Been_Ponzied Posted August 21, 2012 Report Share Posted August 21, 2012 A collection agency doubled my debt for a Citibank card I defaulted on 5 years ago. Do I have any recourse? I am waiting the 7 years for it to fall off....I can't pay it and am judgement proof. Link to comment Share on other sites More sharing options...
1stStep Posted August 22, 2012 Report Share Posted August 22, 2012 Probably not... the default rate on CCs is upwards of 20%. this means every 5 years, the balance doubles. Link to comment Share on other sites More sharing options...
Been_Ponzied Posted August 22, 2012 Author Report Share Posted August 22, 2012 Probably not... the default rate on CCs is upwards of 20%. this means every 5 years, the balance doubles.Doubles by whom? The collection agency and what do they say its for? I'm not sure whether to send a debt validation or not. Link to comment Share on other sites More sharing options...
1stStep Posted August 22, 2012 Report Share Posted August 22, 2012 Interest accrues even though you aren't paying. Link to comment Share on other sites More sharing options...
momof5 Posted August 26, 2012 Report Share Posted August 26, 2012 Rule of 72. 72 divided by interest rate = doubling point of balance. Most default rates are 29.9%. 72/29.9 = 2.408. So in 2.4 yrs the balance doubles. It doubles again in another 2.4 years. (double from the double....$2K bal will be $4K then $8K).As another poster said, interest accrues even while in collections. You stated that this debt was defaulted 5 yrs ago. You are lucky is has only doubled....but, the balance is irrelevant if you have no intention of paying. I would look at your state's SOL. In FL, CC debt that is not a store card hits SOL at 5 yrs. At that point, one can rest easy....if they sue, they won't win.In the meantime, you have 2 more years of reporting to wait out if you do nothing else. Link to comment Share on other sites More sharing options...
Coltfan1972 Posted August 26, 2012 Report Share Posted August 26, 2012 The debt doubling sounds right in line. You asked who doubles it? It's the contract and your state law that determines the balance. After that, whoever owns the debt can attempt to collect whatever the ever changing balance is. Link to comment Share on other sites More sharing options...
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