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2nd CA collecting interest and fees of 1st CA?


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Hello. I just recieved a letter from a ca who bought my debt from another ca. I have neglected my credit for some time, so I have a few accounts that all became deliquent with about a $2000 balance, just as this one had.

What irks me about this account is they're asking me to pay over $9,000, which I'm sure includes the fees the first ca was unable to collect. (this is $6000 over any other account listed on my report anywhere)

My question is: What are the rules regarding what they are able to collect? Are they able to ask me to pay all these fees? Credit agreements state "you agree to pay collection fees" is that a capless, sky's the limit statement?

I am disputing this in my credit file, and in my DV letter asked for a record of the accounting and fees to justify the amount they're asking me to pay.

Is the credit agency obligated to provided with such information?

It just doesnt make sense to me that they would be able to send me a letter, tell me to pay a huge amount of money, and not have to back it up or prove anything regarding the account..

Does anyone know what term I need to google to get federal and state laws on this subject? All my efforts so far have been futile.

Thanks for any help guys.

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Hello. I just recieved a letter from a ca who bought my debt from another ca. I have neglected my credit for some time, so I have a few accounts that all became deliquent with about a $2000 balance, just as this one had.

What irks me about this account is they're asking me to pay over $9,000, which I'm sure includes the fees the first ca was unable to collect. (this is $6000 over any other account listed on my report anywhere)

My question is: What are the rules regarding what they are able to collect? Are they able to ask me to pay all these fees? Credit agreements state "you agree to pay collection fees" is that a capless, sky's the limit statement?

I am disputing this in my credit file, and in my DV letter asked for a record of the accounting and fees to justify the amount they're asking me to pay.

Is the credit agency obligated to provided with such information?

It just doesnt make sense to me that they would be able to send me a letter, tell me to pay a huge amount of money, and not have to back it up or prove anything regarding the account..

Does anyone know what term I need to google to get federal and state laws on this subject? All my efforts so far have been futile.

Thanks for any help guys.

I think the rule is if they buy the debt they can't add interest and fees, but if they are assigned they can.

However, these fees are obviously excessive and I would definitely say it's usurious. If this went to court, I'd be claiming unjust enrichment as a defense.

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I think you may be jumping ahead here just a bit. The first thing is going to be following the process of Debt Validation and determining if it is SOL, not yours, etc. Treat them as any other Junk Debt Buyer as they have represented that the purchased the debt and it means they are very unlikely to be able to prove a thing. Most JDB go away when you DV them.

If you think you may end up in court over this either you sueing them or them sueing you, then after you send a DV you can begin researching. Start by searching for "Chain of Title" on these boards. The JDB have a vey hard time proving they have actually purchased a valid debt. If they have not actually purchased the debt, then they have misrepresented to you the status of that debt. Although many JDB are slime balls and will lie to get money, I can not see one of them bothering to say they purchased a debt when they have not since it is likely to not gain any advantage. It could happen, just very unlikely.

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