Jump to content

late fees after collection


cjtx
 Share

Recommended Posts

I need help trying to understand this.

HSBC sent an account to a CA in Feb, 2002, but continued to assess late fees every month, even though I did not make any payments in over 8 months. It sent it to one or 2 other collectors during 2002.

This kept going on, padding the account with late fees until december 2002, when they sold it to a JDB.

Both HSBC and this JDB report the amount from December '02 statement, which includes late fees during collection.

Are they misrepresenting the amount of the debt or can they still charge late fees and over the limit fees?

Link to comment
Share on other sites

I wish I still had my agreement, but I don't think I kept it.

I understand their charging some default interest, but as far as other fees like over the limit and late fees... it just doesn't make any sense. A collection account doesn't have a credit limit, so there is no over the limit fee.

Link to comment
Share on other sites

my question to everyone is if you go to court do they have to account for how they calculated their amount?

you need to request the bill of particulars during discovery and in your answer to the complaint you need to make it very clear that you disagree with the amount requested and that you demand strict proof.

Link to comment
Share on other sites

Household had a lot of accounting problems around this time. They declared my (alleged) account in default 03/01 and turned it over for collection but charged me late fees for the next 9 months. The one year free interest period lasted about 8 months. Go to Householdwatch.com and check out some of the ways they mishandled accounts and see if any relate to you. I've seen a case where someone challenged Household on the late fees after default; I'll look through my notes tonight. Apparently Household destroyed a lot of records before their merger with HSBC Bank; I was sued and the JDB's lawyer eventually dropped the case because (I assume) he had no documents.

Link to comment
Share on other sites

I disputed with the CRA and they verified. I then sent them (HSBC) a letter requesting proof (since they verified) that it was my account since i had no knowledge of the account. Account was reporting as HSBC so the moral/ethical guilt was not too much to say I never had an account with HSBC.

They remove the negative entry and sent me a letter stating that i am not responsible so i have that letter to send off to wolpoff and Abramson next time the blood suckers resurface.

Request a signed contract and payment history showing that it is indeed your account. It worked for me. Use the letter on top "Dispute with Original creditor." Remove all the legal stuff that is meant for thier legal department and see what happens. I worked for me.

good luck.

Link to comment
Share on other sites

This site has several interesting articles, including one titled "Default Interest Rates, Late Charges and Exit Fees: Are They Enforceable?"

http://www.firstam.com/listReference.cfm?id=5574

Great info, thanks!

Some of the things may apply, but most of the info is related to mortgages as opposed to unsecured loans and many of the articles are geared towards commercial real estate.

My OC kept the account open for over a year, even though it sent it to collections, etc., but it kept adding late fees until it sold it.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.