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Debt Collection Agency Put Hold My Business Checking Account for a non-business related debt.


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I am in New York.  Two days ago I discovered a hold on a portion on funds in my Chase Business Checking account.  That same day I received a letter from Chase

advising me that they received a judgement filed/dated July 2018.  I called the agency and it was from anesthesiologist charge from 2013.  

I was never served, even though there is an accompanying affidavit of service (I was able to get both docs from the court via email).  That affidavit is a joke, as

has a description of me that is hideously off -- even my skin and hair color although I like that they also made me twenty years younger lol. I am not trying to get out of paying but I would like to work out a payment plan. A few questions :

1) Are they allowed to freeze my Business Account for non business related debt?  

2)I am in private practice (psychologist).  My bank, Chase, will not allow me to  deposit credit card payments (they are actually virtual credit card payments received from one of the insurance companies until switch to direct deposit is completed) .  I was under the impression that deposits are permitted and only withdrawals (beyond the amount available)would be a problem.  A bit confusing.  (Also, virtual credit card payments are really more like debit/cash card payments , so there would be no issue regarding enough  funds available in the acct to cover, for example, if the "card" or deposit was  "bad" or could not be collected for some reason.  I have deposited many virtual card payments in the past.

3) I  retained a lawyer -- only to vacate judgement and perhaps see if a payment plan could be worked out.

I would appreciate thoughts re questions above, if possible, and any other advice , recommendations anyone can share.

 

Many thanks in advance!

 

P.S.  My credit has been good for some time now.  I really hope this does not show up.!  Haven't checked yet..

 

 

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Your lawyer should not only have the judgment vacated but file a countersuit against the CA and Chase for damages. Making a "settlement" is an admission of responsibility. Get a better lawyer.

 

Aside from everything else, if they filed suit against you for a medical debt from 9 years ago it would have been invalid as the SOL (statute of limitations) is at MOST 4 years.

Edited by Why Chat
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Thank you  for the speedy and enlightening response!

 

My understanding of the SOL for medical debt in NY is that it recently went from 6  to 3 yrs; however,

it was signed in around 2020/21, and not retroactive.  Many websites still show the 6 years for NY, but they are incorrect. When I first spoke to this lawyer, he insisted that SOL was 6 years , I disagreed (he didn't like that) but it didn't matter because I knew it wasn't going to apply anyway. The judgement was dated 2018, which is when they say they served me.  I am really so disappointed with Chase. I am sitting with a stack of virtual credit card payments - I received from an insurance company

 (soon to be on direct deposit)  but the  virtual  terminal through which I deposit these payments into my Chase Business account is off limits  - until hold is lifted.  I probably have close to $1 - 2K which I cannot deposit right now and I can only hope they don't expire. I spoke to the rep in Chase's Liens /Judgements Dept about this.  Its really in poor form - to say the least.

Also, they charged me $100 "legal processing" fee.  It's almost as if they are collaborating with collection agency.  The whole thing stinks.  I did have surgery in 2013 and to my surprise, anesthesiology was  separate chargeI would have been willing to work out a payment plan, perhaps over 6-12 months, but was hoping to lower the total due as well.  Honestly, I like your idea a lot better.  So stressful -not having the ability to deposit these VCC's!

 

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Just to correct misinformation from an earlier post...settlement is NEVER an admission of either liability or responsibility for the underlying claim.  Respondents and even Plaintiffs settle cases in matters ALL ACROSS the nation every single day simply because sometimes it is cheaper than continuing the litigation and it closes the matter. 

 

Beyond that, I will refrain from any other comment given that OP is presently represented by counsel and THAT is where questions should be directed.

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Thank you  for the speedy and enlightening response!

 

My understanding of the SOL for medical debt in NY is that it recently went from 6  to 3 yrs; however,

it was signed in around 2020/21, and not retroactive.  Many websites still show the 6 years for NY, but they are incorrect. When I first spoke to this lawyer, he insisted that SOL was 6 years , I disagreed (he didn't like that) but it didn't matter because I knew it wasn't going to apply anyway. The judgement was dated 2018, which is when they say they served me.  I am really so disappointed with Chase. I am sitting with a stack of virtual credit card payments - I received from an insurance company

 (soon to be on direct deposit)  but the  virtual  terminal through which I deposit these payments into my Chase Business account is off limits  - until hold is lifted.  I probably have close to $1 - 2K which I cannot deposit right now and I can only hope they don't expire. I spoke to the rep in Chase's Liens /Judgements Dept about this.  Its really in poor form - to say the least.

Also, they charged me $100 "legal processing" fee.  It's almost as if they are collaborating with collection agency.  The whole thing stinks.  I did have surgery in 2013 and to my surprise, anesthesiology was  separate chargeI would have been willing to work out a payment plan, perhaps over 6-12 months, but was hoping to lower the total due as well.  Honestly, I like your idea a lot better.  So stressful -

 

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With all due respect, we are all adults here.  Hopefully, most members do not blindly follow anyone's advice or opinions, CB administrators or lawyers included.  I  appreciate, that , for the most part, individuals who are not represented by counsel receive guidance here --and sometimes that includes encouraging them to hire a lawyer, if at all possible.  Because I run a private practice, I don't have time to write the letters and follow the step by step instructions so generously provided here.  As it turns out, Why Chat's post showed me another way of thinking about this matter, which had not occurred to me. I will leave it at that - at least for now.

 

 I hired the lawyer on recommendation of a friend "in the business", as they say, and it was done in haste.  I don't think he wanted the case (not big enough $$$), and had I not viewed the situation as straight forward (mistakenly, I now know) I would have moved on and looked elsewhere.  In fact, the lawyer's initial recommendation was to work it out with the collector (which, of course, is not always a bad thing) but I had already told him that I tried to do so , and the CA adamantly refused. 

 

I respect and appreciate all comments here. 

 

 

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On April 3, 2020, New York State Governor Andrew Cuomo signed New York's 2021 Executive Budget into law. The Executive Budget added § 213-d to New York's Civil Practice Law and Rules to reduce the statute of limitations for bringing an action to recover a medical debt from six (6) to three (3) years.

 

It was six years when the judgment was issued, so it is valid. 

Edited by legaleagle2012
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  • 1 month later...

Look up "traverse hearing" for NY. There may be a time limit on filing, but generally subject matter jurisdiction can be invoked at any time in the proceedings. If you were not properly served, the court does not have jurisdiction. Judgments issued without jurisdiction are invalid.

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