Employee Clawback Leading to Suit?
So have run into a bit of a tricky situation. Was informed by a family member that a process server showed up to their place today to drop off a document; was asking for me but I've since relocated. Fortunately, a member of my family was able to spot that this is probably related to a collections effort. Given the Company in question that the collections is from, the only thing that comes to mind is a bonus clawback from half a decade ago that I forgot about (Company might've followed up once after my departure from the firm but due to relocation, other family stuff, etc., I wasn't able to respond - no intention to keep the $$, just life). The amount is significantly larger than what I remember my bonus to be likely because they've included interest, other fees, etc.
What is the best next steps to take here given I want to above all, make sure nothing shows up on my record for future opportunities, does not impact my credit, etc., and also ideally would like the amount to get scaled back to the original?
Important to note, that I've had the same phone number and clearly they had access to my place of residence (otherwise how else would server track me) and I did not receive a call or letter in the mail once over the last few years to remind me of this. Left on good terms with the Company as well (no significant lasting relationships but performed well during the time I was there - just left for a better opportunity). Feel the best solution to nip this in the bud would be to talk to the Company directly and ask them to withdraw the suit and let me settle for the original amount but open to ideas.
Thanks!
Is it really a suit if they've just sent the claims to collections?
Well since I wasn't able to talk to the server directly, I'm not sure which Company the server was representing, but my family member thought they spotted the name of my prior Company on the envelope (or something).
It's more likely this is some random bill you forgot about. I had a $10 medical bill go to collections because they only sent me 1 notice in the mail.
Next step is of course to get in contact with the agent. Hopefully your family member got a card, contact info, etc. Verify what they are looking for (i.e. this isn't a scam) and then negotiate a settlement. You can make offers, and keep in mind these companies acquire claims for pennies so offering 20-50%, paid all upfront, is a normal settlement.
If a collections agent has shown up, the company sold the claim so they have no dog in the fight anymore and won't be able to help.
But again, I would be really shocked if this is what it's for. My guess is either a scam or unrelated to a clawback. Companies will usually make several attempts if they actually want to collect the $, and if not, they probably just wrote it off.
I agree - I thought I would be given more of a notice if it was related to a bonus clawback situation but given that my family member spotted the Company name, I'm assuming this has to be from them. The individual also mentioned he was a process server so I doubt he was just a collections agent.
Would it be right to reach out to the server directly? Wouldn't that unwittingly start case proceedings while my intention is more so to nip this in the bud? First priority is to get this removed of my record and/or not instigate into a suit anyways. Dk how that reflects in background checks for the future.
Yeah you should reach out to the server. It's better to close out whatever it is quickly before it hits your credit or anything else. There's not really "proceedings" for this type of thing - you just reach a settlement to close it out. Even if the company filed a civil suit (again, VERY unlikely) you can just agree to settle and it'll all be done.
Thank you for your reply. Going back through my prior emails again, I think the disconnect was that they kept sending notices to an old address and I think have already reached a default judgement in county court. Wondering if this can be reversed or the amount negotiated can be lowered given this is 2x+ what I originally received.
Default judgment against you is no bueno but if you never received proper service bc of the old address issue, then you can challenge the service requirement since that’s a violation of due process. You would need an attorney to help you do this, though, so step one is to find out the actual status of the claim (collections vs court) before proceeding further.
The amount can almost certainly be negotiated but you need to get it done asap and the judgment off your record. For one it will affect your credit if you don’t. CCJs are disclosable events to the FCA as well so make sure your do that if you need to (they won’t care as long as you are dealing with it but they will care a lot if you don’t disclose it). It’s really manageable but you can’t sweep it under the carpet.
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