I owed a balance on a credit card for about $400 unpaid a few years back. They sent me to collections. I spoke to their collections people many times, but they insisted on playing hardball and wanted to collect $900+. Now I just received a letter notifying me that they are suing me for $1500 including interests, collection costs, and legal fees. Can they win? What do I need to do to get this resolved?
2006-11-04 09:15:02 · 14 answers · asked by Easygreasy 2 in Business & Finance ➔ Credit
How long has it been since you were asked to pay? You may owe nothing! :)
Collection companies are oftentimes dishonest in their methods as they may have purchased your debt for pennies on the dollar.
Depending upon where you live, the statute of limitations may have allowed your debt to expire.
Look at this website for exact info: http://www.cardreport.com/laws/statute-of-limitations.html
2006-11-04 09:21:37 · answer #1 · answered by ramnas06 2 · 3⤊ 2⤋
The short answer is yes, the long answer is no. Yes you do still own the money and if they are willing to pay for your debt, they can buy it. However...... It is unlikely that the debt will be collectible. The laws vary from jurisdiction to jurisdiction, but in all U.S. jurisdictions you have a limited time within which to press your claim in court. Not having done so after all this time, the claim is probably dead. One warning here, don't pay anything on this debt, do not sign anything and I probably wouldn't even talk to them until I had consulted with my attorney. If you acknowledge this debt, you run the risk of reinstating it. Additionally, under the Fair Credit Reporting Act. Derogatory information can stay on your credit report for only 7 years after the date of first delinquency. Collection agencies will frequently try to restart the clock by mis-reporting the date of first delinquency, but this is illegal. Here again, don't pay anything on this debt, otherwise you will have created a new date of first delinquency. That is something you definitely do not want to do. Good Luck
2016-05-21 23:40:48 · answer #2 · answered by Anonymous · 0⤊ 0⤋
People and Credit! If you don't pay- you get screwed- for many many years- no matter how much t is. If you learn one thing- learn THAT!
Yes they can and most likely will win. I bet its very high percentage card and that is where the amount comes from.
Your best bet is to call the agency handling it and tell them you'd like to resolve it out of court at the best possible benefit for you. If you go to court- you will lose for the full amount they are asking for.
Once you come to a settlement on the amount- tell them that you will pay with the documentation of the account being satisified on your credit report.
When you send the payment- on the back of the check or money order write "endorsement of this check authorizes payment in full of account #XXXXXXX- any further amounts are considered paid in full".
Good luck with all that.
Hope this is your first and ONLY lesson.
2006-11-04 09:22:07 · answer #3 · answered by Mommyk232 5 · 3⤊ 0⤋
It depends..how many years ago, what state? Each state has a statute of limitations on how long a creditor has to bring suit against you in court. For example-I reside in Texas the statute here is 4 years from the date of last activity on the account. Other states may have longer or shorter limits.
Every day, consumers pay off collection accounts and charge-offs which they do not have to pay off because the Statute of Limitations has already expired for the open account. Consumers pay off these accounts because the accounts still appear on their credit reports.
2006-11-04 16:54:20 · answer #4 · answered by creditqueen 1 · 0⤊ 0⤋
If you owe the bill and the late chages and interest charges for the $400 add up to $1500.
2006-11-04 11:21:39 · answer #5 · answered by Mariposa 7 · 0⤊ 0⤋
Should have paid the $400.-. Interest and Late Fees are legal. You are liable for the Debt.
2006-11-04 15:06:31 · answer #6 · answered by barbara w 2 · 1⤊ 0⤋
Once you're sued, you're screwed. They can charge you interest, collection fees and their legal fees and you are responsible for any legal fees you might have. It would have been easier to pay off that $400 a few years ago, wouldn't it have?
2006-11-04 09:19:39 · answer #7 · answered by schoolot 5 · 4⤊ 1⤋
the only way to avoid paying the higher amount is to see if you can go to the origional lender and pay up directly.
This is probably imposible but worth a shot.
GO TO legal aid right NOW and get some help with this.
IF you ignore it it will get worse and a judgement for the largest amount will be placed on you.
so the answer is YES you have to pay something and yes they can quadruple the amount because you blew them off for so long.
2006-11-04 10:38:29 · answer #8 · answered by ??IMAGINE ?? 5 · 1⤊ 0⤋
check the status for debt in your state you may or may not be liable legally for the debt don't agree to anything or pay any money till you know the status if you make a payment and you are past the status of limitations you re open the debt
2006-11-04 18:03:03 · answer #9 · answered by moonwalker 3 · 0⤊ 0⤋
What does your original contract with the credit card company say? If it tells you that they will charge you these late fees, etc., then it is possible that they can win.
2006-11-04 09:18:09 · answer #10 · answered by Jocelyn L 4 · 2⤊ 0⤋