HELP How do you dispute/stop a 10 year charged off amount that a new debt company is trying to get paid for?

Question

My poor mom, had money zapped out of her account by a debt company that must have bought a debt from a previous company. The amount they claim was 10,00$ all of which was instrest and fees, she formally mailed a letter in response stating she didn't owe this comapny and that this amount was more than 10 years old, she had never heard of this new company (until last year when they sent apay this or else letter) and that they had no right to renew the false debt. They have since tapped all of my mom's bank account and taken 4000$ !!! What can she do to stop them. Appearant when we went on vaction in january they went to the court to ask for payment on the 10,000$ false debt even though they had her response and they know the debt is past collection more than 7 years they are not suppose to be able to renew and collect on old debt. HELP. I dont' want her to just let it go but at the same time if a lawyer costs as much as the debt than it's a double wammy

The orginally debt was from one of the those nasty fake credit card that the minute you use it you owe your full "credit allowance" and she canceled it. Appearantly they charged per month fees and intrest and late fees to get a total of 10,000$ I think the orginal limit was 300$ which of course she got nothing for. I'm afraid she will just let them steal her money, she should act fast.

Answer 1

I suggest closing the bank account so they can not get any more funds.Then I would seek out a legal aid lawyer. This type of lawyer will not charge as much as regular attorneys. They are set up according your income.

Answer 2

It sounds like your mom has been avoiding this debt for far too long. She should have contested it the first day she heard about it. "Charge-off" does not always mean the money is no longer owed.

Check the yellow pages or ask friends if there is a public service that can help her straighten this out. How does this company have access to her bank accounts? If there was a court hearing, she would have been invited, why didn't she go?

Closing the account may not be a good idea, since many agencies charge penalties, fines and fees if a garnished account is closed!

Answer 3

As a law student, I can say that even if you think a lawyer is quite expensive, you should seek information in the court closes to you. There is always free services for people who don't have the resources. Also, you should browse the Federal Consumer Credit Act, tried to Google It!! Also try http://www.hg.org/consume.html. If you are patient you should find all the information you need. If you feel confident about your position in the situation (your mom canceled and you have evidence, also you have evidence that the debt was written off her credit report), you should try to write them a letter with all the legal information you can find on the Consumer Credit Act. That is the federal law which regulates everything about consumers and their credits. If you have any questions you can write back....it's summer so I have time off to browse the net. Good Luck, and tell your mom she shouldn't give in just because they are sending letter, but if they are taking money out of her account without her permission that is illegal!!! So start reading up the law, that page which I wrote earlier also has info, and the net has a bunch.

Answer 4

She should have disputed and resolved it ten years ago. Debt do not expire, after ten, twenty, or (here is the big shocker) thirty years if you owe money to someone and you haven't paid you still are obligated to pay. There is no such law that tells you if you don't pay your bills for seven years they get erased. If there was one can you imagine the economy? Nobody will pay anyone, all stores will close, all manufacturers .... Get your mom to resolve it but don't be mad at the debt company-they are just doing their job. Your mom should have made sure that her account with that credit card was completely closed.

You mentioned that they took money out of her account but you also said that they took you to court. Well, first off they can't just go to the bank and tell them "give me all the money in this person's account number" They took your mom to court, put a judgement against her, if she failed to appear in court. With the order of the jufge they CAN and WILL have access to your mom's bank account. But that is the only way they can get it. So ask your mom why she didn't go to the court.

Answer 5

Your Mom can represent herself in court, she doesn't need a lawyer, buit she DOES need to be prepared. Go online to your local county clerk, find the "forms" area & look thru them for a form that addreses her situation - debt resolution, fraud, something like that. She can also go to the same court the collection company got the judgement from (those are all public records) & get all of the information about the collection agency that filed suit aganst her & take them to court. There are a lot of law organizations that will help with this process, just get online & search for "free legal help" & other stuff like that. She should also go to the branch manager at her bank, explain to them what happened & ask their advice.

Answer 6

I would go to the bank and file a fraud case against that company and change the bank account number. They should have no legal right to take money out of her account without her permission. She may have had autopay set up a long time ago and they activated it again.