Tried to settle debt with with law firm but what they are asking for is rediculous. Help?
My husband had a credit card with Keybank that went over the 0 dollar limit. Before we knew it there was already 0 in interest tacked onto the balance. We tried to set up lower payment arrangements they said no. We started paying 0 for about 3 months, we just wanted the debt gone. When we got our statement back the balance hardly moved. We were told that was because a majority of interest was being taken off do to being over the limit. So we stopped paying. Now it’s been quite awhile and the card has been sent from collections to a Law firm. They now say the 0 balance is 91 do to extra interest. We wrote back appealing the balance and said we know, from our last statement received from Keybank, that the balance we owe is 0. We said we could pay no more than 0 a month with no extra interest tacked on. We sent a copy to the judge. The law firm sent back saying they will allow 5 a month on the 91 balance with 24% APR. Can they do this? What should/can we do?
Thanks for all your responses. I believe it has actually gone to the judge. I completely understand this is our fault and we have to pay the debt. My questions is how is it possible for them to keep tacking on interest when it’s a closed account. The account was closed at 0 and sent to collections. While in collections they added on an additional 1. We really tried working with them but they wouldn’t take payments. It was either all or nothing. I don’t understand also why the law firm would want to tack on so much interest. OBVIOUSLY we don’t have alot of money that’s why we stopped paying in the first place. We tried reasoning with them so how do they think it’s right to ask for quadruple what the original debt is? I think it’s wrong for companies to tack on so much interest and aren’t willing to try and work with you.
Also we have been only discussing the matter with them through mail. We have copies of everything and have also forwarded every letter we wrote to the judge. I am more than willing to pay the 0 but I think it’s rediculous to pay what they are asking. By the end that 0 credit card will turn into a 00 when we finish paying it off with all the additional interest.
To those of you who feel like making me feel worse than I already do about this.. believe me I know it’s our debt and it’s our fault. If I could go back and just say no to the card offer I would, but I can’t. I have to deal with the situation at hand. We have actually paid off 4 of our 5 credit cards we had together. This is the last one. The other companies were so nice and really helped us pay them off. This one hasn’t been helpful at all. I am not looking for sympathy I am looking for help. If there is anyone who has been in this situation and knows how to at least minimize the damage I am looking for your input.
Of course they can do this or they wouldn’t be. I hate to say this but it’s your fault. I once paid my rent twice in one month by accident. I ended up paying over $450 in overdraft and daily fees. Unlike you, though, I let other things go to get my checking account straight. I think you’d better start looking for ways to save some money like brown bagging it to work, giving up eating out, using public transportation, taking on a part time seasonal job, whatever you need to do to get that debt paid off. In this day and age it’s foolish to use credit cards. Do whatever it takes to get out of all debt giving priority to the credit card bill via the law firm. It will take some time to wipe that bad debt off your credit score. And did you know that interest rates are determined by your credit score? The worse your score, the higher interest you’ll pay.
February 17th, 2010 at 10:06 amtell the lawyer and credit people to fuck off and take the $100 a month
February 17th, 2010 at 10:06 amhttp://bankruptcy.lifetips.com/cat/64900/creditor-harassment/index.html
February 17th, 2010 at 10:06 amhttp://www.bcsalliance.com/y_debt_sol.html
here’s a couple sights you can go to for more info.
what judge? Have you actually been sued and have a judgment against you? Is it really a law firm or a collector posing as a law firm. What are the guidelines for judgments against you in your state. If you agree to a settlement with a collector then you will be entering into a new contract. How are you still being charged over the limit fees on a closed account?
How long ago was the debt default? Has the SOL passed? Don’t deal with these people over the phone. Only deal with them by mail so you have everything in writing. Never take their word for it
February 17th, 2010 at 10:06 amcall the credit card company again and ask to talk to a supervisor. they may be able to help you .. hopefully you have been a long standing member, etc. that will be your best approach.
February 17th, 2010 at 10:06 amWhat they are asking for is not ridiculous and they can most certainly do what they are doing.
YOU are the ones who went over your limit. Read the fine print. There are usually hefty penalties for doing so. Then YOU stopped paying on the money YOU owed. There are also hefty penalties for missing payments. The longer you wait to make a payment the more you will owe. Eventually it will be turned over to collections. You will be taken to court and you will pay all the court costs and all their lawyer fees because it is YOU who is not paying your debt.
They can actually have an APR a lot higher than 24% for someone who went over their spending limit and then stopped making payments. It could easily be up in the 30% range.
February 17th, 2010 at 10:06 am