$4000 in interest in 9 months, is that legal?

If interest rate around 30% you looking at $300 per month, which is compounded. Yup....probably right

Sorry, I don't really understand it. But, before there was another CA that had my account, and I only accrued, maybe 1000 on interest in two years.

What about the Usury Penalty thingy? Sorry I don't really understand that. For my state it's suppose to be 9%. I live in Oregon.

I had this debt for 5 years now I think.

Hardly usuary.....9% is probably the state interest of jugdements. Credit cards, particularly late or defaulted ones are usually around 30%

Thank you for your help. I see. Time to go file bankruptcy then. 4000k a year on interest is too much.

Hi Torri,

Hi don't think bankruptcy is a good idea. Chapter 13 Bankruptcy, which has a repayment plan remains on your credit report for 7 years destroying your credit score by at least 200 points.

You should try to do a settlement agreement with the CA instead. it can reduce your debt up to almost 60%. Do all the correspondences through certified mail and keep a receipt of everything.

Hope these information will help you.

assett acceptance?i'm immediately suspicous.can you answer me this.since you said it was with another place before.

1)what was the date of first delinquency
2)what state are you in
3)what does your credit report say on this debt

sorry but i don't trust asshat acceptance as most if not all debt is either past SOL,or paid,or part of a BK petition.never saw anything were a debt they collected on was legitimately owed.

It's within the SOL. And I live in Oregon. The charge off was from Providian. However, when I called, they said it was from Washington Mutual.

I'm gonna DV them, but I have some questions. Can I request other than validation of the debt, how they go about charging that much interest. I have records of all my bills I think, for the last 10 years stored in a box.

Also this is past the 30 day DV limit. If they don't reply with a DV I heard they can wait as long as they want right? So is there a point for a DV still?

Also the original debt was 11,000. Credit report says 12698. When I called them they also said, 11,000. Then I asked for DV over the phone, but then they threatened me that if I do DV them, they won't have any settlement offers for me. So now I'm asking a bunch of questions across various boards.

You have to DV IN WRITING....you cannot do it over the phone. They are under no obligation to send you anything if you verbally request it.

More than likely they cannot provide you with anything...having gone from Providian to WAMU to Chase to AA....there is no way they can come up with the card holder agreement...or statements I would guess.

well, this isnt 30%, remember that the period of time was 9 months. So, this debt increased by 30% in 9 months. That gives you an interest rate over 40%. We are apparently talking about a credit card, since you mentioned Providian and WaMu....so it is possible, but considering that youre dealing with Asset Acceptance, I would not trust a single thing they say or do.

Of course they threatened you with that, it may well be because they cannot validate it properly. Dont let that threat scare you off--you have rights under federal law and they are trying to get you to give those rights up. DO NOT GIVE IN TO THEM.

Okay, I Just found something interesting when I recheck my stash of mails. I found a letter from Asset, that dated back to May 2011, or 5 months after the other letter that I got, that said I owe 13,000. On the 2nd letter I got, it says 13,500. So only 500 interests in the last 5 months. But when I called in september they said 17600. WTFBBQ???!!! How the hell did they charge 500 in five months, then 4000 in 4 months?

Is this illlegal? Is there anything I can do about this? Also I think they might have sold my debt.

I just got called from ARS National Services INC. Is that a CA company or are they one's that are working on behalf of Assets? They said they were working on behalf of ARS, but then I remember that I got a letter from them on the 17th of september. I hope it gotten sold, because then I can do a proper DV.

Okay I was mistaken about the amount. On december 1 2010 they sent me a letter that I owe 13,577.86. Then on May 16, 2011 they through a recovery service, sent a letter saying I owed 13,705.47. That's only 200 differrence. Any then on September 15th, they say I owe 17,670.

I'm ready to sue! This is extortion and illegal (is it?). The interest rate is insane!!!! Worst than those pay day loans. How the hell can I get charge 200 interest in 5 months and then 4 thousand in another 4 months?

Someone tell me some kinda law is broken? I have looked at provdian staements and the max interest is 24%.

What can I do about this?

If I got a case, base on some of your advice, I will lawyer up. E-mail the CEO (i just bought 25 dollars in shares in the company) just so I can get the e-mail. E-mail the AJ in their state and my state.

Anyone got any advice? Also I have sent out DV letters.

Anyone got any advice. I was actually wrong about the interest amount. Just double check. It was actually 200 dollars in 5 months, and then 4,000 in the next 4 months.

Isn't this illegal to just randomly charge interest like that and that high of an amount?

I will lawyer up if someone can give me advice. I also bought 5 shares of the company in the stock exchange to get the ceo's e-mail. I will call the AJ in wisconsin too if I have to.

ZOMG I think i might have had the best news in a long ass time. After 50 minutes of digging through my box of all old mail, (I collect all my mails and never threw them away, thank god!) I found the cardmember agreement right before my account was closed (wasn't dated though).

Now someone tell me if this is correct or not. Please please please, let this be good news. They sent me the new agreement, right after WAMU was taken over by Chase. I'm guessing it was around Febuary 2009. Because it says "Effective Immediately March 6th 2009...." Here is what it says under Default/Collection

[QUOTE]DEFAULT/COLLECTION

We May consider you to be in default if any of these occurs:
[INDENT]- WE do not receive at least the minimum amount due by the date and time due as shown on your billing statement
- You exceed your credit line
- You fail to comply with the terms of this agreement or any agreeement with one of our related companies.
- We obtain information that causes us to believe that you may be unwilling or unable to pay your debts to us or to othres on time.
- You file for bankruptcy
- You become incapcaitated or in the event of your death.
[/INDENT]
If we consider your account to be in default, we may close your account without notice and require you to pay interst at the rate of two percent (2%) a month on the unpaid balance when we deem your account to be six or more milliong cycles past due. To the extent permitted by law, if you are in default because you have failed to pay us, you will pay our collection costs, attorneys fees, court osts, and all other expenses of enforing our rights under agreement.[/QUOTE]

So if I read this right, according to that my interest rate is 2% right? Also I was searching for the cardmember agreement online and found it here https://www.chase.com/online/card_feed/document/COL00001.pdf But this one is the newest one and shouldn't apply to my account. Also it doesn't say anything about 2% on it (Page 3 under Default/Collection). I can scan it and send it to anyone if anyone needs it.

So can I sue Assets for trying to jack up my balance? I think they did that on purpose right when I called them to extort money out of me. I lost a shit ton of sleep and hair on that balance.

They know the true balance too I believe. Fucken bastards are trying to get more money out of me.

Anyone can advise?

Hang on a minute there--you need to slow down and reread that. It does not say 2%, it says 2% PER MONTH. This comes out to 24% annually. So, without a breakdown of exactly what the extra 40% is for, you dont have sufficient information to file a suit against them. If they say "it is interest" then you have what you need. There are no doubt extra fees added on for collection costs, etc etc. This is why you need to DV in writing and dispute the claim that you owe this money. You want a complete breakdown.

Right, I know about the interest, but still don't know how they added 4k in 4 months, when they only added 200 dollars in 5 months prior. Also I doubt they have my original TOS agreement either.

Waiting on the DV letter reply right now.

But apparently after checking my credit report I noticed that the last reported date that they told the CRA was on the 24th of september and that it said on there, 14,000. But the letter that I got from them on the 15th of september said 17,000.

So they are reporting to the CRA 14k, but telling me i owe 17k. I seriously think they are trying to extort me.

The best thing you can do while waiting for their DV reply is to make sure you have a printed copy of that credit report. In fact, if you have not already, I would print out all three of your credit reports and check between them to see how they reported it on the others. At this point you have what looks to be solid evidence of their wrongdoing....make sure you hold onto it, as it will come in handy should you choose to pursue legal action for their violations.

Let us know what they respond with, we will be happy to help.