The statute of limitations on collecting this debt in Michigan is 6-years from the date of first delinquency.
If that time has passed, they can still sue you but when it gets to court all you have to do is show that the S.O.L. has expired and it will be dismissed.
As far as the extra money is involved, this is due to interest and late fees tacked on by the collection company.
Check your records and make sure that the 6-years has passed and the next time they call simply tell them that the S.O.L. has expired and to not call you again.
2007-08-30 09:21:06
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answer #1
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answered by ? 7
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He is lying. The state will not look at this as a felony because it isn't. You will not go to jail. Don't worry about that. He broke the law just saying that. Let him know you know he is a liar.
Make him prove you owe the money. Demand it. It's your right. It may well not be you. These folks seek out people with the same name and try to get them to pay other peoples debt. If he can't prove the debt is yours and the numbers are correct then tell him to shove off.
The 3200 may well be interest and penalties, but you can bargain that away. His agency bought this debt for pennies on the dollar so they will settle for less. Offer him 1600.
His threat of suit is also a lie. They could sue you. They probably won't. If they do then look at it this way. They'll sue and win because you owe the money. The court will set up a judgement against you and require you to pay so much every month. What do you have - a payment plan. Unless the other folks here are right about the SOL. Even so, if this debt is yours, you should pay it. Not 9k, though.
Stay tough with this guy. Remember, if his lips are moving then he is probably lying. He will say anything, including breaking the fair debt collections practices act (which he's already done) to get you emotional. He say anything to get you to send him food money instead of buying food.
DO NOT give him electronic access to your accounts. DO NOT give him post dated checks. DO get everything in writing then keep it forever. DO NOT talk to him more than once a day.
2007-08-30 09:18:01
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answer #2
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answered by JB 6
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1st of all...the statute of limitations on an open ended account is 6 years in Michigan...so unless you have made a payment (which restarts the SOL) the SOL is up and he is just threatening you in the hopes you will pay...
You can settle for less than the $9k you owe (yes, they are hitting you for interest and fees, hoping you will pay but most likely they will setlle for less than the original $3200 you owed in 2000).
Remember they know if they push too hard you can always file bankruptcy and have the debt eliminated, so EVERY time they threaten you threaten them right back. You need to negotiate a settlement, not just a payment plan.
Your first line of defense is a Debt Validation...this is where you are asking them to account for EVERY PENNY of the debt they are trying to bill you for. Here is a link that explains in detail how to request a debt validation. Time is on your side here, the debt is old and that makes it more difficult to validate. http://www.creditinfocenter.com/rebuild/debt_validation.shtml
IF they can validated the debt then you need to negotiate a settlement, not just a payment arrangment. You need to negotiate for less than you owe and for a "payment in full" placed on your credit report (or even a removal if possible).
What ever you do, do not make a payment until you do the debt validation...this will automatically validate the debt in the laws eyes and it restarts the SOL.
Good Luck
2007-08-30 09:33:45
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answer #3
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answered by Anonymous
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Ooh, he's playing hardball and stepped over the line. Your debt is a civil case. There's no criminal offense.
If you haven't paid on this card since 2000, it's been accumulating interest, late fees, and overlimit fees.
Truth is that this debt is close to falling off your credit report. It's also past the 6 year statute of limitations for Michigan. He could take you to court but you can use the statute of limitations as an affirmative defense. You could just sent him a drop dead letter. He would probably sell the debt off to another collector and you'd have to go thru it again.
Or you could do the moral thing and pay the debt. He'd probably settle for about $2,000 in a lump sum.
2007-08-30 09:22:22
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answer #4
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answered by bdancer222 7
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number one, the bill is still accumulating interest from the last time you paid it. Let me explain to you how it works. The credit card company gives you 180 days ( 6 months) to pay the account before it is charged off. For those 6 months. every payment that you miss, or are late the company charges you interest plus a late payment fee. after the 6 months they only charge you the interest. You may be able to ask for a settlement on this account. Another thing unless you give him permission to contact you all day everyday he can only call you once a day every 7 days. The only way that he can file a law suit against you is if he is an attorneys office ( ask him) if he is not let him know it is against the law to state that unless it is true. Again he is lying to you no state can take out a felony against you for not paying your bills. In fact if he is telling you all these false things you can advise him that you will file a law suit against him for misleading you. I would advise him that you will be recording his/her conversations and will seek legal advice if he keeps lying.
2007-08-30 09:18:16
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answer #5
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answered by fab m 1
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The $9,000 is probably due to several late fees and the interest that has accumulated on the original $3,200. I assume that you do owe the original amount at least, so you should demand to see the paperwork regarding the $9,000 so that you can determine if the fees are accurate. I have been in a similar situation, and I can tell you that while this is serious, you don't need to be extremely worried. He is throwing that stuff about a law suit and prosecuting you for a felony in there to freak you out and to get to you do what he really wants, which is for you to pay the money.
That said, you really need to get this take ncare of. I would recommend trying to negotiate the debt down to a more manageable amount. They will almost always do this if you agree to either pay all of the money at once or agree to pay a lesser amount back in a shorter period of time. Remember, the only way this guy makes money is if you pay, so he needs you to pay, that is his job. When you are negotiating with him, be firm, don't let him rattle you and state your terms clearly.
Whatever agreement you make with him, get it in writing. When you make payments to them, do it in a way that can be recorded easily, such a check or a money order directed to them. Keep copies of everything. Once the money is paid off, ask them to send you a letter that states that the debt has been paid in full, and to update that information with all 3 credit agencies. It is important to get that agreement and to keep track of your payments to them because they have a nasty habit of trying to add even more fees on after you have paid the agreed to amount. Also, you may need that letter showing paid in full to send to the credit agencies yourself to get your records updated.
I could go on and on - I have been in this situation myself and it really sucks. You have limited options, but you do have options. Good luck!
2007-08-30 09:21:04
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answer #6
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answered by jml167 4
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A settlement company could likely save you even more money. Check out the free evaluation form at the source website.
Goodluck.
2007-09-01 03:13:57
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answer #7
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answered by Anonymous
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I used to work for a debt collection agency and it is extremely difficult to fight such matters. You had a bill you didn't pay, which you admitted in your question. The only option is to ask them if there is any way they can lower that amount and to stress that lowing it is going to make it easier for you to pay it. But 7 years is a long time to go without paying and I doubt they are going to reduce it.
I believe that the amount is likely correct. The debt collector purchased your debt and now they are paying staff to track you down, get you to pay it, and also making you pay for all the other people that declared bankruptcy and screwed them out of payment.
2007-08-30 09:10:58
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answer #8
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answered by nowhereuare 4
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Two things:
1. Tell him to stop calling you--that's harassment
2. Call his bluff. He's trying to get you rattled and make some agreement.
Another thing I have used is to tell them that you are recording the call and ask them to give you their name rank and serial # if you know what I mean. If they think you are recording things they will pull back. Try it, I'll bet they are recording things on their end.
2007-08-30 09:22:32
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answer #9
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answered by Dewey K 2
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Spiffman is correct. If the debt is past sol, tell them to take a hike. Credit card debt isa civil matter. There are no debtors' prisons in the US!
2007-08-30 09:44:34
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answer #10
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answered by Ti 7
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