lawsuit interest rates

[molly]

This has puzzled me for awhile. Why do some JDBS sue for outrageous interest and fees, and others go by the state usury laws after charge off. If they have to sue in your state, how can they be governed by the OC's state after charge off and sale to an in state JDB. I want to settle, but I'm afraid these int. rates are going to force me into BK. Then they will get alot less.

Am I governed by the state I live in or the state where the alleged OC is incorporated?

Thanks for any respones.

molly

[Lecasbas]

If you have one, take a look at the original contract/agreement which the debt was incurred under. This is what the JDB should be going by. These agreements usually allow for high interest upon default. By using the account, you originally agreed to this.

Somehow most of these agreements come about in Delaware which, I understand, is one of the most liberal states for JDB's et alia.

The JDB is required to sue in your state and once a judgment is rendered the lower state's interest comes into effect.

I would challenge the JDB's authority to collect. Most of them don't have enough evidence to support their claim. These guys are like car dealers. If you present yourself as a hard sell then the price comes cascading down.