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Old Credit card with collections, but keeps going up

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Nicegirl
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Subject: Old Credit card with collections, but keeps going up

Sat Aug 23, 2008 5:20 pm

erb1953

Joined: 31 Dec 2007
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Posts: 631

8 Magic Points

Sun Aug 24, 2008 1:13 am

Wow, what a mess right, it amazes me what these companies get a way with sometimes, this is just robbery.

I would send them debt validation letters, I would not pay these collection agencies this much money, that is just nuts. Send a debt validation letter, make sure that you send it certified mail, return receipt requested.

fireyone

Joined: 26 Feb 2008
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2195 Magic Points

Sun Aug 24, 2008 2:17 pm

Thats all good advice and needs to be followed Erb. Nicegirl what are the statue of lim itations for the state you are in? You can give us the state and we can tell you. Erb do you think that the OP would be prtected by SOL. The fall off date suggests that it might depending on the state. That just seems like an absurd amount to repay to those collectors.

creditcardwarehouseonline

Joined: 28 May 2008
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1180 Magic Points

Sun Aug 24, 2008 2:34 pm

Check your states limit for allowed interest to accrue. Collections cannot charge you the same interest that the credit card companies can. Once that card is in default there is a limit to what they can charge. Here is florida i believe in is 10 or 11 percent. Also you might want to check the statue of limitations in your state. If you havent made a payment in three years and your states statute is 4 just ignore it. If they try to sue you, you can always try to settle before you have to go to court.

fireyone

Joined: 26 Feb 2008
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Sun Aug 24, 2008 2:40 pm

Love your posting credit. Always know there will be aome good advice where I see your name. Thanks.

anthony

anthony

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Tue Aug 26, 2008 11:39 am

Hi nicegirl
As first you need to know how old is your debt. If your debt is had passed the statute of limitation of your state then you need not worry about it. It will stay in your credit report for seven years and will automatically be removed. However, if it has not crossed the SOL, you need to contact the collection agency to make them agree for a reduction of the debt amount. Most of the collection agencies agree to settle at 60% of the total debt if you can negotiate.
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Anthony Marx

A positive attitude is not achieved by turning a blind eye to the negative, but rather by responding to every situation in the most positive way possible.
You can also visit my blog
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fireyone

Joined: 26 Feb 2008
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2195 Magic Points

Tue Aug 26, 2008 8:32 pm

I really hope she comes back and answers so that we can help her.

Nicegirl
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Wed Aug 27, 2008 8:47 pm

From what I have read online, the SOL is 6 years in Maryland. I think the last payment that I made was in 2005, so that would be about 3 more years I guess. But I don't know how to find out about the interest rate and how much they can charge. I didn't even know interest was still increasing.

Does this mean that they are going to go after me more strongly? I haven't heard from anyone at all, except a letter last year that it went to another collection agency (yet again--it seems to have gone through like 4 or 5 by now). But I fear they will try to sue me for it because it is so high and increasing.

I have not even used the card since 2003 (purchases or cash advance), but would a court still expect me to pay nearly 10,000 in interest? That's what it feels like. Should I wait until they threaten before I send them debt verification letter? I feel that contacting them may make things worse (unless I contact them correctly, I suppose...)

Justin

Justin

Joined: 17 Jul 2006
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Thu Aug 28, 2008 12:15 pm

Hi Nicegirl
Since the SOL in your state is 6 years, you need to wait for another 3 years. Within these 3 years, it is quite possible that the creditor can sue you to the court and bring judgment against you. So you should contact your creditor and try make them agree to settle for a less amount. Mostly they agree to settle at 60% to 80% of the outstanding amount. After that go for a repayment plan which you think will suit you.
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Justin

fireyone

Joined: 26 Feb 2008
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Thu Aug 28, 2008 12:23 pm

Justin I thought that there was a point that they were not allowed to add anymore interest to the debt, especially when other creditors are buying it. I can be misinformed.
Nice girl you need to look for new post on this forum and ask that question. Maybe you will get someone who knows the rules to this.

Nicegirl
Guest

Mon Sep 01, 2008 4:42 pm

Okay, Thanks everyone for your suggestions.

My main problem wasn't exactly paying it, but establishing a repayment plan that may potentially go on forever because of interest still going up. Since its such a large amount, the interest seems to be going up fast. I did that before (paying on it every month) and it never went down. I am in the same financial situation as before, husband and I never made much combined at all, last year it was $17,000 yearly, though we made about 28,000 combined when we weren't in school. So I don't want to end up paying a lot of interest for years for nothing again, only to watch it continue to go up as I pay what I can.

goodnatured

Joined: 03 Nov 2007
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5334 Magic Points

Mon Sep 01, 2008 7:44 pm

who has it now a collection agency? If you made any payment at all then you started the Statute of Limitations all over again.
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Goodnatured,

Trying to become and stay debt free, thank you for all your help and support!

fireyone

Joined: 26 Feb 2008
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Tue Sep 02, 2008 12:46 am

Gn is exactly right. Anytime you make a payment the SOL starts from the date of last activity, which a payment would be considered as an activity.

goodnatured

Joined: 03 Nov 2007
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5334 Magic Points

Tue Sep 02, 2008 1:49 am

She sounds as if she has been making payments on this, if that is the case then this is not good news. Hopefully she will come back and explain if she has made payments recently or not.

Statute of Limitations starts at the date of last activity, weather it is with a collector or the original creditor.
_________________
Goodnatured,

Trying to become and stay debt free, thank you for all your help and support!

fireyone

Joined: 26 Feb 2008
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Posts: 2871

2195 Magic Points

Tue Sep 02, 2008 1:52 am

I am opretty sure if she did make payments she pretty muc=h hurt herself cause I believe Maryland has on of the lowest SOL...I think it is three years. But as you said hopefully she will stop back and we can see what we can help her with.

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