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chicamarie

Question about CACH and old US Bank CC, interest overcharge?

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I received a letter today from CACH, everyone's best friend, and was sure it was something bad.  Back in April of last year I actually settled an old US Bank CC account with CACH because I had just been sued by Unifund and hadn't found this board yet.  I panicked when I realized I might have two lawsuits on my hands and it was very small compared to the other account.  So, I made it go away.

 

In any case, the letter says that new information about the account has surfaced, that I was overcharged by US Bank as far as interest added, and that any amount calculated to have been overcharged would be credited to my account, and if it left a balance on my account that I would be issued a refund (I'm picturing something along the lines of $8.63 or thereabouts, ha ha).

 

How on earth does that work for an account that was charged off and sold?  I imagine that they want to avoid any litigation directed their way, but it seems odd that I could possibly be refunded anything from an account that was sold at a loss, basically.  Not that I feel sorry for US Bank or anything.  I'm also a member of a class action lawsuit against them for their overdraft policies from the early 2000s.  Again, I'm picturing awards in single digits!

 

I haven't heard anything from US Bank, FWIW.

 

 

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The letter says they "purchased" this account from US Bank.

 

And actually now that I read this letter more closely, it says that CACH has credited this amount to my account, which is now the CACH account.  It says "If this credit results in a credit balance to your account, a refund check will be sent to you."

 

So, if we settled this account for less than the balance due, are they required to send me any refund?  I can't imagine they would be legally required to although there must be some rule about that somewhere.  Weird.  Although I'd love to get paid by a JDB any way I can.  So far I've only been on the losing end :(.

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Of course they did 1099 me for the balance after settling, which would mean I could come back at them via the tax problem created when the balance is lower than what they 1099'd me for.   

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All sounds highly suspicious.  I'd suggest you just wait to see if a check shows up, and if it does...unless it for $100's, I think I'd just file it away with that letter.

 

I can't think of any negative ramifications to cashing their check...but on the other hand I can't see them giving up money.

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I got curious so I did some searching.  There have been some suspicions about CACH using this ploy to gather banking info.  The unsuspecting recipient deposits the check to their account and CACH gets data.

 

So...sit on it...or cash it outright, but don't put anything more than your signature on the back.

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