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the call made by a financial institute. mentioned to retrived statement from branch....he adviced not to. actuall amount only 4k but due to the duration of time accumulated to 22k. this has been 2yrs plus but why they did not informed me earlier. told him that the last amount was settle via easy payment he mentioned that its was the other card. i have only one......kindly advice as currently i feel that somebody is taking me for a ride

2007-08-16 15:44:04 · 7 answers · asked by alexzamhari88 1 in Business & Finance Other - Business & Finance

7 answers

This was a collection agent who bought the debt on your credit card and is now trying to collect the past due amount. Collection agencies then appear to increase the amount owed through fees and interest. I've known a 2 year old debt in collection of $7,000 increase to $13,000, but never heard of fees such that would increase the amount from $4,000 to $22,000 over the same period. That would likely depend on the interest rate associated with the card and the debt you ran up. Was this a high interest bearing card for users with questionable credit? Regardless, you are entitled to a full explanation of the amount they claim you owe. Personally, I question the legality of collection agencies pursuing you for more than was originally owed, since they acquire the debt for 60-75% of its original value anyway.

What you need to do, in my opinion, is as follows:
1. Get a full explanation of the amount they claim you owe, showing the original balance and any accrued interest and fees appied by the new owner - the collection agent.
2. Contact an attorney, preferably one of these free legal advice help lines if you don't have one you can pay outright, and question them on the legality of the issue of the collection agent charging you fees and interest, increasing the amount due.
3. Attempt to settle the debt by offering to pay the original $4,000 to them over a very short period of time, against which they agree to forgive the $18,000 in fees and such they've accrued and remove the negative credit history.

Would be most interested to know how this works out for you. I'm thinking this is a new racket which collection agents are into to maximize their profits, predicated on the need for formerly poor credit rating holding debtors to repair their bad credit ratings (on Equifax, among others) in order to obatin further finance. Seems pretty nasty....

2007-08-16 22:20:09 · answer #1 · answered by Anonymous · 0 0

It is a scam.

If it was real they would be more than willing to provide information.

If you want. you might mention that where you reside, has Usury laws. These are laws governing the amount of interest that can be charged on loans. The only way that 4k would become 22k would be an extreme amount of interest. The law takes a dim view of those that charge extravagant amounts of interest. And if they would be so kind as to provide you with a contact point you would be more than willing to send the police over to press the charges.

2007-08-16 22:57:13 · answer #2 · answered by Old guy 124 6 · 0 0

What you said makes absolutely no sense. The first thing you must do is to authenticate the caller... is this really a call from your bank or is this someone who is trying to scam you?

You must already know the bank that is calling you. Contact them back and see if they can tell you anything more. Then, ask for a paper copy of the statement showing the amount you owe.

Until you know for sure, don't reveal any personal information!

2007-08-16 22:51:07 · answer #3 · answered by tkquestion 7 · 1 0

should they call again, tell them you'll on discuss the matter after they provide written proof of their authority on this matter from the original creditor.

my guess is that's the last call you'll get.

**
and, you're absolutely serious about it ... because

suppose someone already stole your identity three years ago, opened a card in your name at some different address, then changed the address to your real address when they decided to cease paying??

so what you want is this outfit's authority and full details ... when opened, where, by whom, etc.


no writing, no pay


if they continue to call but won't provide a copy of their written authority, they're harrassing you illegallly and you treat them like any other harrassing bill collector [see other threads for how to]


GL

2007-08-16 23:07:43 · answer #4 · answered by Spock (rhp) 7 · 0 0

I think they are taking you for a long ride..if you don't owe it don't pay anything..if you pay a small amt or any amt they will decide you admit ownership of the bill. Also collection agencies must not call you if you tell them not to..

Sunday..A radio consumer editor answered that question today..contact the original business, ask for a paper copy for proof..it agreed with the rest of my answer..the collection co. makes their money on small bills, $100.00 or less as people will pay them without checking as it is a small amt.

2007-08-16 22:52:28 · answer #5 · answered by jst4pat 6 · 0 0

sounds like someone trying to scam you or still your identity. Call the financial institution (Via a phone number you already have not one he gave you) to verify

2007-08-16 22:51:24 · answer #6 · answered by Tom V 2 · 0 0

Sounds like a scam, do not give out any personal information.

2007-08-16 22:49:19 · answer #7 · answered by JAN 7 · 0 0

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