Can a creditor offer to sue you and lend you more money at the same time?
Answers:
No, they are playing you. Go to www.adviceontime.com and read the artilce on credit, and the one on getting rid of debt collectors. This will answer most of your questions.
Sure they can do both. Furthermore, if the company does sue, they don't need credibility. They will rely on the written contract and the law does not require that a contract be wise to be enforceable. They could be as stupid as a box of rocks and can still sue if you have failed to perform as you agreed,
I wouldn't bite the hook if I were you. They may actually be trying to gain more information about your finances and/or employer with a phony credit application.
Without knowing what your income and expenses as a total are.. I can say that it sounds like one part of the organization (marketing) is unaware that you are in trouble with (billing).
Frankly, they would very likely stop any credit enhancements or additions before it was actually approved by their credit department.
I would continue to do your best on paying the bills down, if you have this along with additional credit card debt.. I would encourage you to try to work with them, and explain that they cannot threaten to sue you over the debt unless they actually intend on following through. Otherwise, that tactic would be considered a threat and against the Fair Debt Collection Act.
Have they sent this to a Debt Collector? Also, what are the terms of the original loan? You might be able to work with them directly, and explain to them that you are in hardship, just barely keeping the house. You can try to strike a deal, getting a reduced payoff, then putting the payoff on a low interest Credit Card, or if you have equity to pull from your house.. well you could use that of course.
Good Luck..
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