Joint Lease Collection and Lexington Law

[kewljess]

Hi everyone!

 

I am new to CB and I absolutely love it already. I've been reading a lot but nothing seems to match my particular case so I decided to start a new topic...

I'm 23 years old and when I was 18 I moved out with my two "best friends" because one had been kicked out of her house and well I was SUCH a great friend so I decided to help her out and move with her. It ended up being a dramatic disaster where I was the only one with a job so I was paying everything! I asked them to remove me from the lease (3 people total including me on the lease). They agreed to remove me from the lease and I made the mistake of moving out prior to the removal. Once I was moved out they decided they could not afford it without me and they moved out too. So now there are two negative accounts from this lease on my report; one for $3,000+ and another for $500 with NCC Business Services.

 

The lease was opened 8/2010 and we left the apartment either 12/2010 or 1/2011. The account shows up on my credit report March, 2013.

I should mention I live in Arizona and the account was also opened in Arizona.

 

Now I have been working with Lexington Law for almost three months now and they were able to remove some smaller negative accounts from my Transunion report (Cox cable, LabCorp) and have "disputed" with all three credit bureaus. I haven't received any letters from anyone and when I ask for advice on whether I should contact NCC Business Services or not, they say that I should send a "pay for delete" letter. I have been reluctant to contact NCC Business Services because I read on one of the forums that if they have not attempted to contact I can fight them off.

 

I am wondering if I should try to solve this through the courts so that all three of us can pay off the $3000+ together and not just me by myself.

I really want to fix my credit!

Help please! Thank you in advance

Kewljess

[tmcgill]

Has the landlord or NCC added the debt to one or more of your credit reports?

 

Analyzing these facts about your situation:

 

1. The debt is still in Arizona's Statute of Limitation for written contracts (6 years).
This means you can be sued and/or your paycheck garnished.

 

2. The CA - NCC Business Services is licensed.
http://www.azdfi.gov/Consumers/Licensees/licenses.asp?list=CA&name=Collection%20Agencies
They can legally attempt collection.

 

3. Since the other tenants were on the lease, they are also legally responsible.
I would schedule a brief consult with a local attorney about the $3,000, since there were other tenants on the lease, but you moved before the lease expired. Check with the local bar association for real estate attorneys. Some will give you free minutes to review your situation at no charge, and others may have a small fee (Example: $100).

 

Pinpoint whether you are legally responsible for the full $3,000. I would do this before attempting Debt Validation or Settlement Negotiation.

Edited September 10, 2015 by tmcgill

[pwd847]

I doubt a judge would hold you fully responsible for the whole $3,000. That doesn't help your credit report at all though.

 

How do you know that the leasing company agreed to remove you from the lease?

 

How soon after you all moved out did the unit get re-rented?

 

I am not knowledgeable about AZ landlord-tenant laws BUT it is possible that they can only collect on the amount of rent due while the unit was empty.

Edited September 10, 2015 by pwd847

[tmcgill]

pwd847, I was thinking the same thing. NCC will try to go after the OP for the full amount, but I would try to determine what portion is really owed. (But, how does the move out affect that)?

[pwd847]

The move out doesn't really affect what is owed.

 

What matters is how long the apt was vacant. If it was vacant for 1 month, in Chicago, they would only be liable for 1 months rent (assuming their rent was all paid on time, up until the vacancy).

 

Again, this only applies if AZ has a provision in the law that offers those protections to tenants.

 

 

The law in Chicago states that from the time of vacancy the landlord has to make a reasonable effort to re-rent the unit and the tenants are only liable for the rent while the unit was vacant.

 

 

I'll have to look into the AZ laws when I get some time.

Edited September 10, 2015 by pwd847

[mendelssohn]

Step number 1 is to cancel Lexington Law.

 

This is a self help credit forum and trust me when I say that you can do a better job yourself.

 

Credit repair companies typically get all the low hanging fruit and unfortunately, because of how things are disputed, make it more difficult to get many items deleted later.

 

You can do a better job yourself, and if you stick around CB, there are plenty of people here to help you do it!

Edited September 10, 2015 by mendelssohn

[inoubliable]

Fire Lexington. You can do what they're doing, no need to pay them for it.

 

It works like that in VA, pw. If I move out five months before my lease is up, but the unit is rented out again after just one month of vacancy, then I'm only on the hook for that one month. OP, you should try to find out how the landlord-tenant act reads for your state. Do you have documentation from the rental management/landlord that spells out what you're being charged for?

[cashnocredit]

I doubt a judge would hold you fully responsible for the whole $3,000. That doesn't help your credit report at all though.

 

How do you know that the leasing company agreed to remove you from the lease?

 

How soon after you all moved out did the unit get re-rented?

 

I am not knowledgeable about AZ landlord-tenant laws BUT it is possible that they can only collect on the amount of rent due while the unit was empty.

 

I'm pretty sure the lease has "jointly and severally" boilerplate. Without it landlords are at a big disadvantage with multiple peeps on a lease. The best defenses on a lease would be if the apartment was subsequently rented. A landlord does have to make a good faith effort to rent out the place. At least in Calif. States may vary on this. Tenant/landlord law can be a big subject with lot's of statutes specifying obligations the landlord and tenant have.

 

Calif. limits several liability to economic damages which would include all of the rent portion. Arguably, if one of the tenants damaged the property the others would not be liable. I think AZ has no restriction on joint and several obligations.

Edited September 10, 2015 by cashnocredit

[TampaDude]

 

I doubt a judge would hold you fully responsible for the whole $3,000. That doesn't help your credit report at all though.

 

How do you know that the leasing company agreed to remove you from the lease?

 

How soon after you all moved out did the unit get re-rented?

 

I am not knowledgeable about AZ landlord-tenant laws BUT it is possible that they can only collect on the amount of rent due while the unit was empty.

 

I'm pretty sure the lease has "jointly and severally" boilerplate. Without it landlords are at a big disadvantage with multiple peeps on a lease. The best defenses on a lease would be if the apartment was subsequently rented. A landlord does have to make a good faith effort to rent out the place. At least in Calif. States may vary on this. Tenant/landlord law can be a big subject with lot's of statutes specifying obligations the landlord and tenant have.

 

Calif. limits several liability to economic damages which would include all of the rent portion. Arguably, if one of the tenants damaged the property the others would not be liable. I think AZ has no restriction on joint and several obligations.

 

 

Yeah, here in Florida, if a tenant moves out, the landlord is under no legal obligation to find another tenant. He or she can leave the property unoccupied and go after the original tenant for the full remaining balance on the lease.

 

Of course, most landlords will try to find a new tenant quickly, because that ensures much quicker resumption of cashflow than trying to sue and garnish the tenant. If the tenant is collection proof, then the landlord is screwed, anyway.

[pwd847]

It is possible that if you are the first one to be brought to court that you are held liable for the entire bill (whatever that amount may be). Then you need to sue your "friends".

[LKH]

It is possible that if you are the first one to be brought to court that you are held liable for the entire bill (whatever that amount may be). Then you need to sue your "friends".

I don't think so. Each should be equally liable. And pwd is correct. A landlord is required to make reasonable efforts to rent the apartment after a lease is broken. A tenant will be liable for

the amount of unpaid lease up to the point that the dwelling was re-rented.

 

Do you know for a fact that the collectors are not trying to collect from your ex-roommates?

Finally, where in AZ are you? I may be able to refer you to an atty, depending on where you are,

[cashnocredit]

 

It is possible that if you are the first one to be brought to court that you are held liable for the entire bill (whatever that amount may be). Then you need to sue your "friends".

I don't think so. Each should be equally liable. And pwd is correct. A landlord is required to make reasonable efforts to rent the apartment after a lease is broken. A tenant will be liable for

the amount of unpaid lease up to the point that the dwelling was re-rented.

 

Do you know for a fact that the collectors are not trying to collect from your ex-roommates?

Finally, where in AZ are you? I may be able to refer you to an atty, depending on where you are,

 

As a landlord, I wouldn't even consider renting a place to multiple tenants without joint and several language in the lease. It's a PITA to sue one person let alone many for smaller amounts. Worse, there is often only one person worth suing if that. Renters have roommates for a reason and it usually indicates they aren't in the best shape financially.

 

EtoA: If a landlord manages to collect everything from just one person the that person can sue the others for their share.

Edited September 11, 2015 by cashnocredit

[pwd847]

lkjf;lgsd

Edited September 11, 2015 by pwd847

[pwd847]

I am not a fan of repeating what everyone already said BUT, you should talk to an attorney. Tell us what city your apartment was in or PM me so I can point you in the direction of free tenants rights groups that may be able to help as well. When I say, "may be able to help", I mean they will give you the information you need to act accordingly. They aren't going to do the work for you.

 

 

 

So now there are two negative accounts from this lease on my report; one for $3,000+ and another for $500 with NCC Business Services.

Why are there 2 accounts reporting? What exactly is the $3,000+ for and what exactly is the $500 for?

How much was your rent per month?

How much was your security deposit? (This is applied towards unpaid rent)

What exact day did the last person move out of the apartment?

What was the exact day of the end of the lease (supposed to be)?

Did you notify the landlord that your party was moving out or did you abandon the unit?

I can help with landlord-tenant issues and help figure out what is actually owed (see my signature). As far as disputing the TL, others will have to jump in on that.

What about this comment you made about the landlord was supposed to remove you from the lease? Was this all verbal? If so then you basically should never mention it again because verbal is worthless.

 

It is possible that if you are the first one to be brought to court that you are held liable for the entire bill (whatever that amount may be). Then you need to sue your "friends".

I don't think so. Each should be equally liable. And pwd is correct. A landlord is required to make reasonable efforts to rent the apartment after a lease is broken. A tenant will be liable for

the amount of unpaid lease up to the point that the dwelling was re-rented.

 

Do you know for a fact that the collectors are not trying to collect from your ex-roommates?

Finally, where in AZ are you? I may be able to refer you to an atty, depending on where you are,

 

After thinking about this a little more, I am pretty sure this is correct. Unless you get all your roommates into court with you. Then the judge may split up the amounts, or he may not. He may just put a judgment on all 3 of you saying you all owe $3,000 period and figure it out between yourselves.

 

 

So let's focus on the here and now. You haven't been served a court summons. We need to figure out what you actually owe because that information can be used to dispute the TL's.

Edited September 11, 2015 by pwd847

[AKAGeorgiaGirl]

There is also the issue of damages. Since you moved out early you do not know what condition the apartment was left in. And in my experience - when people are defaulting on a lease agreement, they are likely to not pay the last month's rent AND leave it dirty, damaged. (I worked for an apartment rental company once upon a time, though I know nothing about AZ.)

 

The complex probably was required to send notice of final damages/bill in writing - but if no forwarding address was left then it could end up who knows where? Or to the roommates, who may not have wanted to admit to you they failed you.

[cashnocredit]

There's a great similarity between people that cosign loans, and multiple people on a lease. They often end badly and break up friendships. Avoid them like the plague.

[kewljess]

 

It is possible that if you are the first one to be brought to court that you are held liable for the entire bill (whatever that amount may be). Then you need to sue your "friends".

I don't think so. Each should be equally liable. And pwd is correct. A landlord is required to make reasonable efforts to rent the apartment after a lease is broken. A tenant will be liable for

the amount of unpaid lease up to the point that the dwelling was re-rented.

 

Do you know for a fact that the collectors are not trying to collect from your ex-roommates?

Finally, where in AZ are you? I may be able to refer you to an atty, depending on where you are,

 

 

 

 

Thank you for your response!! I live in Avondale-Litchfield area. The complex was in Litchfield Park, AZ.

I have no idea if they're trying to collect from my ex-roommates or not, since I don't maintain communication with them at all. I've tried to reach out but have gotten no response from either of them. The last day they were there was around December 28, 2010 (when I had the electricity/water shut off, since I was the only one paying that)

 

I believe that was the last day they were there and our lease was not up until August 2011, I believe. Rent was $1,200 and I was paying that all on my own for the few months we were there, which is partly why I wanted out. So, all in all, I don't think they are asking for too much considering how irresponsible our entire move was.

[kewljess]

Step number 1 is to cancel Lexington Law.

You can do a better job yourself, and if you stick around CB, there are plenty of people here to help you do it!

Calling them as we speak!

[kewljess]

Fire Lexington. You can do what they're doing, no need to pay them for it.

 

It works like that in VA, pw. If I move out five months before my lease is up, but the unit is rented out again after just one month of vacancy, then I'm only on the hook for that one month. OP, you should try to find out how the landlord-tenant act reads for your state. Do you have documentation from the rental management/landlord that spells out what you're being charged for?

 

 

No documentation at all from them... I should have kept a copy of the lease but I didn't. Just fired Lexington!

[kewljess]

I am not a fan of repeating what everyone already said BUT, you should talk to an attorney. Tell us what city your apartment was in or PM me so I can point you in the direction of free tenants rights groups that may be able to help as well. When I say, "may be able to help", I mean they will give you the information you need to act accordingly. They aren't going to do the work for you.

 

 

 

So now there are two negative accounts from this lease on my report; one for $3,000+ and another for $500 with NCC Business Services.

Why are there 2 accounts reporting? What exactly is the $3,000+ for and what exactly is the $500 for?

How much was your rent per month?

How much was your security deposit? (This is applied towards unpaid rent)

What exact day did the last person move out of the apartment?

What was the exact day of the end of the lease (supposed to be)?

Did you notify the landlord that your party was moving out or did you abandon the unit?

 

I can help with landlord-tenant issues and help figure out what is actually owed (see my signature). As far as disputing the TL, others will have to jump in on that.

 

 

What about this comment you made about the landlord was supposed to remove you from the lease? Was this all verbal? If so then you basically should never mention it again because verbal is worthless.

 

 

I live in Avondale-Goodyear area and the apartment was Litchfield Park, AZ

-I don't know what the amounts are for..

-Rent was about: $1,200

-I have no memory of the amount for the security deposit.

-I believe the last day "they" moved out was when I shut off their elec/water services around 12/28/2010

-The contract was for one full year which would make the lease end date: 08/2011

-I did notify them that I was leaving and wanted out of the lease, they said to just have my two other roommates sign me off the lease. I left, then the roommates left. I'm sure they didn't notify.

- No, my landlords explicitly gave me directions on how to remove me off the lease and that required both of the other people on the lease to sign a form. (but they never did)

 

Edited September 22, 2015 by kewljess

[pwd847]

-I did notify them that I was leaving and wanted out of the lease, they said to just have my two other roommates sign me off the lease. I left, then the roommates left. I'm sure they didn't notify.

- No, my landlords explicitly gave me directions on how to remove me off the lease and that required both of the other people on the lease to sign a form. (but they never did)

I have never even heard of this before! That sounds whack to me. I would be surprised if that is even a real thing.

 

Click on the link in my signature and order your free annual rental reports (plural) ASAP. Are you planning to move anytime soon? Entries on those reports may prevent you from doing so.

[cashnocredit]

 

-I did notify them that I was leaving and wanted out of the lease, they said to just have my two other roommates sign me off the lease. I left, then the roommates left. I'm sure they didn't notify.

- No, my landlords explicitly gave me directions on how to remove me off the lease and that required both of the other people on the lease to sign a form. (but they never did)

I have never even heard of this before! That sounds whack to me. I would be surprised if that is even a real thing.

 

Click on the link in my signature and order your free annual rental reports (plural) ASAP. Are you planning to move anytime soon? Entries on those reports may prevent you from doing so.

 

 

If a landlord was willing to let someone off a multi-tenant lease that would be the best way to do it. Essentially it's a written alteration of the original lease signed by the parties involved. Quite legal and rather generous that the landlord would be willing to do it. It does require the landlord sign the modification as well.

Edited September 23, 2015 by cashnocredit

[pwd847]

 

 

-I did notify them that I was leaving and wanted out of the lease, they said to just have my two other roommates sign me off the lease. I left, then the roommates left. I'm sure they didn't notify.

- No, my landlords explicitly gave me directions on how to remove me off the lease and that required both of the other people on the lease to sign a form. (but they never did)

I have never even heard of this before! That sounds whack to me. I would be surprised if that is even a real thing.

 

Click on the link in my signature and order your free annual rental reports (plural) ASAP. Are you planning to move anytime soon? Entries on those reports may prevent you from doing so.

 

 

If a landlord was willing to let someone off a multi-tenant lease that would be the best way to do it. Essentially it's a written alteration of the original lease signed by the parties involved. Quite legal and rather generous that the landlord would be willing to do it. It does require the landlord sign the modification as well.

 

Yes and the lack of landlord signature is what confused me. Maybe there was a landlord signature and the OP never mentioned it.