CC issued while underage - unpaid, in collection

[DING]

What is the name of your state? West Virginia

I was issued a credit card (by Providian) when I was 17. I initially used the card to rack up debt from online gambling while also under 18. However, my last purchase was made for a $1600 car engine. The engine was a gift but it was made over the internet and a credit card was required, so the gifter paid off my credit card and I made the purchase using the credit card (after 18).

I could not make the payments... the card went over the limit... fees racked up and my account was closed and sold to collections. It's now 6 years later and I need to clear up the matter. I got a credit report and there is a collection agency that says I now owe $4500+.

What is the best way to handle this?

Do I have any recourse with Providian for issuing me a card while I was under 18 and enabling my gambling (which wouldn't have occurred without a valid credit card)?

If I try and settle with the collection agency will they be willing to accept the original card balance, or even less?

Thanks!

[racer72]

Do I have any recourse with Providian for issuing me a card while I was under 18 and enabling my gambling (which wouldn't have occurred without a valid credit card)?

The day you turned 18 you became liable for the things you did as a juvenile. You are also liable for any debts you incur after you turned 18.

If I try and settle with the collection agency will they be willing to accept the original card balance, or even less?

Won't hurt to ask, all they can say is no.

[moburkes]

You would have been able to dispute it, BUT you also would have been required to return the engine and the gambling money.

Its not one-sided.

I, too, had a credit card when I was under 18. No big deal.

[MAYFIELD6]

I recommend that you verify the statute of limitations for your state. Since it has been six years , you may not need to "negotiate". Although it will remain on you credit report for 7 years. You can use GOOGLE to locate the statutes for West Virginia.

Good Luck
MAYFIELD6

[moburkes]

Originally Posted by MAYFIELD6

I recommend that you verify the statute of limitations for your state. Since it has been six years , you may not need to "negotiate". Although it will remain on you credit report for 7 years. You can use GOOGLE to locate the statutes for West Virginia.

Good Luck
MAYFIELD6

You're right to suggest that. I took it differently - that although he got the card at 17, he has some recent charges. You took it to mean that all of the charges are old.

Good point that I missed.

[DING]

Originally Posted by MAYFIELD6

I recommend that you verify the statute of limitations for your state. Since it has been six years , you may not need to "negotiate". Although it will remain on you credit report for 7 years. You can use GOOGLE to locate the statutes for West Virginia.

Good Luck
MAYFIELD6

I'm not sure that I understand. Ok, I'm sure that I don't!

Could you explain why I wouldn't need to negotiate?

Also, what should I search for within the West Virginia statutes?

Thanks.

[DING]

Originally Posted by moburkes

You're right to suggest that. I took it differently - that although he got the card at 17, he has some recent charges. You took it to mean that all of the charges are old.

Good point that I missed.

Just to clear it up... all of the charges are more than 6 years old.
I got it when I was 17
but I last used it when I was 18

Thanks

[DING]

I found that the statute of limitations for debt collection agencies in West Virginia is 5 years for an "open account" (i.e. credit card).

So collection agencies only have that long to collect on the debt... and then what happens to it?

What if it is resold to another agency... does the 5 year period start over?

Thanks!

[moburkes]

Originally Posted by DING

I found that the statute of limitations for debt collection agencies in West Virginia is 5 years for an "open account" (i.e. credit card).

So collection agencies only have that long to collect on the debt... and then what happens to it?

What if it is resold to another agency... does the 5 year period start over?

Thanks!

No. That would defeat the purpose of a SOL.

[MAYFIELD6]

From what I know, The creditor will still try to collect the debt, or they have sold it to a "bottom feeder agency" ( a collection agency for pennies on the dollar), who will try to collect and they inturn keep the profit.

The original creditor has already written off the debt, hence the "charge-off" on your credit, and taken a tax deduction for the bad debt.

But what ever you do DO NOT agree to / admit the debt or make any payments on the debt, that will start the 5 year SOL all over again. Because it will change the last payment made date, and then you will lose any leverage with the SOL.

Have you purchased a recent credit report lately? Spend the money and get a reliable report from all three agencies. Look at the date account went delinquent, and last payment date. You have to wait seven years from either of those dates ( not sure which, sorry ), then you can dispute them on your report, and have them remove due to the statute of time for credit reporting.

Hope this helps you in any way.

[Zigner]

Credit report copies are free, 1 per year from each agency:

https://www.annualcreditreport.com/cra/index.jsp

[moburkes]

Hmmmmmmmmmm. Now what was incorrect in the above post?
Edit: referring the Mayfield's post.

[debtcollector`]

Originally Posted by DING

I could not make the payments... the card went over the limit... fees racked up and my account was closed and sold to collections. It's now 6 years later and I need to clear up the matter. I got a credit report and there is a collection agency that says I now owe $4500+.

What is the best way to handle this?

Get your checkbook out and pay your bill.

Originally Posted by DING

If I try and settle with the collection agency will they be willing to accept the original card balance, or even less?

You can always negotiate for the best deal.

DC