How can this be legal?

Submitted by nomoredrama on Wed, 01/07/2009 - 09:13
Forums

I received a letter to collect a debt that says the orginal amount was $9k and that the intersted is $25k... how can that be legal? I'm not being sent a summons to appear for this. I really need some good advice. I've talked to three lawyers and each give me different stories and advice.

If it is a credit card debt, then due to addition of interest the outstanding amount can go up to 25k. I would suggest you first to check your credit report to find out whether the debt is listed there. If it is listed in your credit report, check whether it has been charged off or not. If it is charged off and the debt is still with the original creditor, then come to a pay for deletion agreement before you repay off the debt. However, before doing so, always send a debt validation letter to check whether you actually owe the amount or not.

Wed, 01/07/2009 - 12:46 Permalink

No More drama, How old is this debt and also what state are you from? There is something called the Statute of Limitations (SOL). For an account to aquire that much interest it appears to be pretty old. If your debt is past the SOL then you do not want to make a payment on this debt because you will restart the SOL time clock. Here in PA the SOL is 4 years. If a creditor tries to collect a debt after the four years have passed then the debtor would win in court since they are past the statutes of limitaions on collecting the devt legally. Get us this info and we can look up your state and see if you are protected.

Wed, 01/07/2009 - 23:55 Permalink