Interest added to debt?

Permissible interest on a delinquent debt is regulated differently by each state. You need to consult your state civil code on debt collection practices.

Hi koalayummi,

First of all it is important for you to know that no collection agency is allowed to charge more interest than what had been mentioned in the original contract with the creditor (if not the creditor himself had increased the interest rate). So, you need to check with your original contract. In addition to this, you can also do what Lian has advised.

Hope this helps.

contacted AT&T, looks like SOL will be up this month so I'm really hoping I wont have to worry about this anymore... but thanks all for the help!

Hey welcome???hoping that you will be able to get out of this problem soon enough

So glad to hear that the SOL is up this month. This means that the purchaser of this debt cannot pursue you in court. Very good news, considering they paid pennies on the dollar to purchase this debt, and have added hundreds to your original balance. Sounds like it's going to be a happy ending.

Just one question: what state are you in? Your original post said something about a credit card statement from 2009, and I've never heard of the SOL in any state being less than 3 years.

Would anybody else like to comment? I'm curious what state has a SOL of two years. Just researched it, and what I found is exactly the information I previously had. Comments would be appreciated. I could be wrong here, but I want to be sure OP received the proper information from Citibank.

Thanks!

good catch marie as that is a head scratcher as i can't find an SOL less than three years either.if i were the OP as you advised i would look into this further as that doesn't add up.

In most states, the date of SOL commences when a "cause of action" occurs, which is usually the date they can first sue you....i.e, your date of first delinquency after which you did not return the account to paid as agreed status. That is usually the same as your DOFD.
However, as with all SOL statutes, it varies by state. It is usually your DOFD, but that date varies, as do provisions to reset the SOL based on certain actions, such as payments. To be sure, you must read your state civil code for statute of limitations on debt, and not rely on experiences of others from different jurisdictions or different facts.

The last statement they sent out before they sold the debt was Dec 2009... the last payment that was made on this account was July 14th, 2007 meaning the next payment was missed, which was due Aug 4th, 2007.. I'm in CA, it's been over 4 years since the first missed payment, so the SOL is up. :p please let me know if I'm wrong for any reason? lol...

Thanks so much for clarifying this. Strange, that the account continued to cycle, and statements were generated for so long, but your answer does make sense.

Please remember, though, that just because the SOL is expiring doesn't mean that they will discontinue their collection efforts. But, you are at an advantage because of the fact that they will be unable to bring a lawsuit against you for this debt, which means you don't have to worry about answering your door to be served a summons. Huge relief!

Thanks again for clarifying - have a good day!