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Old 07-03-2007, 06:32 PM
 
5,090 posts, read 9,946,141 times
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As far as dealing with collectors, some really good info in this thread . . .

http://www.city-data.com/forum/busin...llections.html

That thread included this link that covers Limitations for Collections Civil Suits in all states on a state-by-state basis . . .

Debt collection statute of limitations listed by state
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Old 07-04-2007, 08:38 AM
 
6,563 posts, read 13,000,583 times
Reputation: 3165
In my experience the WORST Credit Card company to get into trouble with is American Express. These people will NOT leave you alone EVER!!! My wife has an outstanding balance of approximately $170 (no, you didn't misread that) on an account that has had zero activity on it since before I knew her (which would be 1995) and it is STILL on her credit report citing most recent activity in 2001, though they were NEVER spoken to.......

In my experience, my worst was a debt I had from BellSouth for a $75 phone bill. I moved, I intended to pay it, was tight that month and it just kept getting put off and eventually it went away............... I thought................ One day about 6 months later a debt collector called for the $75 and I said I'd go pay BellSouth and intended to, but they called again later that day, and three times the next day and pissed me off to the point where I decided "F*** 'em". Well literally for the next 2 years I'd get calls on it almost every day, sometimes 3 times a day and never answer the phone. Eventually it stopped. Then after a 6 month moratorium I started getting calls on it from a DIFFERENT collection agency in the same fashion....

ALL OVER $75 !!!! I couldn't believe it!!! Was thinking that they probably all told spent 10 times that amount trying to collect it.....

Eventually I paid it in a credit-cleaning effort without ever giving these jerks my money and simply paying BellSouth the way I'd always intended.
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Old 07-04-2007, 04:24 PM
 
4,110 posts, read 10,280,421 times
Reputation: 1914
We have been doing DR for 18 months now and have paid off 2 student loans, one car, an adoption of our child, and all credit cards. We currently only owe on our house and will never buy anything with borrowed money again.

I can't imagine thinking that DR is vague. It seemed perfectly clear to us.

And as far as the quoting the Bible......he is a Christian, he makes no point in hiding that fact.....and the Bible talks about money over 2,000 times and instructs us on how to spend our money. Most Christians don't want to have to face that and ignore that part of the Bible, but it IS there.

Dawn


Quote:
Originally Posted by Hatless Wonder View Post
My sister checked out Dave Ramsey's book, and she didn't like it. It was very vague, it quoted the Bible a lot, and half of the success stories involved people "finding Jesus."
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Old 07-05-2007, 06:29 PM
 
Location: Grafton, Ohio
286 posts, read 1,487,404 times
Reputation: 164
Default Credit reporting

One thing that has not been mentioned is how your information gets reported on the credit report w/ the bureaus since I have not seen anyone else mention.

For the original poster....

The reason why you have not been contacted is because you moved, changed your job, etc, etc. CB's do NOT update their records reguarly. In fact, most are anywhere from 6 mths to 12 mths backlogged, and by the time the collectors get their hands on the information, it may already be outdated or just completely inaccurate altogether.

For those of you that monitor your credit reports.... and those of you that have moved often... ever notice the "current" address is someplace you lived several months or years ago?

The information collectors rely upon comes from other reporting agencies (see Welcome to Accurint to see one of many available tools). They get your most current information by other registrations that you're involved with (including gov't agencies, banks, pizza places, post office, etc); but, if you live below the radar, they won't find much info on you. Again, as others have said... if you don't make much, don't have much, and can't give much... well, they have bigger fish to go after. Especially students getting ready to graduate with degrees; the assumption is they will have an increased income upon employment, and the CC companies will start coming out of the woodwork. It truly isn't worth their time to continually pursue someone they will get nothing out of unless the balance starts getting into the 5-6 digits. Just because they obtain a judgement - if you're outstanding balance warrants it - doesn't mean they will get paid. They then have to go after wages, income tax return, bank account, or whatever they can tack on to.... but, there is also a limitation on garnishments. How much they can take from your money depends on how much you make... and if you don't make enough, well, $5/pp for the next 50 years really is not in their best interest. Might as well take the tax break of an unpaid debt and move on.

Everyone is correct on the last activity date. If you've already decided that you can't pay it back, let it go. It will probably be sold a couple times over to other collection offices, and each time it sells will renew the activity date since the new owner will report it as "their" debt (even though you don't have a written contract with them, only the original creditor). Eventually it will fall off, and judgements fall off in 10 years I believe, along with bankruptcy.

My former occupation was a 3rd party collection agent, I speak mostly from first hand experience.

I personally think CC companies are just as someone else pointed out.... give you something free to get you hooked for life. Just like a drug pusher. They make billions off the average Joe and take advantage of the middle class trying to make ends meet while exploiting America's inability of financial wisedom or responsibility. I remember the week I turned 18 - still in high school, mind you - I had 5 different cc offers come in the mail. Two of those five gave me lines of credit despite the fact I had no real income nor was I even in the real world yet. The goal is to get young people hooked in for the next 30-50 years.
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Old 07-07-2007, 07:53 PM
 
13,138 posts, read 37,039,900 times
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I have a question for you Experts..... what about the monthly late fees (usually at 30 diollars). If you default on your card payments won't they keep racking up monthly late fees for years if you never pay them again or does the law permit them only a few months etc....
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Old 07-07-2007, 08:33 PM
 
Location: Burlington, VT
483 posts, read 1,795,388 times
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And as far as the quoting the Bible......he is a Christian, he makes no point in hiding that fact.....and the Bible talks about money over 2,000 times and instructs us on how to spend our money. Most Christians don't want to have to face that and ignore that part of the Bible, but it IS there.

My sister was looking for a book on money management, not Bible-centered money management or "Christian" money management. She wasn't expecting so much God talk from a money management book, and she felt misled.

If Dave Ramsey does "Christian" money management, he needs to say that from the begining, so people who don't want that can look elsewhere.
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Old 07-08-2007, 09:48 AM
 
Location: Grafton, Ohio
286 posts, read 1,487,404 times
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Default They can and can't

Quote:
Originally Posted by harry o View Post
I have a question for you Experts..... what about the monthly late fees (usually at 30 diollars). If you default on your card payments won't they keep racking up monthly late fees for years if you never pay them again or does the law permit them only a few months etc....
Yes, you would probably see several months of late fees charged to the account. But, I believe there is a 6 mth time period before it goes into charge off mode. At that point, they will not charge any additional late fees. If this were taken before a judge, there are "reasonable" fees defined as permissible. For instance, if someone can't pay because they don't have the income to do so... you know you're not receiving any payments.... why would you continue to add up the charges just making the debt load that much greater? It then would seem irresponsible on the creditor side to continue racking up charges, making liability on both parties greater, then just closing the account altogether.

However, if the card were to get sold to another company... Sometimes the purchaser might tack on a "collection charge" which basically a percentage of the overall bill. I do not know the ins and outs of the legalities of this sort of charge other than your original contract is with the original creditor, and I know I would want to see a signed contract with a secondary company before ever paying such a charge.
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Old 07-08-2007, 01:02 PM
 
2,432 posts, read 6,145,331 times
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All good advice. I would add however if or once you get a judgment against you don't ignore any notice you get to disclose assets. These notices are frequently court enforced and you can get hit with a contempt of court citation if you don't comply. Many people actually end up in jail for ignoring them. Most people get surprised and picked up during a traffic stop.
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Old 07-08-2007, 04:10 PM
 
22 posts, read 74,593 times
Reputation: 16
gnubler,

Obvioulsy, this is a concern you have and you know you haven't done the right thing.

I suggest you start by attempting to make it right.

Call the credit card and see if they still have you as an active customer. You may find your answer and your worries are over knowing IF they wrote if off as bad debt.- Wouldn't you feel better if you knew that?

I would also suggest you check your own credit. You can get a free report online. If you're still hesitant about calling them.

The best thing to do in any situation is face the problem. The sooner would have been better but now, they are not after you so you can still have the ball in your court and ask them how they can help you take care of this. Naturally, 2 years of interest has added up to a huge amount and if you wait on the bank to come after you they will come with the full debt. Now, if you face the problem and explain what happened but you need them to help you they will be more willing to take off some of the interest owed.

This is just my opinion I don't work in a bank or have any financial experience other than my own live.
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Old 07-08-2007, 04:31 PM
 
13,138 posts, read 37,039,900 times
Reputation: 12142
Quote:
Originally Posted by bubbagirl View Post
Yes, you would probably see several months of late fees charged to the account. But, I believe there is a 6 mth time period before it goes into charge off mode. At that point, they will not charge any additional late fees. If this were taken before a judge, there are "reasonable" fees defined as permissible. For instance, if someone can't pay because they don't have the income to do so... you know you're not receiving any payments.... why would you continue to add up the charges just making the debt load that much greater? It then would seem irresponsible on the creditor side to continue racking up charges, making liability on both parties greater, then just closing the account altogether.

However, if the card were to get sold to another company... Sometimes the purchaser might tack on a "collection charge" which basically a percentage of the overall bill. I do not know the ins and outs of the legalities of this sort of charge other than your original contract is with the original creditor, and I know I would want to see a signed contract with a secondary company before ever paying such a charge.
Thanks bubbagirl for answering my question directly.....

harry!
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