I need some serious help!!!! Back in 2003, I had financial problems and overextended myself. I owed Bank of America $3800 at the time and could not pay. After many attempts to bleed me dry, they charged it off that same year. I received a recent credit report and Bank of America is saying that I owe them $7900. How could this be? I am in the process of purchasing a house with a bad interest rate but I can re-finance in a year. I had attempted to settle this debt with a Credit Agency last year for $3600 if they would remove the negative marks and show paid in full. On the phone they said they could, but when they sent the offer in writing, they left the removal of negative marks stipulation out. I am currently disputing the amount owed with two Credit Reporting agencies and it is still pending after two weeks. I am at my wit's end. I was thinking of just calling the collections agency who is now the holder, because I told the previous that they were fraudulent, and offer them $2000 for a settled-charge off disposition. Can anyone help me? Is Bank of America able to legally tack on $4000 after they listed the charge off amount at $3800. Thanks. If there are previous links that I should look at, please direct me to them. I could not find anything here or on the net.
It's funny how people never notice the cost of revolving credit until a chargeoff occurs. From the "rule of 72," your interest rate was approximately 24% when it defaulted, and likely the cardholder agreement permitted the same rate to be charged after closing. So, yes.
Notice that if they had obtained a judgement, the judgement would only accumulate interest at a rate set by state law, often around 10% APR. That may explain why OCs or JDBs often only sue as the SOL is approaching, accumulating the maximum interest and fees at the highest rate to maximize their return should they ever be able to collect.
Dire, you are right. I was just taking the fast money for what I wanted when I was young. The whole situation, tho, has taught me to never live off or use credit cards again. I have two credit cards, now, with zero balances that I only have for emergencies, but I also keep emergency money in my savings to not have to use them. Well, I settled the debt for $2500 and will wait 3 years for it to fall off completely. Thanks to the people who have responded and read this thread.
Keep your documentation of your settlement, including copies of their offer, and your payment, since sometimes the unpaid balance of even "settled" debts have a way of coming back for collection years later. If they agreed to settle in full, you want to hold them to it.
Huh. I have to admit that I never thought of that before. Thanks. I did notice that people tended to be sued near the SOL, but I'd always assumed that it was about extending the collection time out as far as possible, not that it was simply about money. Silly me.
Hey, believe me, I understand about sticker shock. Educational, isn't it? I'd been late on my car loan (more than once, and even 30 days more than once) and deferred a couple of payments over the life of the loan. Last payment comes around and it's $2400 higher than normal. Eep. Good that you've got a settlement worked out, but you do definitely want it to say settled in full.
