Being Chased For Old Debt

[Isee]

Wife has received a couple of letters from a thai law firm demanding payment for a loan which she entered into with her then employer back in 2004. The loan amount was for 15K baht and was evidenced in writing. This loan was “purchased” from the employer by what I think is this law firm. Putting aside discussion as to why it wasn’t paid, they claim they have the loan agreement but when asked to provide a copy, they have refused to send a copy out (after first saying yes if she sends a copy of her ID and a letter requesting a copy) but now say they can't but she can come look at it in BKK (which isn’t an option at present). Amount they want is 23,050 baht but haven’t set out how they have calculated that amount.

They claim they have now sent everything to the Court but are still happy to discuss a payout which has been offered at 20K baht.

Not knowing how things work in the thai legal system, my questions are:

1. Do they have to go to court where she lives or can they do it in BKK?

2. Will she receive the court documents to defend it ie; prove they have served her before they can get a judgement in her absence?

3. Will any court documents include the loan agreement?

4. If they get a judgement, will this be recorded on her credit rating?

5. Anyone know what sort of time frames are involved and the steps?

6. What sort of court costs could they potential get – fixed costs from the court?

Something about this tells me they are trying it on because I cannot understand the attitude of refusing to provide a copy of the loan agreement if they are 100% legit. They will have to produce it to the court, so what is the secret? I’m guessing either no copy of the loan agreement or maybe some time limit has passed where they can’t enforce through the courts (Statute of Limitations equivalent?). While she might pay something for this to simply go away, 20K is a bit much for a try on. I suggested she offer 10K but they seem set on 20K. If they have bought this debt (which I presume can be done), I would guess they did so for around 5 - 7.5K baht so 10K seems a reasonable compromise.

Anyone dealt with this sort of situation before?

[jacktrip]

If there was a loan agreement, then they probably have a copy. To assume they are bluffing because they wont send it to you is not erally reasonable. A law firm probably wont send docs to you if dont have them, they could potentially fuel a defense and boost your case if you lost your copy.

Therefore, you need expect to lose in court if you dont have a legit defense. Are you in Thailand, I'm not sure what the particulars of serving someone for court are here. You may want to check on the process of service. You could lose the case by default (not showing up).

[coolhandjoe]

Laws are different all over the world.

Have no correspondence with them and go off their radar, they'll soon get fed up chasing the debt and sell it on again to another company then the process starts again and again. Just get used to ignoring them.

[transam]

How much of the 15K loan was payed back within the agreement time ? Remember we are talking 8 years interest on any unpaid amount.

[bino]

Since they are not the original lienholder, I'd tell them to fck off until they can prove that they "bought the paper" and are truly entitled to collect on it.

[CharlieH]

To me its quite simple, did she or didnt she take out the loan, did she or didnt she receive the money. If she did PAY IT.

Why go through all the hassle and headaches for the sake of a debt which is valid.

Life's too short and for that amount (5k over the amount borrowed after 8 years!!!) its not worth arguing over.Clear the debt clear her name and sleep better looking forward. Life's too short.

Satisfy yourself they have the legal transfer etc and just clear it.

[meand]

If you do choose to clear it, you should offer them something very low. If anybody tells you there is something wrong with that, don't listen to them -- they probably bought your debt for next to nothing.

[HardenedSoul]

Tell 'em to whistle for it

[roamer]

If there was a loan agreement, then they probably have a copy. To assume they are bluffing because they wont send it to you is not erally reasonable. A law firm probably wont send docs to you if dont have them, they could potentially fuel a defense and boost your case if you lost your copy.

Therefore, you need expect to lose in court if you dont have a legit defense. Are you in Thailand, I'm not sure what the particulars of serving someone for court are here. You may want to check on the process of service. You could lose the case by default (not showing up).

Beg to differ. Quite a few large banks and credit card companies have run into problems when it transpired they they had not kept, or could not trace, original loan agreements but only had computer records. It is a totally reasonable request to ask for a copy of an agreement. I suspect a try on. Also a loan of this age was probably bought for less than 10% of its value. I probably would call the bluff in the absence of docs, certainly wouldn't offer more than 5K.

[barky]

Laws are different all over the world.

Have no correspondence with them and go off their radar, they'll soon get fed up chasing the debt and sell it on again to another company then the process starts again and again. Just get used to ignoring them.

I kinda agree with this. At any rate, if worse comes to worse and you end up going to court,..remember many a problem has been solved or a debt negotiated on the steps of the court on hearing day. String it out as long as you can and if they dont give up, negotiate a deal (settlement) before you go into the courtroom.

[Isee]

Thanks for the replies and opinions. I think its a try on by a dodgy two bit law firm and will recommend to her to ignore future correspondence unless its confirmed court documents.