Charge off amount
Date: Tue, 04/28/2009 - 14:44
I am sure the amount the CA is claiming includes collection fees
I am sure the amount the CA is claiming includes collection fees and interest. I would call the OC to verify if the account was sold to a CA or is the CA just collecting for the OC. This will clarify the additional charges the CA is claiming.
Once you get the charge off amount verified from the OC. I would then send a debt validation request letter to the CA to clarify the $867 balance.
Interest at 30% APR runs to about $145 a year (on the $488 balan
Interest at 30% APR runs to about $145 a year (on the $488 balance), and that's basic interest, not compounded like a credit card normally is! So your interest will add on to the debt very fast, and the larger the amount, the higher your total due will be, especially with late fees.
You may send them a Debt Validation letter if you like, though. According to Section 808 [15 USC 1692f(1)] they cannot attempt collection of any amount (including any interest, fee, charge, or expense added to the principal debt) unless such amount is expressly authorized by the original agreement creating the debt or permitted by law. How old is this debt? (When did it default and when did it charge off?)
But certainly, offer them a settlement. Here is info on how to settle your debt and get on with your life.
Oh, and *make sure* you get any settlement offers that you like in writing before you pay a dime!
