This Stuff Works

We had run up our five credit cards to the tune of $150,000 and reached the point where even the minimum payments were more than we could afford. I won't get into all the details. We continued to make payments but quickly feel further and further behind with the late fees and over limit fees. The collection calls started to come and they didn't want to hear that we didn't have the money to bring the accounts current. We decided to just stop paying as it wasn't doing us any good on four of the cards. We kept one card current as it only had a $5,000 balance and a $100 payment. But then, that card went from 7% to 30%. We had never been late or over our limit but because of our other cards that gave them the right to stick it to us. So we stopped paying on that one as well after failling to negotiat a better rate. We fully expected to get sued and to have to file for bankruptcy and were making perperations to do so.

BUT, then I discorered a web site that taught the truth about the banks, collection agency, and junk debt buyers. I learned about how they had been lying to us and breaking the law. To make a very long story short, I demanded validation on all of the debt. One card, with a $20,000 balance just disappeared from our credit reports after just one letters. The rest put up a fight. I responded to every letter and call with my demand. I even collecte $1,000 from a CA for breaking the law. Each aco**** went through a string of collection agencies and then junk debt buyers. Only one actually validated but then sold the debt and not the documentation!

So today, we are just about debt free. the status of limitations has run out on all but the $5,000 card and we haven't heard from that one in almost a year. That was the one where the collection effort was the most aggresive. they even paid a local law office to send some letters and to call.

I may be luck that I live in PA. Wage garneshment is not allowed, the SOL is four years, and a signed contract must be produced to win a lawsuit. I knew all of this and let them all know that they were not going to get a default judgement and if they did I would appeal and if I lost the best outcome they could hope for would be a lien on a house that I have no plans of selling.

I spent counless hours reading forums and posts. Not all of the information is correct or useful but a lot of it is. After you read enough, you start to see a common theame. I did buy some books but they were a waste, i had already learned most of what they taught.

I'm not proud of what happened. i'm not gloating. I borrowed a lot of money and wasn't able to pay it back. I would have eventually had anyone been willing to work with me. I used to feel guilt but in lite of this sub-prine mess and how i was treated, I no long do.

The message is that this stuff works. You made some mistakes, maybe had some bad luck, it doesn't matter. The banks and CAs had to right to treat me that way they did. It can be a lot of work but don't give in. That is what they count on. Most judgements are by defualt. I fought binding arbitration more than once and kept my account from going to arbitration. you can too. That another one of their tricks.

The basics are: learn about your state law, its some dry reading but its all on the web, demand full validation, accept nothing less. let them know that you know what your rights are and will show up in court to fight them if it comes to that, create doubt as to the validity of the debt, create doubt as to their ability to collect on a judgement. That sums up my five years in hell and how i clawed my way out.

Never lie, that's fraud. YOu don't have to tell them anything. They will try to get you to admit that its your debt. Create doubt. If you made a card purchase at TJMAX or Marshalls, you have been a victim of identity theft. As luck would have it, someone did steal my identity and opened up an account in my name just a year prior to the start of all of this mess, so there was a frauld alert already on my account.