I sent a validation letter to a CA who called me in Jan asking for 1450$ for some student card. Since the call was their first communication with me, I send them a validation letter the next day(making it with in 30 days of first communication) asking for proof with CMRRR. They got my letter on Jan 10th and today I get a CMRRR letter back from them.This is what the letter contained : Copy of my last statement for the CC.This is from Jan 20 2005 and says that my interest rate is now 29% as I missed my dec 2004 payment. Also the card has a CL of 500$ and with interest and fees, as of Jan 20 2005 the final balance shows 520$. A letter(unsigned) stating that they have attached a copy of my last statement for the card in question and that they have been informed by the bank that they will get an affidavit stating that I owe the balance in question and also my original application. They say that once they receive this, they'll have the necessary proof here in Colorado to take me to court. It also says, review this info and if I do not respond in a timely manner they will proceed with the next steps in their legal process. That's all. I asked them for proof of the 1450$ they said I owed and they just send a copy of my last statement. Also since I defaulted in dec 2004 and never made a payment as per my so called last statement, wouldn't my SOL just run out? ( Colorado sol is 3 years as far as I know. Is it right?) How should I respond to this and how long do I legally have to review the info and respond ? PS : the CA is not reporting a TL to any of the 3 CRAs. Please give me some suggestions.
I would wait for the pros to arrive here as I am not a pro by any means. However, I do beleive that the said acct may be out of sol if the info you provided is correct. I do beleive Colarado is 3 years from date of first delinquincy. When in Dec 2004 did you make a last payment? SOL starts at the date of first delinquency (when the acct became 30 days late & no further payment was made) as far as I know, so if last payment was in Dec 2004 then I beleive you would have defaulted in Jan 2005. So if your acct is not out of sol already it should be very soon. Sounds like they are attempting to scare you into making arrangments with them so they can reage the debt. You can call the original creditor and ask when did the acct go delinquent per thier records, I had to do that on a old debt my mom got served for, to clarify the date of delinquincy, turns out it was out of sol so we filed an answer & they dropped it. Good luck & hopefully one of the pros will stop by soon. Like I said I am not one. Good thing they aren't on your reports but even so be wary of them popping up. Kudos though to you, you obviously have been researching and getting informed. Stick around, there is lots to learn! Tegleg
Aside from the SOL issue, they sent you a statement, their "proof" says $520, yet they dunned you for $1,450? Was there any explanation/calculations/reconciliations of the difference in amounts?
I beleive the OP said that the CA was obtaining an affadivit from the bank affirming the balance due. It sounds like they're saying the interest was still accrued on the account. It sounds like the CA is doing everything in accordance with legal requirements, at this moment. Right now, you need to wait for the further evidence to be provided. Also, what state is this CA in? What state is the "bank" or account holder in. Though you may be possibly past SOL for Colorado, they may try to claim SOL for the state of business for the CA and/or bank. You need to do a bit more homework here.
Let me try to answer a few of the questions to make matters more clear : 1) They say in their letter that - "attached is a copy of your last statement for the Visa account in question as response to your letter." . It goes on about them getting affidavits from the bank along with my application. They say that - " these documents will provide us with necessary proof to enter into a lawsuit against you for the entire balance along with appropriate fees.". It also says - "We expect the balance to be paid in full and will not settle for an amount less than what is justly owed to the Visa card in question. Our office will allow you to review this letter to decide your next course of action.". The parts in double quotes are verbatim from the letter I received. And they attached a CC statement ending Jan 20 2005 which charges a late fee because I missed the december 2004 payment.. I know for sure that I have never paid since. 2) I live in : Colorado ( always lived in colorado) 3) CA is in : Colorado 4) OC is Citi cards - NV. 5) They talk about what is justly owed but I never received a written thing that says what is it that I justly owe... Is it the 520$ that the report says or the 1450$ they asked me over the phone( pre creditnet days). They do not mention any amount in the new letter(their only written correspondence). They say that - " if we do not hear from me in a timely manner, we will proceed with the next steps in our legal process. The letter is dated Jan 31 2008. So how should I reply to this letter and what is timely here ?
First, cover yorself by writing a letter acknowledging receipt of their first validation request respsonse. State you await the arrival of the additional supporting information. Then wait for the promised documentation. Review carefully everything sent. In the meantime, verify the CO SOL times. It looks like you're covered for CO SOL periods w/the CA being from CO also. Once all documentation is received (and you've taken some "time off the clock), you may wish to respond with the affirmative defense that the debt is past SOL for legal collection, and that you will raise this defense if legal action is brought against you. Good Luck...
