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rdh2008 · Sep 5, 2008, 05:00 PM

I am being sued by US Bank for 12,826.91 plus costs. They added on $3110.65 from the original balance of 971.26. Is this interest possibly?? I know that I was previously at $6991.82 before all the interest and finance charges.
History: I was a student for 4 years and was having trouble paying the minimum payments. I did call the company to try to set up a payment plan as I had done with other credit cards. I asked to have the finance charges stopped so I might be able to afford the minimum payments. They insisted on a specific amount of $247.00 a month to be automatically taken out of my account. I told them that was too much and they wouldn't go any lower and proceeded to tell me that if I didn't agree that it would be a charge off and that would affect things such as my car insurance, etc. Scared about what would happen I agreed to the automatic payments. I also asked for the agreement in writing or I would not do the automatic payments and also requested the phone # of the person I was dealing with. Needless to say, I never received the agreement in writing and when it came time for the $$ to come out of my account, I didn't have it all. I cancelled the payments with the bank to avoid overdraft charges and tried to call the person I had dealt with. The phone # given to me just rang without an answer every time I called. I, over time, thought that the account had gone to a charge off and that I would be contacted and would be able to come to a settlement. I don't recall ever hearing of a charge off being done and now I just received court papers from a sheriff at my door. I recently finished school and just started a job 2 weeks ago but I don't want my wages to be garnished as my hours are not reliable and I cannot afford to have a lot of $$ taken out of my checks. I have a family that needs to be taken care of and student loan payments that will be starting. I don't want to fall behind on paying all my other bills because they settle on a monthly payment I cannot afford. I need to know what my options are.

JudyKayTee · Sep 5, 2008, 05:10 PM

Originally Posted by rdh2008

I am being sued by US Bank for 12,826.91 plus costs. They added on $3110.65 from the original balance of 971.26. Is this interest possibly??? I know that I was previously at $6991.82 before all the interest and finance charges.
History: I was a student for 4 years and was having trouble paying the minimum payments. I did call the company to try to set up a payment plan as I had done with other credit cards. I asked to have the finance charges stopped so I might be able to afford the minimum payments. They insisted on a specific amount of $247.00 a month to be automatically taken out of my account. I told them that was too much and they wouldn't go any lower and proceeded to tell me that if I didn't agree that it would be a charge off and that would affect things such as my car insurance, etc. Scared about what would happen I agreed to the automatic payments. I also asked for the agreement in writing or I would not do the automatic payments and also requested the phone # of the person I was dealing with. Needless to say, I never received the agreement in writing and when it came time for the $$ to come out of my account, I didn't have it all. I cancelled the payments with the bank to avoid overdraft charges and tried to call the person I had dealt with. The phone # given to me just rang without an answer every time I called. I, over time, thought that the account had gone to a charge off and that I would be contacted and would be able to come to a settlement. I dont recall ever hearing of a charge off being done and now I just received court papers from a sheriff at my door. I recently finished school and just started a job 2 weeks ago but I don't want my wages to be garnished as my hours are not reliable and I cannot afford to have alot of $$ taken out of my checks. I have a family that needs to be taken care of and student loan payments that will be starting. I don't want to fall behind on paying all my other bills because they settle on a monthly payment I cannot afford. I need to know what my options are.

Where to start? None of this is good news, I'm afraid.

They are entitled by the terms of your agreement to collect interest - they do not HAVE to stop interest, waive interest. I'm sure the difference between what you did owe and what you now owe is largely interest - plus, possibly, legal costs.

Their version will be that you agreed to make automatic monthly payments and did not - why should they trust you now/again.

Inability to pay is not a defense. They can obtain a Judgment if they have proof of your debt and they can pursue any legal means at their disposal to get paid. This, of course, includes a wage garnishment.

My question is whether this account is still within the Statute in your State - Statute varies State by State.

Where are you?

ConfusedInAK · Sep 5, 2008, 05:16 PM

I'm assuming if they are suing you then they are licensed to do so in your state...

But you can do the usual and tell them that you want proof of the debt, etc.

I would recommend getting a lawyer to negotiate a lower amount for you IF the statute of limitations has run out in your state...

MANY of these debt collecting companies buy BAD debts that are not good and tack on fees that are unholy!!

Just searching "fight debt collectors" will get you started... there are so many sites out there with info...

BUT DO NOT ACKNOWLEDGE the debt in form of payment or anything else until you find out it is legit!

If you make a payment it starts the limitations from scratch and you have acknowledged the debt...

JudyKayTee · Sep 5, 2008, 05:19 PM

Originally Posted by ConfusedInAK

I'm assuming if they are suing you then they are licensed to do so in your state...

But you can do the usual and tell them that you want proof of the debt, etc.

I would recommend getting a lawyer to negotiate a lower amount for you IF the statute of limitations has run out in your state...

MANY of these debt collecting companies buy BAD debts that are not good and tack on fees that are unholy!!!!!

Just searching "fight debt collectors" will get you started... there are so many sites out there with info.....

If the debt is out of Statute the debtor no longer owes on it, it is beyond the period the creditor can collect, and there is simply no need to negotiate any settlement. This part of your advice is legally incorrect: "I would recommend getting a lawyer to negotiate a lower amount for you IF the statute of limitations has run out in your state..."

The debt is, for all purposes, dead if it's out of Statute.

rdh2008 · Sep 5, 2008, 05:27 PM

Originally Posted by JudyKayTee

Where to start? None of this is good news, I'm afraid.

They are entitled by the terms of your agreement to collect interest - they do not HAVE to stop interest, waive interest. I'm sure the difference between what you did owe and what you now owe is largely interest - plus, possibly, legal costs.

Their version will be that you agreed to make automatic monthly payments and did not - why should they trust you now/again.

Inability to pay is not a defense. They can obtain a Judgment if they have proof of your debt and they can pursue any legal means at their disposal to get paid. This, of course, includes a wage garnishment.

My question is whether this account is still within the Statute in your State - Statute varies State by State.

Where are you?

I am in Illinois

rdh2008 · Sep 5, 2008, 05:31 PM

I am in Illinois. Is there any way to settle this without going to court? OF course the court date is on a day I work.

ConfusedInAK · Sep 5, 2008, 05:32 PM

Thank god I'm not giving "legal advice"...

I meant for them to see a lawyer if the statute of limitations HAD NOT run out...

I think I'll stick to the relationship advice LMAO

I just have/had a company trying to collect on a debt that ran out 3 years ago (it is actually from a CC I had 6 or 7 years ago)... actually I still get daily calls from them...

All I know is that they are NOT licensed in this state, could never prove the debt (because they bought a bad debt) and the statute of limitations ran out years ago for my state...

YET I can not stop that phone from ringing and the have TRIPLED the amount they want me to pay them...

Tyler30 · Sep 5, 2008, 08:28 PM

The best way to handle a credit card company is to try to work out a solution with them , most likely they will not be willing to work with you because they have no incentive to.At this point you tell them they have no collaterl and they can stick it where the sun do't shine.They will take a judgement against you for seven years.If you are ever able to repay them,let them know your willing to pay what you owe if they will agree to remove tis item from your credit report.If they agree,do get ths in writing first,then pay them off.Most credit card lenders are predatory on consumers anyway.Let me know