I'm 21 + a single mom. I got a Chase credit card 2 years ago with a limit of $300. I used it up, but never went over my limit. I was enrolled in a payment protection plan with the card, I lost my job+called Chase right away, they said everything would be ok. I asked them to cancel it and I'd pay the balance asap. The next month, I get a bill for $380, not $300. I called them+ they clamied that interest, late fees+overdrawn fees would still be added. One thing happened, then another.
They sent it to collections, now claiming the balance is $1,085.04. I get a call today telling me that I frauded Chase+ it's a felony charge. He said if I don't call back by 6pm with $408, he will call district attorney's office + they will issue a warrant for my arrest. I know debt collectors try to scare ppl all the time, but I am worried. I can't find any info online. He said if I had made at least 1 pymnt, this wouldn't have happened. I have 45 mins, no check, no debit or credit, no money at all!
2007-07-31 10:20:55 · 11 answers · asked by kjesmommy 1 in Business & Finance ➔ Credit
But the main point he made was I Never made One pymnt at all, he claims that is the "Fraud" of it. And that it is a felony charge. I never lied on app. it was my very first card, and I've only had one other which is completely paid off, cancelled and broken into pieces. I never paid this one bcus I tried disputing them charging it every month. I was very irresponsible, I admit that. My purchases were gas+ food, nothing shady. I know there's not a debtor's prison or jail. Thank you for all your answers!
2007-07-31 10:44:17 · update #1
The debt collector is breaking the law. Hold tight a few minutes I'll have a more detailed answer for you soon.
Here's the law:
http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm
as you'll see, it specifically forbids "The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person unless such action is lawful and the debt collector or creditor intends to take such action," under the heading "false and misleading representations." If you want to scare them, tell them you are recotding the call. Or go to radio shack with $50, tell them you want to record your calls and they will fix you up. It is legal for you to record your calls without notifying callers. Get their threats on tape and sue.
Or just get em off your back. Lots of stuff you should read here:
http://www.ftc.gov/bcp/conline/edcams/credit/coninfo_debt.htm
Once you have a credit advisor representing you, they aren't even supposed to call you. But watch out, a lot of supposed credit counsellors are actually scam artistes....read this:
http://www.ftc.gov/bcp/conline/pubs/credit/fiscal.shtm
Good Luck, and don't worry it is a headache but it's not hard...I was hospitalized with a stroke a few months after I lost my job last year....while I waited for Medicaid to come through a bunch of medical bills (thousands in debt) went to collections....I've had all but one of them removed from my credit report. I'll get that one off too.
There are many good people in the world who really enjoy helping others, you need to find one or two of them. You will!
2007-07-31 10:26:32 · answer #1 · answered by Dr. Souldogs 4 · 3⤊ 0⤋
Something sounds a little fishy to me. People get into situations all the time where they aren't able to pay the credit card debt-I've never heard of anyone being charged with a felony over it. Fraud implies that you were somehow deceptive. It don't see how they could possibly make a charge like that stick unless you misrepresented yourself when filling out the application or something. Credit card abuse is a different story but given that the original amount was only $300 I don't see how they could have your arrested on a felony charge for it. I would call your local District Attorney and find out for sure.
2007-07-31 10:31:30 · answer #2 · answered by Scottie 2 · 0⤊ 0⤋
As usual, the collector is lying. They cannot file criminal charges against you for not paying a credit card bill. He violated federal law telling you that.
There are a lot of things that you can do to make problems for the collection agency, but in short, if you can't pay, you can't pay.
If you play with credit cards, you'll get burned. Get out of debt and stay out of debt.
They have the right to sue you for the balance, but the amount is so low that they probably will not. They will probably harass you by phone for a long time to come.
Head to http://www.daveramesy.com to learn about credit cards, debts, and collectors. There is a wealth of information there, if you're willing to spend the time.
2007-07-31 10:29:07 · answer #3 · answered by ipguy 3 · 0⤊ 0⤋
he's blowing smoke, its not a felony to lose your job and run out of money. Cops aren't going to waste their time chasing people that owe a credit card company $1,000
Send them a letter telling them you are broke and that you plan to pay them back when you find a job. That will establish your intent to pay.
2007-07-31 10:27:12 · answer #4 · answered by John M 7 · 1⤊ 0⤋
I agree with the other posters that say the collector is violating the FDCPA.
What I don't understand is why the payment protection plan you were on did not kick in????
If I were you I would be going after Chase and the company Chase used for the PPP, if they used a third party company for it.
You paid for the protection, you should have been covered when you lost your job - make them pay up !!!!!!!!!!!!!
2007-07-31 10:58:12 · answer #5 · answered by echo 7 · 1⤊ 0⤋
i am sorry you are going thru that. i would love to know what they mean by fraud. you where responsible enough to call them and let them know about your situation. Looks like you do not have a way to make a payment. I bet you there are trying to scare you, because i had something like that happen to me, yet they let me make payments when it went to collections. It was with my student loans and i was going thru a real tough time. they ended up putting a lean on my car plates. I could not renew till i started payments. I am doing that now. you might want to talk to someone asap. a lawyer maybe?!? Do not let them scare you. I really hope it all works out for you. all my best! BTW that guy was in the wrong and i do think he was in the wrong for that. you should report him because God knows who else he is telling this to.
2007-07-31 10:29:33 · answer #6 · answered by carriec 7 · 0⤊ 0⤋
Please, if that were true, I'd have been in jail years ago. *ahem* I mean, no, they can't arrest you. They can haggle you all day, though, it seems. Just learn to avoid their calls until you've got the money to pay for it. Times are hard, bill collectors make it harder, but you'll be ok. Good luck, hun.
2007-07-31 10:30:11 · answer #7 · answered by Veronica G 3 · 0⤊ 0⤋
Good Luck, sweetie.
2007-07-31 10:24:31 · answer #8 · answered by Jessie H 6 · 0⤊ 1⤋
As far as I know there are no debtors prisons in the US.
2007-07-31 10:27:41 · answer #9 · answered by princessmmmy3 2 · 0⤊ 0⤋
There is no such thing as debtors court in the US.
2007-07-31 10:31:32 · answer #10 · answered by gbpackers_fan1 2 · 0⤊ 0⤋