needhelp Posted January 25, 2009 Report Share Posted January 25, 2009 It has been 4 years as of today since I last made a payment on a Chase Visa. I quit making payments because they felt I deserved the Universal Default Rate ( from 9.9 to 29.99) I was never late or missed a payment when they did this. I live in Texas and the Statue of Limitations is 4 years. I haven't heard anything from Chase in a year, no collections or Civil Cases on file in Hunt county. I read the Credit Info center article on SOL and found this...When does the Statute of Limitations start?"You might be asking yourself, "It has been such a long time since my "open account" has had any activity. When does my Statute of Limitations started ticking." The statute of limitations (SOL) is calculated by: Take the date you last made a payment and add 6 months to this date. Add the number of years of the statute of limitations in your state. "My question is, has anyone seen this to be the case? I thought at midnight tonight I would be celebrating. Do I have another 6 months to go? Just curious what you Legal Minds think.Thanks for the help Link to comment Share on other sites More sharing options...
willingtocope Posted January 25, 2009 Report Share Posted January 25, 2009 Since SOL is a state law, each state has "new and improved" the language of the law. Find and read the specific texas law governing CC SOL's. Link to comment Share on other sites More sharing options...
swirlgirl Posted January 25, 2009 Report Share Posted January 25, 2009 I quit making payments because they felt I deserved the Universal Default Rate ( from 9.9 to 29.99) I was never late or missed a payment when they did this.So you stopped paying your bill just because you didn't like the rate? No financial harship, no job loss, no sick child, no dying mother? Um, okay?!?!?! Link to comment Share on other sites More sharing options...
wahoo238 Posted January 25, 2009 Report Share Posted January 25, 2009 Sec. 16.004. FOUR-YEAR LIMITATIONS PERIOD. (a) A person must bring suit on the following actions not later than four years after the day the cause of action accrues:(1) specific performance of a contract for the conveyance of real property;(2) penalty or damages on the penal clause of a bond to convey real property;(3) debt;(4) fraud; or(5) breach of fiduciary duty. Link to comment Share on other sites More sharing options...
needhelp Posted January 25, 2009 Author Report Share Posted January 25, 2009 I tried for 10 months to get Chase to meet in the middle and come down on the interest rate. They would not budge so that is why I stopped paying them. I was with them for 12 years when they were Bank One. When Chase bought the they started the 29.99 rate. Loan sharking is illegal and immoral that is why I stopped paying them. They could never validate the debt through four collection agencies. I told them I would pay exactly what I owe and nothing more they declined, so I stopped paying. What would you do if this happened to you? Link to comment Share on other sites More sharing options...
willingtocope Posted January 25, 2009 Report Share Posted January 25, 2009 You probably do have a point. Not a legal point that would stand up in court, but universal default is certainly an underhanded trick the CC play.You do need to realize the even if the SOL has expired, you still owe the money and they can still try to collect. You may yet get a chance to defend yourself in court... Link to comment Share on other sites More sharing options...
swirlgirl Posted January 25, 2009 Report Share Posted January 25, 2009 I tried for 10 months to get Chase to meet in the middle and come down on the interest rate. They would not budge so that is why I stopped paying them. I was with them for 12 years when they were Bank One. When Chase bought the they started the 29.99 rate. Loan sharking is illegal and immoral that is why I stopped paying them. They could never validate the debt through four collection agencies. I told them I would pay exactly what I owe and nothing more they declined, so I stopped paying. What would you do if this happened to you?[/If I had a dispute with a credit card company and we could not resolve it, then I would have closed my account and paid the balance due. The outstanding balance, money that you spent, had nothing to do with the rate. Had you paid that when the account was closed, you would not have had to go through all of the collection agencies.Bad rates did not absolve you of this debt. To each his own. Link to comment Share on other sites More sharing options...
OMGWhatHaveIdone Posted January 26, 2009 Report Share Posted January 26, 2009 I tried for 10 months to get Chase to meet in the middle and come down on the interest rate. They would not budge so that is why I stopped paying them. I was with them for 12 years when they were Bank One. When Chase bought the they started the 29.99 rate. Loan sharking is illegal and immoral that is why I stopped paying them. They could never validate the debt through four collection agencies. I told them I would pay exactly what I owe and nothing more they declined, so I stopped paying. What would you do if this happened to you?So..... you essentially cut off your nose to spite your face? Refusal to pay on a debt you own because you didn't like the interest rate hike was a wreckless thing to do, IMO. If this had happened to me, like swirl, I would have closed the card and paid the balance or had it transferred to a better card with a better rate. And.... I would have called the CC co. and let them know that I had plans on telling everyone who I knew had a card with them, to do the same thing. Ya catch more flies with honey than with vinegar. In this case, knowing that a decision like the one you made, will most definitely have a negative impact on your credit score, it's not a decision I would have ever made. Link to comment Share on other sites More sharing options...
needhelp Posted January 26, 2009 Author Report Share Posted January 26, 2009 Just bought a brand new 2009 Chev, interest rate of 4.99....not badGot a BOA Visa at 8.99.....Not badI am in a three year old house bought new at 5.00....not badLow credit score...Yes....lenders see through Chase ripoff.....YesPS: 4 years solid SOL in Texas no 6 month extension. They can try to collect but they cant get a dime. Chase should have met in the middle instead of being greedy. PSS: I am the only one on this board that walked away from a debt...dont think so. dontneedhelp Link to comment Share on other sites More sharing options...
willingtocope Posted January 26, 2009 Report Share Posted January 26, 2009 Well, I would have to say that most people on the board here that walked away from debt didn't take on the debt with the intent of defaulting on it. I would also say that you do not appear to have taken it on with the intent of defaulting. So, I for one, have mixed feelings about all this. It was your debt, but you're right that the "universal default" crap is legal highway robbery. Part of me says, I'm glad you got over on them.On the other hand...realize this isn't over yet. The SOL only means that if they take you to court, and you show up, and raise the SOL as a defense, and the judge agrees, they don't win. It doesn't mean you don't owe it, and it doesn't mean they won't continue to try to collect, and it doesn't mean they won't sell it to a JDB who will come at you. You also should look forward to a 1099c, on which you'll get to pay taxes. And, I'll bet they include the entire amount of interest and penalities so you get to try to convince the IRS that you didn't owe all that. Link to comment Share on other sites More sharing options...
cap1kid Posted January 26, 2009 Report Share Posted January 26, 2009 Way to go needhelp- who is offering you a bailout? I believe that Chase got 29 billion dollars of taxpayers money that you had no say in. Crap1 did the same thing to me- late fees leading to overlimit fees- default interest- I walked- I would have gladly paid the $750 I owed them- now its ballooned to $3000? Steal a little and they throw you in jail- steal alot and they make you King! Link to comment Share on other sites More sharing options...
Aerovette Posted January 27, 2009 Report Share Posted January 27, 2009 Kudos to the OP. I did the same. I received a letter many years ago telling me that because of an item on my credit report, they were changing my rate from 13% to 29.99. I immediately called and asked about my payment history. In three years I never missed a payment and for the last 10 payments made double payments. The customer service person told me they could not do anything. It was changed because I missed a couple of house payments during a bout of unemployement. Right or wrong, I chose to take a house payment and divide it across all my other debts and keep 6 people at bay while only upsetting one. I told them they should be thankful I chose to pay THEM instead of my house note. I told them to change it back and I will pay every penny due for the rest of my life if necessary. Leave it at 29.99 and you will never see another dime. They said they can't and I said you can, but you WON'T. I stopped paying them and have NO regrets. I would do the same again if it happened. I vowed that I would NEVER send them a dime and would rather pay a lawyer 10 times the amount as a matter of principle. My principle and self respect remained intact and they can choke on the debt for all I care. It was punsihment that was undeserved. I took it as getting fired from my current job because I was LATE to my part time job. That bad pay record was between me and the mortgage company...no one else. Link to comment Share on other sites More sharing options...
DB_Cooper Posted January 27, 2009 Report Share Posted January 27, 2009 You also should look forward to a 1099c, on which you'll get to pay taxes. And, I'll bet they include the entire amount of interest and penalities so you get to try to convince the IRS that you didn't owe all that.Actually, he might have skated on that 1099c, but if not, the taxes on the amount owed will likely be less than just the interest rate they were demanding. Time will tell.Barring the aggravation of having an open collection on his CR, I'd say he's ahead. Link to comment Share on other sites More sharing options...
DB_Cooper Posted January 27, 2009 Report Share Posted January 27, 2009 If I had a dispute with a credit card company and we could not resolve it, then I would have closed my account and paid the balance due. The outstanding balance, money that you spent, had nothing to do with the rate. Had you paid that when the account was closed, you would not have had to go through all of the collection agencies.Bad rates did not absolve you of this debt. To each his own.It seems like dueling Karma to me.They tried to stick him with a B.S. "default" rate, just because they could, and he in-turn stuck them with an ACTUAL default in return, just because he could.To me, that whole episode has a poetic symmetry to it.Kudos to the OP as well. Link to comment Share on other sites More sharing options...
needhelp Posted February 10, 2009 Author Report Share Posted February 10, 2009 You were right I did get a 1099 for the forgiven debt. The taxes I'll have to pay are a whole lot less than the forgiven amount. Good thing is I have been saving for just this. SOL expired and 1099 just try to collect!!!! I am a happy person. Link to comment Share on other sites More sharing options...
cracrap Posted February 11, 2009 Report Share Posted February 11, 2009 It seems like dueling Karma to me.They tried to stick him with a B.S. "default" rate, just because they could, and he in-turn stuck them with an ACTUAL default in return, just because he could.To me, that whole episode has a poetic symmetry to it..you know, this makes me laugh, this truly is symmetryhowever i dont suggest that we start to pull wings off of butterflies... Link to comment Share on other sites More sharing options...
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