Old Credit Card Debt?

Question

I recently received a letter from the court requesting that I pay my outstanding credit card debt from a few years ago. A couple of days later, I received a call from a Lawyer demanding that I pay the debt immediatly. I currently don't have the funds to pay the debt in full and have been informed that they will be charging me 9% interest each day on the full balance. Does anybody know what my options are?

Thanks!

Answer 1

Credit card debt can sometimes be like a bad penny that keeps turning up. Obviously, the only wise course of action is to pay bills promptly and never get oneself overextended. But for those who have found themselves drowning in credit card debt with no way out, this hasn't always been an option.

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In cases where people have been unable to repay a credit card balance, the lending bank normally is forced to "charge off" the amount owed. The banks will usually do this after a period of time, such as after 3 – 4 months of delinquency. But this doesn't mean that the debt has been erased, by any means. It is more of an interim accounting measure on the part of the bank to reclassify the funds that appear doubtful in terms of repayment.
so pay it off.
get solution about your credit card problems at: http://www.credit-card-forums.com/forum/

Answer 2

Something is wrong here.

For starters, the court does not send you demand letters. At best you would receive a copy of a judgment. That means that a judge has ruled against you and given a default judgment to the collector.

That in hand, why on earth would they still be harrassing you? They would just start garnishing your wages or freezing bank accounts. And they do NOT charge interest on a daily rate.

So my first impression is that you have a collection agent lying through their teeth and trying to scare you. Just from what you stated in your question (if it's all true), the collection agent is in violation of 3 laws already, and could be sued under the Fair Debt Collections Act.

Email me if you need further help with this. I'm not a lawyer or credit counselor, just someone who actually does their research and understands the law!

Answer 3

Most companies are willing to settle with you meaning that they will allow you to pay a percentage of what you owe. If you don't have the funds available to you, contact the company and request that they form a settlement with you. Remember, these companies use scare tactics to try to get money from you so don't be easily swayed by their threats.
If you end up writing a check to them for the settlement amount, make sure to include an endorsement in the back saying that you are paying in full and they will close the account after the payment. When they cash the check, they agree to the endorsement and cannot seek the rest of the payment.
They do have the option of sending the check back if they do not agree with the endorsement, but at this point I'm sure that they just want their money.
Make sure to keep a better hold of your credit from now on, every major purchase in your life will be based off of that number and it is extremely important that you have control of it.

Hope this helps!

Answer 4

I'm surprised that the account didn't close out. This lawyer sounds suspicious to me. If it was from years ago, they wouldn't contact you now demanding money. Plus, after that time has past, they cannot legally charge 9% intrest each day.

FYI, they cannot threaten you to pay in full, it is against the law. I suggest you pay it, but if all you can afford is $5 a month, then that is all they will get and will have to deal with it.

Attempt to pay, is an attempt to pay. If they bring you to court for not paying the full amount, thats when you tell the judge that you are making attempts as best as you can.

They are just threatening you, pay what you can. I suggest seeking legal advise from a free legal service. Like www.freelegaltree.com

Good luck to you

Answer 5

Listen, I was in the same boat and I work for attorneys that told me to write to each of the creditors that I owe money to and state that I am going to pay ____.00 a month and and that to please stop harrassing you. You have made an aggreement to pay and if they take you to court make sure you have copies of the letters so that you can prove that you are indded wholeheartedly attempting to pay them every month. They can't come after you. You are paying them back even if its 5.00 a month!! The bottom line is they are recieving a payment from you! It worked for me and I recently settlled 2 of 4 credit cards!!!
Good Luck let me know how it goes, They won't deny payment, they want some kind of money, because they would rather get something rather than you applying for bankruptcy and them not getting anything at all!!!

Answer 6

You should first find out if the debt is even collectible. Every state has a statute of limitations on written contracts. The newest trend in debt collection is the aggressive pursuit of debts that you no longer are liable for. Collectors buy these accounts for a few cents per hundred dollars, so anything they collect is profit for them.

If the statute of limitations has already passed on your debt, then you owe them nothing and can request that they cease and desist all contact with you regarding that debt.

If the statute of limitations has not passed, they have until that date to pursue a judgment.

Answer 7

They may take you to court and the court will order payment which may come from garnishing your wages. Call the lawyers and make sure they are a law firm not a collection company and request a payment schedule with terms that you can afford.
I can't imagine that they could charge you 9% a day...that's outragous!

Answer 8

I would do a search on this so called "law firm" some of these places claiming to be lawyers are really just collection companies in disgusie. You would have to have a pretty large Credit Card debt for them to bother taking you to court to garnish your wages. They wont do it just for a couple of thousand dollars

Answer 9

First of all, screen your calls, creditors will hound you to pay debt regardless of what you tell them. It is illegal to threaten you so if you do speak with them record it if you can. Get in touch with a debt consolidator. Sometimes they will give you free advice on what to do and what other options you may have. If they aren't willing to budge with a payment plan of some kind, then a consolidator can definitely help you on your behalf. Expect fees though.

Answer 10

Contact a local credit counselor or bankruptcy lawyer, find out what your rights are, and stand up for them. But really, 9% isn't that bad considering what the IRS does!