And Old Debt has come back to haunt me. What should I do?
Date: Tue, 04/03/2007 - 19:57
More than 7 years ago I took out a loan for $5000.00. Unfortunately I was young and dumb and did not read the fine print. They were charging me 30% interest. I paid $200 a month for over a year but the loan only grew larger. I became frustrated and decided to stop paying it. I became delinquint in 1998. It popped up on my credit report about 4 years ago and I contacted the collection agency and tried to settle the debt. I offered to pay $3700 but they declined, yet they insisted I make a payment. I didn't. Just recently I got a notice that it was sold to another agency and has grown to almost $10,000. I am so confused. What do I do? Do I have to pay it? And how long will this remain on my credit? I had perfect credit before this problem.
You will need to send the new CA a debt validation letter. This
You will need to send the new CA a debt validation letter. This would be your first step. You can find a sample letter in the Do it yourself section of the forum. Look under our services at the right. Please send it certified mail with return receipt requested. This way you will have proof they received the letter. You may also want to check the SOL in your state. The amount has grown over time probably because of interest and late fees tacked on.
