the {$1000.00} balance but at $ XXXX/month.
I started to write Hirshberg and explain I could only make $ XXXX/month at this time with the expectation to increase to $ XXXX/month when my finances improved. However, on the same day ( XX/XX/XXXX ), I received a letter from XXXX XXXX XXXX XXXX attempting to collect the same debt. I promptly wrote XXXX a letter via U.S. mail requesting they provide documentation that they owned the debt as another company was attempting to collect the same debt. I also wrote Hirshberg via U.S. mail requesting documentation that they owned the debt as another company was attempting to collect the same debt. I never heard back from XXXX. Hirshberg requested the name of the other company ( I did not provide ) and sent me documentation on XX/XX/XXXXXX/XX/XXXX that they owned the debt. They provided copies of their purchase agreements along with a XXXX copy of a spreadsheet listing my information for the debt. However, in an effort to show me the column headers they taped my information OVER TOP OF ANOTHER PERSON 'S INFORMATION NAME, ADDRESS, PHONE NUMBER, DEBT INFORMATION AND SOCIAL SECURITY NUMBER. ( I still have this information ).
I received no further communication from Hirshberg until my bank account was garnished in XX/XX/XXXX. I immediately contacted the court and found out that they had won a judgment from me in the amount of {$2200.00} ( up from {$2000.00} ). I had never been served or summoned that they had filed a court date. I immediately filed an objection to the garnishment and received a court date. In the time before the court appearance, they removed two withdrawals from my bank account in the amount of {$330.00} and {$340.00}. In court, I was able to stop the garnishment, but the judge would not lower the awarded amount of {$2200.00} even though I explained Hirshberg had originally agreed to accept {$1000.00} and that I was not served or notified of a court appearance. However, in the courtroom, it was agreed by all parties that Hirshberg would accept $ XXXX/month payments beginning XX/XX/XXXXuntil paid in full.
From the paperwork I received as part of the garnishment, it stated the amount of the unsatisfied judgment was {$2200.00} which included interest and court costs. There was no mention on the judgment that there would be interest ( daily ) charged AFTER and continuing until the balance was paid.
I ended up paying {$3200.00} with the interest they charged for a judgment they received in the amount of {$2200.00} - over {$1000.00} in interest. ( Ironically, the amount of the original debt ... {$1000.00} ). Pretty good profit on a debt that they paid pennies on the dollar for ...
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{$330.00} - XXXX Garnishment {$340.00} - XXXX Garnishment {$50.00} - XXXX 2 payments @ $ XXXX/month {$300.00} - XXXX 12 payments @ $ XXXX/month {$300.00} - XXXX 12 payments @ $ XXXX/month {$300.00} - XXXX 12 payments @ $ XXXX/month {$300.00} - XXXX 12 payments @ $ XXXX/month {$300.00} - XXXX 12 payments @ $ XXXX/month {$300.00} - XXXX 12 payments @ $ XXXX/month {$300.00} - XXXX 12 payments @ $ XXXX/month {$170.00} - XXXX 7 payments @ $ XXXX/month {$250.00} - XXXX 5 payments @ $ XXXX/month I was never able to find out if they were entitled to collect interest AFTER the judgment. ( It was stated in the paperwork that they were entitled to interest and court costs at the judgment they received for {$2200.00}. ) Unfortunately, you really need legal representation to fight these debt collection companies but find that it is usually hard to afford. I found that is was impossible and pointless to represent yourself in court.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation