Hi C'Net'ers! I haven't been around since before the holidays...got busy with other stuff in my life. But now I have a question regarding a collection account that is over 5 years old. I requested validation on a collection account back in October and recieved copies of application and agreement to pay a certain $ amount with fixed payments for 24 months. I never paid. The CA provided no other statement. The amount that the CA is reporting on my TLs is $1,000 over the amount listed on the agreement, which includes a fixed finance charge amount for that original 24 months(at 19%). This is an out of state collection agency but I am pretty sure California law says that a CA can charge 10% interest if it is included in your original contract? But the original contract says they can collect a late payment charge of 5%. The CA won't respond to my letters asking for a statement of charges to account for the additional $1,000 they are reporting. Impatient me called them today just to see what they would say. I was told they 1) Dont have an accounting department and won't send a statement. 2) When turned over to them in 2002 they say the amount was $600 higher than original agreement and since 2002 the CA has added at 10% almost $400 more of interest. The lady was unwilling to even listen to me and just kept asking when I would send payment. We want to buy a house this year and are told that if it isn't deleted we are going to end up having to pay it. It has 2 years till it drops off still and I dont want to rent for another 2 years just to get out of a couple thousand. BUT, I only want to pay what I am legally obligated to... not just because they are reporting it because I know this CA is probably shady. Thanks!
