Sued By Credigy Receivables, Inc.? Here's Help.
You have about 30 days from the day you were served to file a written response, and that's usually enough time.
Miss that deadline and Credigy can take a default judgment against you. Respond, and Credigy has to prove it actually owns the debt, which is harder than it sounds. Here's how, and how I can help.
Credigy Receivables, Inc. is a debt buyer headquartered outside Atlanta, Georgia, and since 2020 it has been wholly owned by the National Bank of Canada. So the company suing you in a California courthouse over an old credit card account is, at the top of the chain, a Canadian bank's distressed-debt operation. It buys charged-off American consumer receivables at a discount and collects on them, including through litigation.
None of that geography helps or hurts your case by itself. What matters is the same thing that always matters with a debt buyer. Credigy has to prove it owns your specific account, through every hand the account passed on its way from your original lender to a Georgia buyer owned in Montreal.
The paper problem
A defended collection case usually comes down to proof, and the first thing a debt buyer must prove is that it owns your account. That is harder than it sounds. Debt buyers purchase defaulted accounts by the portfolio, on spreadsheets, sometimes through more than one intermediate owner. The specific assignment of your account is often missing or defective — and without it, they cannot prove they own the debt.
California adds its own teeth here. A debt buyer suing in this state has to possess and plead specific documentation about your account, including the complete chain of title, meaning every company that has owned your account since the original creditor (the Fair Debt Buying Practices Act, Civil Code section 1788.50 and following). Those requirements are not self-executing, though. Somebody has to know what buttons to press and switches to flip. The whole industry is, in my view, a square peg being forced into a round hole. The square peg is the bulk collection business these companies want to run through the courts. The round hole is a court system built to decide cases one at a time, under rules of evidence, with rights on your side of the table. In a defended case, that square peg tends to get stuck.
And if part of you hesitates to fight because the debt was real once, look at what actually happened. Credigy Receivables bought your account, or claims to have bought it, for next to nothing, on a bet that nobody would make it prove anything. In my view, a company running that bet has no special claim on your guilt. You didn't choose this course. They did. Make them prove it.
Use the thirty days
From the day you're served, you generally have thirty days to file a written response with the court. If nothing gets filed, Credigy can ask for an automatic judgment against you (called a default judgment), and with a judgment they can levy your bank account, meaning they take the money directly, garnish your wages if you have a job, or put a lien on your house. Responding is what makes everything above matter, because a defended case is where the proof gets tested.
Two reads that will help. Here's how to calculate your deadline, which is more particular than people expect. And the top five mistakes people make when they get sued is five minutes well spent before you decide anything.
Let it be my problem
If you'd rather hand this off, the consultation is free, it takes fifteen minutes, and you speak with me directly. No intake screener, no telemarketer. Although the outcome can't be guaranteed, you can offload the process, so you know that whatever can be done is being done while you go about the other things in your life. It's sort of like the alarm clock by your bed. Once it's set, your brain stops holding the time, because that's taken care of. Let me take care of this.