Debt verified -- now what? Wait to be sued? Set up payment plan?

Date: Tue, 03/24/2009 - 14:57

Submitted by briebeaz
on Tue, 03/24/2009 - 14:57

Posts: 15 Credits: [Donate]

Total Replies: 2

Back in January, I received a letter from a lawyer who wanted to sue me for an old Bank of America credit card I defaulted on. They said I owed $6200 when the final balance before charge-off was $3100. I did the debt verification and validation thing and just received another letter from the lawyer. This time he's asking me to contact his office to "discuss the sum of $3100 plus interest at the rate of 27.7% per annum." He wants to hear from me within 10 days -- the letter is dated March 19 and I received it on Monday..

What do I do now? I owe the debt -- one of the documents I received during the validation process was an old statement with the amount of $3100. I have no money to settle the debt and am broke until Friday. I could possibly manage to pay off the debt at $50-$100 per month, but there's no way in hell I can afford the full amount upfront. How do I set up a payment plan? Can I do it in a letter? I really don't want to talk to this person on the phone.

Thanks in advance for any advice you guys might have. :)

Well, so far her has only validated the fact you owe $3100. He

Well, so far her has only validated the fact you owe $3100. He would need to send you a copy of the signed contract/agreement that allows for the 27.7% interest. That seems high to me, my state (Texas) says that only 6% can be charged if there is no contract...I imagine your state will have similar laws...you should look it up...but regardless of that, this lawyer needs to prove he is legally able to charge you that interest rate.

When was the letter postmarked? The letter was dated the 19th, would be interesting to see if he held onto it for a couple days.

Send him another letter and point out that so far he has only validated the original balance owed, not the interest. If he wishes to charge you the interest as well, then he needs to send you the documentation showing that rate is allowed. You could also include that you are perfectly willing to set up a payment arrangement on the original balance of $25 a month (start there for negotiating room). Explain that is all you can afford at this time. Send this letter certified mail return receipt.

Even if he sues you, you will be able to show the judge that you were trying to work things out, but he was being unreasonable (either asking for payments to high for you to afford, or by asking for an interest rate with no proof that said rate is legal.)

lrhall41

Submitted by goldenbast on Tue, 03/24/2009 - 21:50

( Posts: 2884 | Credits: )

Thanks for the response. The letter was postmarked on the 19th,

Thanks for the response. The letter was postmarked on the 19th, but I didn't get it until Monday because of the weekend.

Is there a letter template online I can follow to ask for a copy of the country and request a payment plan? I'm unsure of what exactly to say in the letter.

Thanks.

lrhall41

Submitted by briebeaz on Wed, 03/25/2009 - 11:32

( Posts: 15 | Credits: )