Hi everyone. I have a situation that I was hoping for some advice on.

Back in 1997 I opened a credit card and stopped using it in 2000 with a zero balance. To my recollection, I did not close that account. I moved several times afterwards.

In 2002, I received a letter from a collection agency for a "settlement offer" stating that I owed the credit card company $350. I wrote a letter to both the CC company and the collection agency requesting more information on the alleged debt. I received no response from either.

I thought the matter was closed, but two days ago, I received a phone call from yet a different collection agency stating that I now have a balance of nearly $3000. They offered to make a settlement for $650. I refused and the agent threatened me that I'll be hearing from a sherrif's department summoning me to court. I repeatedly asked why and how I owe anybody this amount.

I've contacted the CC company, who simply don't care anymore since they've sold the debt. It appears that my "debt" have been sold to several collection agencies throughout the years. Yet, the letter I received in 2002 was the first and only time I've been contacted about this until now. More interestingly, the current collection agency bought my debt for $600.

I've requested through e-mail that they validate the alleged debt by providing the original contract (thanks in part due to advise from previous threads on this forum).

My apologizes for making this so ridicuously so long. I am incredibly confused and frustrated abou this situation.

I would greatly appreciate ANY advice or comments.

Thank you.

Do not agree to make any settlement, not even a dime. If you pay or offer to pay you will reopen the statute of limitations. If you did not close the CC account there could be service fees building over the years but too much time has gone by. Anyone el;es callsend them a form letter telling them not to call, everything must be in writing.

Some cards have a very high yearly fee, check your credit card contract, if there was a yearly 75-100$ fee then that fee plus interest could be where the original 350 came from. If it's been 7 years they can no longer take you to court but can damage your credit. If your card did not have a yearly fee when you stopped using it and you want this off your credit, get a lawyer, someone may have used your card illegally.

Thanks for your comments. I'm confused about the time-line. I received the first letter from a collection agency in 10/2002, but I found out today when I contacted Citibank that they "sold" my debt in 2003?? Either way, seven years would make it 2009 vs 2010, right?

Gee.. what a headache!

The weird thing is that the agent that I spoke to on the phone wouldn't give me any details about the original contract or how the amount was calculated. He kept pushing to make a settlement. I refused stating that I needed to know why and what it is that I'm paying. He got very upset and told me that I will be summoned to court.

I will write them a formal letter tomorrow requesting the original contract.

Another question. Does the interest on the debt continue throughout this whole time? I guess so.

Thanks again.

The statute of limitations begins to run when you last acknowledged the debt with a payment or promise of payment. The statute is not affected by the date the CC sold your debt. That guy keeps pushing for a settlement because if you agree to pay anything it restarts the statute. If you really want to play his game tell him you are going to record the conversation. Keep refusing to settle and send your letter.

I just got an e-mail response from them. Here it is:

Chaudry v. Gallerizzo, United States Court of Appeals for the FourthCircuit, 174 F.3rd394, 406 provides that: “…verification of a debt involves nothing more than a debt collector confirming in writing that the amount being demanded is what the creditor is claiming owed; the debt collector is not required to keep detailed files of the alleged debt. Consistent with the legislative history, verification is only intended to eliminate the…problem of debt collectors dunning the wrong person or attempting to collect debts which the consumer has already paid…There is no concomitant obligation to forward copies of bills or other detailed evidence of debt.”

Also:

Balance: $2,795.68

______ has contacted you regarding a settlement for the above mentioned account. Your payment is due as follows: Amount due Date due$ 1,379.50 03/30/2007

Upon successful completion of your final payment, the above account will be considered settled in full and will be reported to the major credit reporting agencies if applicable.

If you have any questions relative to the above referenced account, please do not hesitate to call our office at 1-866-236-4190 ext.100.

Federal law requires we notify you this is an attempt to collect a debt and any information obtained will be used for that purpose.

So what should I do now?

Am I really not entitled to know how my debt came about. They're basically asking me to pay a certain amount, in this case $1379.50 without telling me how they came up with that number.

Help!

I am not an attorney but the fact that they can quote an appeals case doesn't mean it is the only similar case. Do not offer to pay. You might be at that magic point of needing to hire a good attorney.

This is becoming crazy.

Should I just settle and pay their $650 demand and just be done with it once and for all?

Is it really worth it to pay all the attorney fees and the headache of going to court?

This sucks.

The worst part of it is that I still don't know the details of how I owed Citibank in the first place AND that I was not contacted for years..

I am confused where did the $650 come from? Not in your previous post or their letter. Sure you can pay them, by the way you owe me $1400 but I don't have any paper to prove it. Can you send me the money right away. Now I sound nuts too. I would not pay them but you decide the bottom line, we are just advising.

Quote:

---

Originally Posted by lsc678

Hi everyone. I have a situation that I was hoping for some advice on.

Back in 1997 I opened a credit card and stopped using it in 2000 with a zero balance. To my recollection, I did not close that account. I moved several times afterwards.

In 2002, I received a letter from a collection agency for a "settlement offer" stating that I owed the credit card company $350. I wrote a letter to both the CC company and the collection agency requesting more information on the alleged debt. I received no response from either.

I thought the matter was closed, but two days ago, I received a phone call from yet a different collection agency stating that I now have a balance of nearly $3000. They offered to make a settlement for $650. I refused and the agent threatened me that I'll be hearing from a sherrif's department summoning me to court. I repeatedly asked why and how I owe anybody this amount.

I've contacted the CC company, who simply don't care anymore since they've sold the debt. It appears that my "debt" have been sold to several collection agencies throughout the years. Yet, the letter I received in 2002 was the first and only time I've been contacted about this until now. More interestingly, the current collection agency bought my debt for $600.

I've requested through e-mail that they validate the alleged debt by providing the original contract (thanks in part due to advise from previous threads on this forum).

My apologizes for making this so ridicuously so long. I am incredibly confused and frustrated abou this situation.

I would greatly appreciate ANY advice or comments.

Thank you.

---

Should I just wait and see what happens. They refuse to provide the original contract or ANY information other than that I owe them money.

Thanks again for your help. It is much appreciated.

Sorry I missed that point but it appears that was averbal offer. Their written response now demands $1379.50 so that's what they want now. Hey speaking of money did you send me any yet? Just kidding.

10 years.illinois credit card sol is 10 years,not 5 years.it is a written contract.if you go to court the plaintiff's atty.and the judge will tell you it's a written contract and 10 years.if you win on 5... it's luck.
My court date was march,2007 and I won on a technicality only after the judge and attorney said not to bother,it's 10 years.the laws are written and overturned in appeals courts but still read as the old laws.this is the case that sets precedence:
Harris trust and savings bank v loncie d.mccray
July 24,1974.
This case redefines written cantracts in relation to credit cards in Illinois.
Good luck,
steve55

Quote:

---

Originally Posted by lsc678

This is becoming crazy.
Should I just settle and pay their $650 demand and just be done with it once and for all?
Is it really worth it to pay all the attorney fees and the headache of going to court?
This sucks.
The worst part of it is that I still don't know the details of how I owed Citibank in the first place AND that I was not contacted for years..

---

Do not offer to settle. Do not pay anything. The case they cited refers to dunning NOT suing. They do not have to validate the date to ask you to pay it, but they DO have to validate in order to obtain a judgement against you.

I would respond to the creditor (by mail) telling them, as far as you are concerned or aware, you paid off any outstanding balance in 2000. You have not used the account at all since that time. Therefore you have no knowledge or understanding of how there can be a balance on this account. Unless they can show you that you used the card after that time you consider that this is a mistake and you have no debt to pay.

I think you can handle this without an attorney. Just stick to your guns.