TheCatSite.com › Forums › General Forums › The Cat Lounge › Know anythig about Debt collecters?
New Posts  All Forums:Forum Nav:

Know anythig about Debt collecters?

post #1 of 10
Thread Starter 
So I had my credit Union run a credit report last week. I was trying to get pre-approved for a auto loan.

Loan denied because of some stupid credit card I opened when I was 23-24? it was a 300 dollar credit card. Well, I was young and stupid and never paid them back.

Well my credit report shows that I owe them 3000 dollars! Holy moses!

I just don't get it. I have live in the same place for the past 5-6 years. I have not recieve one letter about this issue. I don't think I am hard to find. I have been employed consistently for the past 3 years. Paid my taxes.

Now I have to call them today. People have said that they will reduce the amount. But by how much? What is reasonable?

Anyway have suggestions? I need to try to get them low enough so I can pay it in full today. I was thinking offering them 600 dollars. It that reasonable?
post #2 of 10
But do you really owe them anything or is it a clerical error perhaps? I'd be calling them to see exactly what is up before offering them any money!
post #3 of 10
Don't give them any money. They have to prove that you owe that much- and do this in writing within 30 days of your request. $3000 on a $300 is nuts. Is it Allied Interstate by chance?
post #4 of 10
That ammount does seem rather extreem. I just paid off some bad credit today. It was a paypal credit account for $200 that I never paid on. I did get notices though as the interest racked up so I knew what I was in for and take full responsibility. Still, after 2 years of non-payment they closed my account (no more interest charged etc.) and sent it to collections. The ammount I paid to clear it today was about $560. I felt that even that was excessive but about a year ago they offered me a deal ($400) if I could pay in full but I couldn't.

If they won't negotiat with you, you might try contacting a debt colsolidation company to see if they(the creditors) will negotiate with them.
post #5 of 10
I find it hard to believe that this CC company hasn't tried to contact you!!
You would think they would have wanted the money.
Anyhow I would contact them-talk to a supervisor and try to figure out what is going on. I would not offer any money at this point until you get some proof of this debit and their efforts to contact you in writing.
post #6 of 10
Okay I'm going to talk about this from a banking perspective so if you don't understand something just ask. I'll clear it up.

When you call them and ask for a settlement you are going to have to pay taxes on the amount you didn't pay. It will be considered additional income by the Federal government. What I'm saying here is be careful. You are going to end up paying them a lot more than just $600.00 if you set up a settlement.

How long ago was this debt charged off? If it was more than ten years ago it shouldn't be showing up on your credit report. If it's "Zombie Debt" http://www.pfadvice.com/2006/08/21/zombie-debt/ it's illegal and you can dispute it with the credit bureaus.

Lastly, do NOT call the collection agency until you have your ducks in a row. You need to research this issue before you even play with the idea of paying it back.

EDIT: Because you were declined for a loan you are entitled to a copy of your credit report for free. Send away for it to start any type of dispute process.
post #7 of 10
The people you actually owed that money to have probably written it off by now. They've probably "sold" the debt to a collection agency -- and that agency has jacked the amount up tenfold in the hope that you'll be naive enough to pay more than you actually owe.

Here's the thing, though: even if you paid them off, they would make no effort at all to clear your credit. These are not reputable organizations, and the people you talk to on the phone are not trained or empowered to "resolve" your debt -- they're just sitting there on a phone bank with a script designed to intimidate you into sending them money.

If the money would go to the people you actually owe it to, that would be fine. But it won't... and your credit will almost certainly remain just as it is until the seven years are up and you can get it cleared yourself.

I say all this because I once joined a health club. [Go ahead, laugh -- I deserve it.] The place became intolerable -- sewer gas permeating the whole building, people getting infections from the whirlpool tub, equipment rusting and literally falling apart underneath people, and the doors frequently locked during hours when it was supposed to be open.

This was a clear violation of the contract, and almost the entire membership tried to cancel -- but the management wouldn't accept it. I don't know what others did, but I sent a letter of explanation and stopped paying. Long story short: to this day -- almost twenty years later -- I still receive letters and even phone calls demanding payment every time the supposed debt is sold to some new collection agency.

In my experience, it's just hopeless. I'd give the $300 to charity.

________________

EDIT: Lookingglass posted while I was writing, and it sounds like she knows a lot more about the legal aspects than I do, so forget my seven-year number and listen to her!
post #8 of 10
Quote:
Originally Posted by CarolPetunia View Post
The people you actually owed that money to have probably written it off by now. They've probably "sold" the debt to a collection agency -- and that agency has jacked the amount up tenfold in the hope that you'll be naive enough to pay more than you actually owe.

Here's the thing, though: even if you paid them off, they would make no effort at all to clear your credit. These are not reputable organizations, and the people you talk to on the phone are not trained or empowered to "resolve" your debt -- they're just sitting there on a phone bank with a script designed to intimidate you into sending them money.

If the money would go to the people you actually owe it to, that would be fine. But it won't... and your credit will almost certainly remain just as it is until the seven years are up and you can get it cleared yourself.

I say all this because I once joined a health club. [Go ahead, laugh -- I deserve it.] The place became intolerable -- sewer gas permeating the whole building, people getting infections from the whirlpool tub, equipment rusting and literally falling apart underneath people, and the doors frequently locked during hours when it was supposed to be open.

This was a clear violation of the contract, and almost the entire membership tried to cancel -- but the management wouldn't accept it. I don't know what others did, but I sent a letter of explanation and stopped paying. Long story short: to this day -- almost twenty years later -- I still receive letters and even phone calls demanding payment every time the supposed debt is sold to some new collection agency.

In my experience, it's just hopeless. I'd give the $300 to charity.

________________

EDIT: Lookingglass posted while I was writing, and it sounds like she knows a lot more about the legal aspects than I do, so forget my seven-year number and listen to her!
You need to contact the credit bureaus and tell them to remove it. Also, threaten legal action against the debt collection agencies that call you. If its older than 10 years they can't collect. Period.
post #9 of 10
Yeah, they suck.
post #10 of 10
Quote:
Originally Posted by luvmycat1 View Post
Yeah, they suck.
That's what I was thinking.

I had one call me last year and I settled for less than what I owed... at least I thought I did. After reading these posts, I'm not sure they ever took it off of my credit report. I should do my yearly check on it soon. I also saw something on there from our local electric company, but it was from 1998. I didn't move out of my parents house AT ALL until 1999. So how do I have a debt on there from 1998? I never did look into that. Maybe I will try that one too.
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: The Cat Lounge
TheCatSite.com › Forums › General Forums › The Cat Lounge › Know anythig about Debt collecters?