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SO Confused about Cap1 Chargeoff


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I have a Capitol 1 charge off. This was charged off in June 2006. I had a balance due at the time of $2541.00. I was summoned in Jan. 2008 by a Law firm saying they represented them (they were trying to collect for some time). Their demands $2541.54 plus interest and attorney fees total $3903.35. This is the amount showing up on my credit reports. I was still in my finacial denial stage and ignored the summons. Well I dont know what happen in court but they never bothered me again. I just started getting letters and phone calls from another CA recently . 1) Can Capitol one (they are named as the Plantiff)still sue 2 years after charge-off? 2) IF they lost in court can they still charge me attorney fees? 3) When Does interest stop being placed on a collection account?

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1] Yup. The SoL in New Jersey for credit card debt is 3 years (6 years if the account is considered written)

2] They didn't loose. If you didn't show up for court, you automatically loose and the judge gives them whatever they asked for.

3] It doesn't. Now that it has been reduced to a judgment you have to pay interest at a rate set by the government (currently that is 5.5% but it changes each year as the NJ Treasury decides). And now that it is a judgment, they can go after you for the next 14 years, which is the statute of limitations on judgments in New Jersey. They can also levy bank accounts and your wages until the debt is paid and charge you for any further collection costs without any extra court action.

Not showing up for court was a huge mistake.

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Judgments can be sold to others for value. These are more dangerous for the consumer because once reduced to judgment, the CA doesn't have to go to court to levy bank accounts or garnish wages. That part of the process is already done.

Your best bet right now is to attempt to settle this for less than the full amount. I strongly recommend, from your past legal mis-steps, that you pay a lawyer to negotiate a settlement for you. And then pay it prompty. If you cannot afford to pay a lump sum of any kind (even if it is half) then have your lawyer negotiate a structured settlement and pay the installments promptly and on-time. That way you know it won't come back to haunt you down the road.

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I received a summon that I was being sued back in Dec. 07. It said I had 35 Days to respond but I never received a notice to appear nor did I receive and notice that a judgement had been entered. I do want to settle this afterall it is the last of my credit issues to resolve. All my other creditors were willing to work with me within my budget but these people turned down every payment offer I could make.

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Pardon me for getting harsh here....

CALL THE COURTHOUSE! CALL THE COURTHOUSE!

How many times do you have to be told?

Sometimes LEXISNEXUS fails to report that you have a judgment so you don't end up with a public record on your CR...but that is RARE. Most often, if there is no PR, there is no judgment and the ONLY way you will find out is to check with the Clerk of the Court.

Got it?

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