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OSI Old Collection

Date: Wed, 05/07/2008 - 16:03

Submitted by anonymous
on Wed, 05/07/2008 - 16:03

Posts: 202330 Credits: [Donate]

Total Replies: 7


I just received a letter from OSI stating they are attempting to collect a debt from 2000. I got a call from an agent that stated my social security number had been flagged since it was a federal debt to the military exchange whenI was in the Navy. I checked all 3 credit files and there were no public notices. Here is what the letter states:

Principal due: $544.68
Interest andPenalties Due: $884.85
Collection Fee: $393.56
Administration Fee: $51.02
Total: $1874.11

Hasn't the statue of limitations expired? Are all of the interest and fees legal? Can they intimidate me regarding my SSN being flagged by the Govt.?


something else you should look into--in a lot of cases, they cannot simply add interest and collection fees--it has to be allowed in the original credit agreement or it is illegal. Remembering when I was in the service, I dont recall any written agreement that was in place when I used the exchange, but then again I didnt use credit for much of anything back then. Did you sign any paperwork on this back in 2000?? If so, you need to obtain a copy and review the terms and conditions. If there is nothing about interest or collection fees in any written agreement you signed, then those charges are illegal. If there was no written agreement, they cannot simply just start charging you whatever they choose, either. In a credit situation they MUST be able to show that you agreed to those terms before they can legally invoke them.

Also, something else seems rather fishy here. You have a federal debt, and the gov't doesnt play around with federal debts--they usually just go after your income tax return or your wages. So why would they need to hire a collection agency? if they are just gonna tap your tax return, there wouldnt be a need for it. Also, you just got contacted by them, which didnt even give you any opportunity to do anything about the debt, and already they hit your tax return.

I would contact the Navy and see who they can direct you to, to even verify that this CA is legally collecting on the debt. That may also help you to get copies of any documents you signed, etc etc.


lrhall41

Submitted by skydivr7673 on Thu, 05/08/2008 - 15:28

( Posts: 2036 | Credits: )