investigate OC amount?

[findmyfreedom]

Hi,

This is my first post, so hopefully I searched enough before posting my question.

I have a line of credit that was opened in 2001 for an 84 month term. It has been through 2 mergers. Unbeknowst to me, the account balance that was supposed to be paid in 84 months has only gone down from $25k to about $23.5k in those 7 years (almost 7).

I have original statements from 2001 when this was incurred as well as the original 'offer' letter stating the terms. The account was opened over the phone so no "contract" was physically signed by me - just verbal authorization as well as the confirmation letter from the OC at the time. This debt now owned by it's 3rd owner through mergers.

Before I embark on this journey, what is the best way to approach this situation? I see the page about disputing with the CRAs first then asking for investigation (not validation). Is that the best approach? Given the fact that I have been making payments up until about 2 months ago? Just curious as it's not really the fact that there is negative reporting to CRAs but the fact that I question the 'balance' as I have made payments for about 6.5 years!

I was not aware until I researched how much I have been paying into this creditor in anticipation of making a settlement offer, that this loan should technically have been paid off! (I do know that I accesssed about $2k at some point in that 7 years, but to only have about $1500 credited when the original terms were 84 months? I don't know when the access was or if they reset the 84 month clock but I know very little is going to principal!)

Other pertinent info: I currently am part of the housing market failure. I had moved and my old home never sold. After 3 years of floating 2 homes with 401K money and the house not selling, I gave up. The house foreclosed (they wouldn't make a deal or accept deed in lieu, but the primary mortgage got covered. Awaiting to see if secondary mortgage will seek me out. Due to paying 401K loans and other debts, I can't meet monthly obligations. Beginning negotiations with all creditors that I stopped paying about 2 months ago. One already sent a 'negotiation' letter! Last resort it's BK, but trying to use info here first without attorney input. Unable to find a local attorney who will do anything with debt management, only BK or see CCS!

Please let me know your opinions!

Thanks!

[findmyfreedom]

* bump *

Clarifying that when I said 'without attorney input' means that I haven't found one locally that will assist in debt management or negotiation. Have only found ones that will file BK.

Would LOVE to have any opinions or thoughts on this topic regarding the 6.5 years of payments.

Thanks!

[swirlgirl]

You have every right to ask for a full accounting of your payments with a breakdown of principle and interest.

When you get a loan, the early payments contain a high ratio of interest as opposed to principle. So, if the payment is $500, over $400 could go to interest while a very little will go towards the principle. This is normal.

Just get the statements from your lender and see what's going on.

[CDL]

What was your interest rate? It sounds like it's very high but with an 84 month term, something's not adding up. Is there something else you're not telling us? I would still get my AG involved.

[torikid]

It may help to know more about the terms. Unless your interest rate was 30% plus, I cannot imagine the terms. Of course, if this was an adjustable rate like a credit card or something, they could have imposed tons of fees and increased the rate along the way.

I think more information about the type of loan, etc. I am getting the impression this was some sort of 2nd mortgage or HELOC?

[findmyfreedom]

It was an unsecured line of credit which paid off other creditors at the time. The 'terms' said 14.9% for 84 months on $25k. The interest rate has remained because every "change in terms" for jacking up the interest rate, I have sent notice of rejections over the years. As it was a long term debt, frankly I never kept an eye on the balance - (which was my own stupidity I guess.)

I think the problem lies in the fact that it was sold twice.

I'm going to ask in writing for an accounting of my payments.

I am trying to settle this account and they are willing to work with me (surprisingly!) but they are working from the $23.5K number and 'can't look at that information' according to the delinquency dept regarding the debt owed. Somehow that didn't seem quite an accurate statement to me either. However, the main customer service who could answer my questions refuses to allow me to record the call. I have found only when I record do I get a courteous exchange on the phone.

So I'm going to try the written route, but it's my understanding the OC isn't obligated to provide me anything.

Is that correct? They don't have to 'verify' or show me anything right? So I would next have to dispute with the 3 credit bureaus and see if the OC responds to investigation. Failing them being able to produce that accounting of all my payments, I THEN could go to the AG right? The AG won't do anything if I haven't disputed the account amount as being incorrectly reported under FCRA right?

[swirlgirl]

I think it's best to use a friendly approach with the OC. Just ask for your account, billing, and payment history. Don't quote law or statutes. It's been my experience that when I've used a courteous tone in my letters, they respond with fairly good customer service. I've gotten the info that I requested.

[torikid]

Let's hope they actually have the records. It sounds like your memory is really good, so could you possibly look through old statements to get an answer to your question of how and how much if they cannot locate it. Obviously, you want to take care of... as swirlgirl said, make sure they know that in your tone, but you concerns is how it became what it is. If you can locate your own personal records to help shed a light on it, of course that would be helpful as well.

[findmyfreedom]

nope, my memory isn't that good!

I always keep the original terms in my files. However, when I moved I shredded alot of statements which includes the middle years on this account. I probably have in stacks of stuff to get filed the 'newer' statements from the last 2 years. I'm missing the middle years!

I did however dig up the original terms when I was looking to propose a settlement figure only to discover to my surprise and amazement the fact I'd paid for 6.5 years with hardly any principal reduction.

I'm going to try a nice letter first requesting the info. Failing that, I guess it's dispute with CRA's and onward.

[torikid]

You know what is funny. I am a packrat for all reasons. Usually I just can't bring myself to shred or get rid of anything. Then, in the last 4 years, I went through an audit, a divorce and now redoing the divorce. I have needed so many stupid little papers back to 98. IT is crazy and now my packratism is justified. I just keep buying newer banker boxes to put things in by years. I wish I had the heart to shred, but then... I might need it in a decade. LOL

[CDL]

You know what is funny. I am a packrat for all reasons. Usually I just can't bring myself to shred or get rid of anything. Then, in the last 4 years, I went through an audit, a divorce and now redoing the divorce. I have needed so many stupid little papers back to 98. IT is crazy and now my packratism is justified. I just keep buying newer banker boxes to put things in by years. I wish I had the heart to shred, but then... I might need it in a decade. LOL

Packratism! I love learning new vocabulary here! I'm a packrat too, but an orderly, anal retentive one at that. You should feel how heavy my file cabinets are!

[torikid]

Packratism! I love learning new vocabulary here! I'm a packrat too, but an orderly, anal retentive one at that. You should feel how heavy my file cabinets are!

LMAO. Like that... huh?

Anal here too. So anal I can never get it done. I actually have to PAY someone to come help me organize my packratting. I am currently working on some advise to never touch a piece of paper twice. EWWWW.... I don't get anything else done. I have twelve filing drawer in my office and one portable box. I HAVE to have them all designated. My attorney is always impressed with what I can pull out as evidence. lol

Now, I even keep copies of what I send her so that if I have to pull it again, it is in a darn binder. My point, sometimes I am so anal that I cannot get it completed.

[CDL]

LMAO. Like that... huh?

Anal here too. So anal I can never get it done. I actually have to PAY someone to come help me organize my packratting. I am currently working on some advise to never touch a piece of paper twice. EWWWW.... I don't get anything else done. I have twelve filing drawer in my office and one portable box. I HAVE to have them all designated. My attorney is always impressed with what I can pull out as evidence. lol

Now, I even keep copies of what I send her so that if I have to pull it again, it is in a darn binder. My point, sometimes I am so anal that I cannot get it completed.

My wife refers to my packratting as, organized chaos! 12, damn you got a problem! I thought I was bad with 4 tall and 1 small!