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Can CA continuously add interest to Bad Debt?


Lecasbas
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The OC's Bad Debt began at $400. They sold it to a CA at $800. In a matter of days after the sale it's $1000.

It could be easily assumed that the OC tacked on late charges plus interest. Now I believe the CA is applying interest.

I understand I need to DV them to be certain of the unknown charges - and I will.

For now I pose this question:

We all know that an OC or CA most likely will not pursue legal action for $1000. Can the CA continuously add interest month after month, year after year until the Bad Debt has reached an amount worth their going after?

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What I know about all this is that first the original creditor ovbiously brings you too a certain collection agency in there office first before sending it to collections...they do not hassle you for it b/c the credit card companys want to look as if they are the good guys...which in all reality they are adding on tones of interest and late fees but they are interest and late fees you agreed too at the time of getting the card im sure you understand that...once they no longer get payment it is now sent to a collection agency and yes depending on the original creditor they can keep putting on interest after interest...even tho it is in a collection agency and the original creditor pretty much sold it to them they still in a way have control over it...I know certain credit card companys completely make sure the interest stops when it gets to collections and no more is added on...other credit card companys keep the interest going while its in collections and yes it can go on for years and years but also remember the account will only stay in a certain collection agency for so long...after a period of time it may stop accuring interest but not always...they can pretty much do whatever they want...the most important thing is to study the collection agency that your account is in...all collection agency's are diff....also remember you have tones of power...there are many laws protecting you as a person...lots of laws people dont know about...anyways they do stop late fees once it goes to collections i know that....never beleive what a creditor says at a collection agency and make sure you have proof for everything you do...never pay something without a fax of the agreement...and remember settlements b/c they are the key...the collection agency wants the money and they are willing to go under alot just to get some portion of it...ovbiously you dont want to say you will pay 100 on a 1,000 cc that is just not going to happen....be reasonable with them....

The OC's Bad Debt began at $400. They sold it to a CA at $800. In a matter of days after the sale it's $1000.

It could be easily assumed that the OC tacked on late charges plus interest. Now I believe the CA is applying interest.

I understand I need to DV them to be certain of the unknown charges - and I will.

For now I pose this question:

We all know that an OC or CA most likely will not pursue legal action for $1000. Can the CA continuously add interest month after month, year after year until the Bad Debt has reached an amount worth their going after?

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I understand I need to DV them to be certain of the unknown charges - and I will.

Keep the DV letter simple. Don't use the words "cease and desist".

"I pulled my credit report, and I see you claim that I owe you a debt. In accordance with FDCPA, I request validation of this debt."

Can the CA continuously add interest month after month, year after year until the Bad Debt has reached an amount worth their going after?

Like SAW said, it will depend upon what's in the original contract signed with the OC. But you're getting WAY ahead of yourself. Just follow the DV flowchart, for now. It's a sticky in the DV forum.

And, some light reading material.

http://www.debt-consolidation-credit-repair-service.com/forums/showthread.php?t=264049

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ovbiously you dont want to say you will pay 100 on a 1,000 cc that is just not going to happen....be reasonable with them....

Wow. Reason w/a CA! I'm getting more and more suspicous of this person.

They buy the debt for pennies on the dollar and then charge YOU thousands and we're supposed to reason w/them? They probably bought this $400 debt for less than $50. You're killin' me! :urcrazy:

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I guess i dont know that side of it..i dont know what they pay for it..your right it could be that little and if it is ...i would freak out...i know if they did that would piss me off...honestly i knew they got a discount but didnt think it could be that little...but im sure your right the CA is trying to make the most they can...wrong again its me..lol im gonna shutup now!! thanks

Wow. Reason w/a CA! I'm getting more and more suspicous of this person.

They buy the debt for pennies on the dollar and then charge YOU thousands and we're supposed to reason w/them? They probably bought this $400 debt for less than $50. You're killin' me! :urcrazy:

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I think i have strong beleifs on paying your bills and its hard for me to get that out of my head my mom drilled in me to pay my bills b/c your credit is your life. I understand people who get into situations where they are just not able to..but what makes me mad is we as a country are in debt like crazy. I know there are people out there that just get a cc to have one without having a job and everything. That is wrong to me. I think cc companys need to have restrictions on them but of course they are not going to b/c cc everyday are killing people. There needs to be more enforcement on what can happen with them and the troubles of them. Just my opinion!

Wow. Reason w/a CA! I'm getting more and more suspicous of this person.

They buy the debt for pennies on the dollar and then charge YOU thousands and we're supposed to reason w/them? They probably bought this $400 debt for less than $50. You're killin' me! :urcrazy:

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I think i have strong beleifs on paying your bills and its hard for me to get that out of my head my mom drilled in me to pay my bills b/c your credit is your life. I understand people who get into situations where they are just not able to..but what makes me mad is we as a country are in debt like crazy. I know there are people out there that just get a cc to have one without having a job and everything. That is wrong to me. I think cc companys need to have restrictions on them but of course they are not going to b/c cc everyday are killing people. There needs to be more enforcement on what can happen with them and the troubles of them. Just my opinion!

Does this make it clear to you what JDB and CA pay for debt.

http://www.bid4assets.com/auction/index.cfm?auctionid=305489

I am totall willing to pay my debt but i am not paying a nickel more than I used and If the OC cant accept that money then too bad, CA out of luck.

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OMG I didn't know they had auctions to sell debt!

Chilton1, I agree with you 100%. I have no problem paying what I owe, but I REFUSE to pay an overinflated amount. My Crap1 CO's are now double than what they were. How is this legal?

And yes people do get into all kinds of circumstances that cause severe debt. Sometimes it is circumstances beyond their control. Then there are just all out deadbeats that do it just because, and never have any intentions of paying. I am trying to right my wrong but Crap1 is tying my hands behind my back.

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Originally posted by I HateCAs

Don't enter contracts that make you responsible for interest then.

By the time a Bad Debt reaches the CA, years have gone by. In today's world I don't think anyone signs a contract for a cc anymore. The cc companies send a pamphlet with the original invitation. If you apply on the phone or internet you sign nothing. Using the card, I believe, is agreeing to whatever contract the cc sent.

As the years pass by, the cc company sends changes to the contract. Again, if the user continues to charge on the cc the changes are agreed to.

After 5, 10 or 15 years of updates, can anyone, including the OC or CA, come up with the original contract and all the changes?

Maybe after 5. It gets a little foggy after that for everyone except the most astute.

That being said, can a debtor successfully demand complete verification from the CA of the ever-changing contract or is it an issue for the courts?

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That being said, can a debtor successfully demand complete verification from the CA of the ever-changing contract or is it an issue for the courts?

The FDCPA is what it is:

§ 809. Validation of debts

(a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing --

(1) the amount of the debt;

(2) the name of the creditor to whom the debt is owed;

(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;

(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and

(5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.

(B) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.

© The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer.

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I've read the FDCPA several times and this is a synopsis of what I get:

If you request DV within the 30 day period the CA must tell you the amount of the debt, the current creditor, the OC and provide verification of the debt

It was SecretAgentWoman who earlier suggested that my answer to, "continuously adding interest to debt", would be in the contract.

The answer is only in the original contract/agreement with the OC, I believe

I think anyone should be able to demand copies of the contracts or agreements which the CA says they are authorized to collect a debt. In my humble opinion, I don't think the FDCPA helps in that quest. The wording is much too vague.

So, if the CA won't sent me contracts through DV what can I do?

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