My husband got a Gateway computer financed by MBNA. He signed up over the internet, never signed any paperwork, and got the computer. He quit paying MBNA, and the account defaulted Oct. 2004. Apparently, the account was purchased by Worldwide Asset Purchasing, LLC.
We've received a couple of letters from the "Law Offices of Gerald E. Moore & Associates, PC" regarding the debt. The amount that they were demanding was more than what my husband's account balance was at the charge-off date. He chose to ignore the letters, since I've seen on different websites how close to illegal these so-called lawyers are.
Today, he got a certified letter I signed for. According to the paperwork, Worldwide Asset Purchasing is "represented" by Gerald Moore. Here's what it says, on the first page, in bold.
RESPONDENT(S): THIS IS AN ARBITRATION CLAIM AGIANST YOU FOR MONEY OR OTHER RELIEF. YOU HAVE 30 DAYS TO SERVE THE CLAIMANT WITH A WRITTEN RESPONSE. IF YOU DO NOT SERVE THE CLAIMANT AND FILE WITH THE NATIONAL ARBITRATION FORUM A WRITTEN RESPONSE, AN AWARD MAY BE ENTERED AGAINST YOU.
Here's another line.
"Respondent(s)is/are indebted to Worldwide Asset Purchasing, LLC, as successor in interest to MBNA America Bank, N.A., for interest accrued since the time of charge-off in the amount of $1955.03."
Since when can the collection agencies charge interest?
I got on the National Arbitration Forum website that was provided with everything. It talks about these "cases" not having to go thru the courts, yet Gerald E. Moore also tacked on over $1K worth of lawyers' fees to my husband's total.
We live in Indiana, if that helps. What's up with this arbitration group? If there was no card, then there was no card agreement where my husband agreed to go to arbitration to settle outstanding debt. Any advice?
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.