I need help, I received a letter today from a collection agency stating that I owe $1800.00 and they are willing to settle for $1100. Here are my problems first of all I am unsure who the money is going to, and secondly if it is to the place I am thinking of which is Capital One. I had received a maximum limit from them of $300 which of course I fell behind on my payments and now they say I owe $1800 can they really charge that much extra in fees?

Veryconfused

Fr_Chuck

Yes interst fees go up to a ungodly amount and they add a late fee of 30 to 50 dollars a month plus a over the limit fee of 30 to 50, so they can add up fees of 100 a month on top of the interest

But if you don't even know what the debt is, you merely write them and tell them they have to show proof of the debt.

mr.yet

FR Chuch is correct, if you are not sure about the debt, request verification of the debt in writing within 30 days of their notice.

posheak

Contact the Better Business Bureau or, better yet, your state's Commerce Dept. Of course, one big factor is just how long you've owed this money - interest rates are charged every month so if your rates are 19% or more a month, it wouldn't take long to build up to $1800 because each month the interest rates are added to what you owe so each month the amount of interest goes up too. Hope this helps Godbless

ScottGem

The BBB will do NOTHING in this instance. Contacting them is a waste of time.
The state Commerce or consumer affairs agencies will also do nothing at this point.

The simple matter is this agency was either hired by the creditor or purchased the debt from them. So you have a right to get the exact details of the debt before you decide what to do. So what Chuck and Yet told you is the correct thing to do. Once you get an accounting of what the debt is, you can then decide how to deal with it.

If they won't provide you with that info, then call their bluff and tell them to sue you.

veryconfused2003

Thank you everone who has answered it answered my question and I am disappointed for myself it does not look good but I am going to right the company and get a copy.

Thank you,
VeryConfused