When I was in college, I got an MBNA card with a $700 limit. After not being able to pay them for three months in a row (I was completely clueless about credit), the card was charged off sometime in late 2000 with a debt total of about $900 (with all the fees MBNA added on). Soon after, the debt was sold to Portfolio Recovery Services, who began contacting me about the debt about a year after it was charged off. At first I ignored the letters (still oblivious to credit at this point) but about 6 months ago, I sent them a validation letter for the debt. They sent me back a copy of the credit card application I originally sent in to MBNA - nothing else. After that, I sent them a second validation letter, but heard nothing back from them. Then, two months ago, I recieved a letter from an attorney's office who claimed they were now handling this debt for PRA and asked that I send them the money for the debt (at this point, they claim I owe around $2500). I sent them a validation letter, and heard nothing in return. Just as I was about to send a 2nd validation letter, I recieved from the attorney's office in the mail a "warrent of debt" and a date to appear in the general district court in my city in December. The warrent claims I owe PRA the $2500 plus 8% interest since October 2001 in addition to court and attorneys fees. I know that this debt is mine, and I know that I should pay it - however, I refuse to pay the amount they are claiming I owe, and this was the reason I sent the letters to validate the debt. What are my options? Any advice would be greatly appreciated. Thanks.
You sent in a validation request on a debt within SOL, you left them no option other than to sue you. You can file an answer and notice of appearance disputing the additional fees, interest and charges. You can look up the usury laws of whatever State you are in to see if they exceeded them. Other then that, you will have to negotiate at a mediation hearing for a payment plan.
There will be no mediation hearing as far as I know - it's just pretty much show up in court and the judge rules for you to pay it. I'd like to try and talk to the attorney's office ASAP and try to settle this debt for a fair amount - then arrange a payment plan. I know I need to repay what I owe, but I refuse to pay these ridiculous fees that amount to over $1500. I am going to look up the laws for my state (VA) to see what they can legally collect, but in the meantime, has anyone had any luck negotiating a settlement such as this? Any help would be appreciated. Thanks
