Comments on: Credit card company practices hit new low

by: Mnemosyne

Thu, 06 Dec 2007 14:30:33 +0000

Here’s an article from Bankrate.com about the statute of limitations. Next time the collections people call, I can really tell them to eff off since California’s limit is 4 years and they’re going after me for something from 1989.

by: Tina H

Thu, 06 Dec 2007 12:44:56 +0000

We in the US have rights under the Fair Debt Collection Practices Act including, IIRC, the right to tell a collector to cease calling. The Federal Trade Commission website www.ftc.gov would be a good place to start researching the issue for those who need more information.

by: seeker6079

Wed, 05 Dec 2007 19:26:13 +0000

This is where we come back to a complaint that I have made before, here amongst other places: most police law and law enforcement agencies are pathetically understaffed and underqualified to address financial crimes matters… and even less interested. Corrupt shakedowns like this are often crimes, but not seen as “real” crimes by many dinosaurs in blue.

by: hp

Wed, 05 Dec 2007 18:40:00 +0000

Hmm. The links I’m finding are all shady, but anyhow:

http://www.creditinfocenter.com/debt/settle_debts.shtml

for example.

Basically, if the debt is more than 7 years old and a collection agency tries to report it to the credit bureaus, you can have it removed. For credit reports/credit scores, it’s a straight seven years from “gaining” the bad debt.

There’s a growing industry of even-more shady collection agencies in the US. A couple of years back, it was that they started buying debt right at the 7 year point and harassing/scaring people who didn’t know that the debt should “expire” from the credit report at that point. They also tried to disguise what was going on from the credit bureaus–reporting this old debt as “new” debt since they were a new collector. You may need a bit of documentation but the credit report bureaus will remove reports done in this manner.

Based on your stories now it seems like they’ve gotten even shadier–harassing people over paid debt. Gather what documentation you can and tell them to go bleep themselves. If they report it, have it removed. Check your state’s limitations on suits over consumer debt. If you’re still within it, at least they’re going to have to provide a lot more documentation on the debt if you go to court and if they’re as shady as they seem, they probably won’t want to go to that length.

by: hp

Wed, 05 Dec 2007 18:29:40 +0000

For those of you having problems with collection agencies demanding on debts already paid and living in the United States, here’s something to know. If the debt is more than 7 years old, tell them to go bleep themselves. It cannot affect your credit report/score if the debt is more than 7 years old.

If your state’s statute of limitations on debt is more than 7 years, you can still be sued over it by the collections agency. But, if they’re on shaky ground anyhow (especially the stories of the collection agencies trying to collect on already-paid debt–this is a growing scam problem in the US), chances are very, very good it is never going to happen.

by: Colin

Wed, 05 Dec 2007 18:16:06 +0000

They need to re-evaluate this universal default rule. It’s clearly borderline predatory.

And why is it that credit card issuers raise the APR of borrowers who look like they won’t pay?

If they didn’t have the money at the lower APR, they sure as hell won’t have it when their payments get bumped higher.

by: Colin

Wed, 05 Dec 2007 18:12:58 +0000

I was shocked when I heard this. These credit card issuers really need to notify you if they plan to pull your credit.

Universal credit default is borderline predatory, and really needs to be re-evaluated.

by: Interrobanger

Wed, 05 Dec 2007 17:09:29 +0000

I work for a merchant group, online at UnfairCreditCardFees.com, and believe me, it’s a thrill anytime one of these hearings come up. This is Levin’s second of the year, Chris Dodd held some good ones also earlier this year, and this summer

Consumers aren’t the only ones with a grievance against the industry. The biggest issue is the interchange fee, which was originally a cost-based transaction fee, but in recent years has turned into a way for banks to inflate their profits even more. Transaction costs go down, the interchange fee goes up. Interesting!

Conyers has also held some good hearings this year, and he’s touched on the interchange issue. I hope that issue is folded into any legislation that happens on this front. It would be too bad if one issue was solved, but the other left unresolved.

by: bmc90

Wed, 05 Dec 2007 14:09:10 +0000

My husband used to work in this utterly godless industry and here is his advice. When your credit card company sends you a statement saying they are changing your terms, especially if you are carrying a balance, respond within the alloted time in writing in exactly the way the notice says to and say you don’t agree to the change, and if they won’t let you keep your current terms, to close the account. If you rolled to a lower rate product, you can just keep paying it off, but they can’t change the rate on you. Other than carrying no debt, your best bet for staying safe if is to make sure you read the first agreement carefully before you sign up and then not let them change it on you.

by: mnemosyne

Wed, 05 Dec 2007 11:30:16 +0000

A debt I paid off many years ago suddenly reappeared.

Yep. A collections agency has been calling me for 6 months about a $500 debt I paid 15 years ago to Bank of America but, because it was 15 years ago, I don’t still have the canceled check. Their robot calls at least three times a week, but they’re not getting a dime because they have no proof that I even owe the money.

Atrios had a post a few months ago about a collections agency that’s basically engaging in open fraud by claiming that ancient debt still exists, and I found several of the numbers that call me on there, so I know it’s from them and is bogus. Unfortunately, that doesn’t stop them from calling.