I owe original chase credit card $5900 in 2003. I went out of county for three years after 2003. During that period, this account was purchased by 2 collection agencies. The second one offered me a settlement for $2500. As I could not get that information that time, did not proceed with that option. Now I am back in country and this account was purchased by third collection agency. They now say that the total account balance with intrest is little over $10,000. They referred this account to their attorney for possible law suit. When I contacted the attorney, he is not accepting for any settlement less than $7500. I did not requested validation of debt as I know this is a valid one.
Is this amount $10,000 now with intrest is legal in NJ on an initial principal of $5900 from 2003? And is there any way that I can use offer from previous collection agency?Is $7500 a reasonable offer for settlement? He accepted to give me a letter in writing that the account is settled in full.
2007-10-19 17:19:04 · 5 answers · asked by Auto Qs 1 in Business & Finance ➔ Credit
I have a car on my name and a decent job now. I make around $65k per year. And I want to repair my credit now and scared that I might end up paying more than 10,000 on top if they go to court. i.e. their expenses and all
2007-10-20 05:33:53 · update #1
Can I accept FAX letter of settlement agreement if I do not receive the original letter by mail before the first payment is due?
2007-10-22 12:38:42 · update #2
They can ask for all it. Yes, you agreed to the terms, so it is legal. Visit an attorney so you don't get into more trouble.
2007-10-27 15:34:38 · answer #1 · answered by Anonymous · 0⤊ 0⤋
im sure they can charge interest if they want. i dont think its right since they bought they account for pennies on the dollar. its not right they charge interest for money you didnt get from them. do not settle. your cr is already bad. youll reage the debt. see if they take you to court. if they sue show up and get a settlement on the principle balance. maybe only 50%. tell em to shove the interest. my guess is they wont even sue. it may be possible to request validation yet. try it. also check sol in nj.
2007-10-20 02:46:28 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You really need to talk to an attorney. Credit cards are unsecured debt. I think that you can pay it off around $6,500.00. They can demand all they want, demanding is not getting.
2007-10-20 00:31:24 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Them late fees can pile up fast and % compounds on the total due .
Wait until you see the legal rates on payday loans !
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2007-10-20 00:24:55 · answer #4 · answered by kate 7 · 0⤊ 1⤋
Don't pay anything. Make them take you to court. If you don't have the money, or assets, there's not much they can do.
2007-10-20 00:25:31 · answer #5 · answered by Ray B 3 · 0⤊ 3⤋