Help please?

[lrm216]

What is the name of your state? GA

Account is charged off (Cross Country Bank) for almost 4 years. Dola on equifax is 9/2002. For the first 2 1/2 years I was harrassed by 3 different collection agencies - none of which ever validated this account. In desperation, and before I found these boards, I went with the now defunct Ameridebt (I know, I know, no verbal assaults please, I was naive and very stupid). I paid for about 5 months and then stopped and never paid another cent on that account. THe total amassed at $3,009 and even with the 5 payments made thru Ameridebt the amount never changed from that figure. Haven't heard anything else in all this time. All of a sudden I get a letter from Applied Card Bank addressed to my estate and asking my next of kin to please supply the name of the executor of my will so that they can collect on this debt. I figure they are just fishing since they probably have seen recent activity on my credit reports, but not quite sure what to do next. I figured I'd just wait it out and see what they do next. What I am curious about is how and why did they get the acount back after all the collection agencies had no luck with me. Also, do those 5 payments made thru Ameridebt restart my sol. Equifax has dola as 9/02, Experian has 1/03 and Trans Union has 12/03!!! Any advice will be most appreciated.

 

[Debt Guy]

Q. Account is charged off (Cross Country Bank) for almost 4 years. Dola on equifax is 9/2002. For the first 2 1/2 years I was harrassed by 3 different collection agencies - none of which ever validated this account.

A. Most likely, no validation was required unless you made the request within 30 days of the initial notice -- in which case they are only required to validate if they wish to continue collection activity. In such situation, it is common to pass the debt to a different collection agency.

Q. In desperation, and before I found these boards, I went with the now defunct Ameridebt (I know, I know, no verbal assaults please, I was naive and very stupid). I paid for about 5 months and then stopped and never paid another cent on that account. THe total amassed at $3,009 and even with the 5 payments made thru Ameridebt the amount never changed from that figure.

A. Not only a waste of money, but those payments almost surely (99% probable) restarted the state statute of limitations.

Q. Haven't heard anything else in all this time. All of a sudden I get a letter from Applied Card Bank addressed to my estate and asking my next of kin to please supply the name of the executor of my will so that they can collect on this debt. I figure they are just fishing since they probably have seen recent activity on my credit reports, but not quite sure what to do next. I figured I'd just wait it out and see what they do next.

A. Don't know why they think you are dead. Clearly they have not forgotten that money is owed.

Q. What I am curious about is how and why did they get the acount back after all the collection agencies had no luck with me.

A. Because you still owe the money. Until you pay, there is going to be someone on your neck being a pest.

Q. Also, do those 5 payments made thru Ameridebt restart my sol.

A. In my opinion, yep.

Q. Equifax has dola as 9/02, Experian has 1/03 and Trans Union has 12/03!!!

A. No man knows the ways of the CRAs. They only repeat that they are told by the creditor. Clearly, at least one of the reports is wrong.

Is there a reason you have not just paid this?

PS -- the SOL for Georgia for a written agreement is 6 years. In my opinion, and that of most judges, a credit card is a written agreement regardless that thousands of gurus on the internet say differently.

 

[lrm216]

Had 2 accounts in good standing with CCBank. This particular account had balance of $175 which I paid and asked them to close.

Approx. one year later, received harrasing calls from first collection agency and was shocked to find that someone reopened this account with CCBank and they sent new cards. The someone turned out to be my alcoholic daughter -to the tune of $1,950. I work everyday, she would get the mail and rip up whatever statement came monthly.

After first collection agency, I contacted CC Bank furious that they would reopen a closed paid account without calling me at my business number which they had. They refused to acknowledge any responsibility. I asked them to remove all the lates and over limit charges and I would pay the amount charged - monthly until it was paid in full. They refused!

Could not claim fraud unless I wanted to prosecute my daughter. It was then I put it with Ameridebt hoping they would have pull with getting the 29.99% interest lowered and the lates deleted. They assured me they could. After 3 months, got a letter from CC Bank telling me they would no longer honor the deal with Ameridebt as I missed 2 payments. Ameridebt never sent the last two payments!!

I paid two more payments but could not pay as much as what was accruing in late fees and over limit fees each month. Chasing my own tail, I stopped paying. Amount has been $3,009 dollars for last two years. Collection agencies have come and gone. Asked for validation WITHIN the 30 days on each, never received anything. Heard nothing for the last yearand a half until the "estate condolence" letter. I think they are fishing for info on me which is really stupid as I still have the other account with them and pay every month!!

Do not want to waken the sleeping giant since they were never cooperative with me, but I do not want to be sued either. All my accounts, mortgage, utilities, car payment, etc are paid on time with NEVER any lates. I am not a deadbeat and never have been.

If those 5 payments in 2003 did reset the sol, I certainly don't want to be sued. Any suggestions as to what I might do now???? Wait them out or call them and try to settle yet one more time?

 

[Debt Guy]

It is too late in the day for me to try to read what you wrote.

Please retype it and use some paragraphs and punctuation to break up ideas and concepts.

One big ole block of type is really hard to read.

 

[lrm216]

Bump, please

 

[Debt Guy]

Yes, those payments almost surely restarted the SOL.

Personally, I do not think this is the fault of the original creditor. The fault lies in your daughter and your refusal to file a police report for identity theft. That is your decision to make but certain liabilities come with that decision.

Clearly Ameridebt was a bad decision. This is about the thousandth time I have heard the same story about them.

Water under the bridge.

What to do now?

The debt has probably been sold to some third party. They will not want to hear about your beef with Cross Country. My guess is that eventually someone will decide to file a lawsuit against you.

Personally, it will never be cheaper to fix than now. Once a lawsuit has been filed, you will have legal fees, court costs, etc. to drive up the costs.

My advice is this: (1) sit down with your budget and think about two scenarios -- if you could make a deal to settle the debt for less than the full amount, how much could you pay in cash in a lump sum to make it all go away right now -- if you cannot do a settlement, how much could you pay monthly and be able to keep that monthly promise until the debt is paid.

Call the collection agency. Talk calmly but directly. Tell them you would like to take care of this and can afford to do "X" -- make "X" about 2/3rd of what you can really do so you have some negotiating room.

Don't let the collection agency pressure you into something that you can't do. It will only be a disaster in the end.

If you agree to a deal, insist that they put the agreement in writing before you give them any money.

If you cannot make a deal with the collection agency that you can live with, then you did the best you could and whatever happens will happen and there is nothing you can do and worry is a wasted emotion.

There are some other alternatives:

Some people will tell you to just hunker down and pretent you don't exist. That strategy is betting that they will never get around to filing a lawsuit. Sometimes it works. Most often, it does not.

Some will tell you to just go silent, wait until they sue and then file a response denying the debt. You hope they will not be able to prove to the court that you owe the debt. That approach will require that you spend the time to learn how to file responses in the proper form and will require you to reseach GA law to defend yourself. Sometimes it works. If the creditor can prove you made those earlier payments, then you will have a tough time convincing the judge that you were being truthful.

Others will tell you to become proactive and set a trap for the collection agency so that you can sue them for violations and thus create leverage for yourself. That approach requires a lot of work and study to learn about the law and what the CA can and cannot do and how to use it to your advantage. Ultimately, you will need to file a lawsuit against the CA in order to gain the advantage. All of that requires a lot of work and preparation -- no one is going to do it for you. Personally, I think this strategy sounds good but does not work all that well because 99% of the time you will be too lazy to do the work and study or you will just screw it up because you've been advice from nutcases. If this is something that interests you, go to www.debtorboards.com and read for the next six months.

 

[lrm216]

Thank you so much for your kind advice. I truly appreciate it. I am certainly not looking to play games with anyone and an attorney I am not. So, to assume that I could out manuever them legally would be a stupid move on my part. I don't want to throw more mud in muddy waters.

I think my best bet would be to just bite the bullet on this one and attempt to contact Cross Country Bank once again, and pray I get some one cooperative and willing to even discuss this matter. The letter I referenced was from the OC and not a CA. It would be a hardship for me to come up with a lump sum; however, I could definitely pay them a monthly sum - if they would be willing. The "IF" is the big question. In the past they were absolutely horrible to deal with - I really can't expect them to be any different now. But I will give it a try.

Again, much thanks.