Four years ago the bank didn't close my account like I requested and started putting money in it (overdraft protection that I didn't even have) and charged fees and all that. I didn't find this out until there was 250.00 owing and the bank "closed" the account offically. 2 years of arguing with them and showing them that it was their error, I gave up and just went cash only. Now, today I got a letter from a collection agency saying that I owe them 368.00 I am used to dealing with collection companies, but is it different when the account was a bank? If I didn't pay the 250 I am certainly not paying the collection agency. My main question is are there different rules for collections for a bank then for a credit card?
2007-03-23 11:49:34 · 4 answers · asked by operaphantom2003 4 in Business & Finance ➔ Credit
Most likely, the bank reported you to chexsystems. Derogatory information stays with chexsystems for five years. Your overdrafts could have been reported to the credit bureaus where derogatory trade lines remain for seven years.
If your debt to the bank is past your state's statute of limitation, the collection agency has no legal way to collect from you.
To check your state's statute of limitation to go the following link:
http://creditinfocenter.com/rebuild/statuteLimitations.shtml
2007-03-23 12:16:23 · answer #1 · answered by Ti 7 · 0⤊ 0⤋
The collection rules are for ANY debt. For what its worth, a credit card debt IS a debt to a bank. Even a store branded Visa or MasterCard is actually issued by a bank. That said, something had to hit your bank account to trigger the overdraft in the first place. Did you forget an outstanding check when you tried to close the account?
2007-03-23 20:40:27 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
Sounds like the collection agency paid off your debt and is adding their cut on top.
My advice to you is call them up, treat them like human beings and use your God-given people skills.
If it starts to go nowhere -- remember this. Paying $368 now might save you much much more in interest if you are able to improve your credit score and get approved for a prime interest rate loan down the road. This could be a car loan, refinance cash out, about anything you can think of to get cash later on...
Try not to think about how much they screwed you, because obviously this is what happened. Focus rationally on how much this error on their part might cost you down the road, and get into problem solving mode!
Best of luck!
2007-03-23 19:00:45 · answer #3 · answered by Credit Advisor 1 · 0⤊ 0⤋
may need some legal-advice on this one--banks are tricky--try calling prepaid legal.com,,or go on line too;www.budhibbs.com,,he could help too;;
2007-03-23 18:56:13 · answer #4 · answered by dolly d 2 · 0⤊ 0⤋