[CCStudent]

I had a CC Debt of ~$2200 2.5 years ago. With a bunch of things that went on I ended up procrastinating and frogetting about it. When called by this collection agency in January I put them off and haven't talked to them.

Today they called and told me to take care of it today but did not threaten anything. I told them there was no way to take care of or pay anything today and they hung up on me.

On the phone they threw around numbers of $3200 then $3700 and said they had put this on my Credit Report in January. What are the chances they'll instigate legal action for this sum? What should I do from here?

[Sentra]

Ick, I HATE, DETEST those phone calls. They try to pull out the scare tactics: This will be on your credit report for the next 7 years!! Muahahaha! Puh-leez.

If the price of the owed amount is higher, that's the collection agency incurring their own fees. Read these:

http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm

http://www.emaxhealth.com/49/5857.html

http://www.ftc.gov/bcp/conline/pubs/credit/repair.htm

http://www.bills.com/creditcarddebtconsolidation/

http://www.faqfarm.com/Q/Can_you_be_...edit_card_debt

And remember, any amount of payment you send them HAS to be accepted by them. Hope these help and good luck to you.

[DrJ]

CCStudent,

What state do you live in? Are you employed? Self-employed? Are you a home-owner?

[CCStudent]

I rent an ampartment and do not own a home. The only property I have is my car which is worth less than $5000 and am sure is not a seizable asset. I am not self employed. I'm in Texas so the statue of limitations is four years I believe.

Today I first have a woman on the phone then she puts on her manager and after I say I can't do anything today he starts with some misused legal jargon to summarize about my last payment and that I was not going to pay today. I asked him why he was doing that and then he starts going on and on about me borrowing money from a family or friend today. Then he says he'll give me an hour to come up with something and when I said I couldn't do anything today he hangs up. I don't want to skip out on the debt but I can't negotiate and commit to something right now nor do I want to lose any rights. My main fear is that this gets sold to a Collection Attorney and find myself having to cough up a big sum at once.

[DrJ]

Well, the good news is that you live in Texas... gret debtor protection laws there. You pretty much have all the leverage. Also, its "unsecured" debt so they can never actually "seize" your property. All they can do is file for a judgment. If they get the judgment (which they likely will), they can garnish your wages, put a lien on your property, or levy a bank account. HOWEVER, since you live in Texas... they can't do ANYTHING with that judgment. They can get it still, and it will go on your credit report, but that's it.

You pretty much have all the leverage.

If I were you, I would let them know that I know this. Tell them that I am willing to work something out with them but it will have to be at a later date. And tell them that if they do not like that idea then good luck ever getting their money.

[CCStudent]

Let me see what happens over the next few days. I think the best bet is to send a letter saying that and asking them to only contact me in writing.

However, I think the reason why they contacted me was because they have been monitoring my credit report. On 10/11 the day an agency sent out a verification letter (I didn't get the letter until 10/16 after having paid on 10/13) for a three year old bill from an old residence they contacted my mother at my parents house (where I had lived many years before.)

After a brief confusion of Jr. (me) and (Sr.) her husband (she indicated she was the wife of the name they were contacting) they got off the phone
Having told her I had till noon the next day to take care of this because of pending legal action and knowing she was my mother.

Then they left a message at noon the next day at my parents and then talked to her telling her I had not called them at 3PM that same day. I called them back and told them that was my mother and not to call her to two different people one of which said she would call as many times as she liked.

I negotiated a settlement at that time even though they were breaking the law (because the debt was so small, they said there was no way for them to send me any verification because they had sent letters and this was third stage collection saying all they could give me was a settlement letter. Also my mother was calling me feeling over and over feeling incredibly anxious and upset.) The agency then called her the next night discussing things and telling her there where stipulations etc. on the deal they had faxed to me.

Should I file a complaint? Will they erase the tapes where I described all of this and the person apologized saying it should not have happened?

I learned my lesson long ago and now I need to take care of these things.

[DrJ]

What tapes? The collection agencies? I wouldn't count on anything from them to be used as evidence against them.

You could file a complaint with the FTC but you'd have to sue them to get any $$ to cancel out the debt, which would likely cost more than its worth.

Now, if YOU recorded the call, that would be great. One thing Ive told a lot of clients is that when they call, tell them that you know they are probably recording the call so you are going to record the call, too. Put the phone down and go grab something that will go click. Come back and 1) see if they are even on the phone still and 20 making the clicking noise and say "okay... go ahead." lol

[ScottGem]

One thing that bugs me through this thread is that you never deny you own this money. In fact, in the OP you admit you just forgot about the debt.

So what does that make you? It makes you a deadbeat. The honest thing to do is to negotiate a reasonable settlement that you can both live with.

Forget that they may have used questionable tactics in trying to collect this debt. Remember you ran out on the debt. As far as they know you are a deadbeat.

[LSS60]

What happens with a situation like this in South Carolina... anyone know?

[ScottGem]

What happens with a situation like this in South Carolina...anyone know?

What should be different? You owe the money, you make an effort to repay it.

[DrJ]

In SC, the statute of limitations is 3 years so if 3 years has passed from the date of last activity (the date of the last charge to the account or the date of the last payment... whichever was later), then they lose the right to sue for the debt.

[LSS60]

What should be different? You owe the money, you make an effort to repay it.

I totally agree with that but what happens if you have truly tried and other reasons have come up that you can't! I did not ask for the answer you gave-that much we do know... just want to know what happens in SC.

[LSS60]

In SC, the statute of limitations is 3 years so if 3 years has passed from the date of last activity (the date of the last charge to the account or the date of the last payment... whichever was later), then they lose the right to sue for the debt.

Thanks so much for your answer-has not been 3 years yet and really just curious what they can do before those 3 yrs are up. I have tried and want to still pay these off but some things concerning my child and the divorce I have recently gone through, it makes this very difficult. I know how important good credit is but I had much rather be able to have a home for me and my child. Hope that makes some sense.

[ScottGem]

LS, the reason for the response I gave, is the advice previously given is not going to change much from state to state.