Chavez Posted May 3, 2007 Share Posted May 3, 2007 Long story...well, less long. Doing a favor for a buddy of mine; he had an old credit card he "didn't recall" opening (I have no reason to doubt he was being truthful, as he copped to all the other stuff he had in collections); I wanted to get the info as to where the charges came from, but the CC company had sold the debt off to a collections agency, and neither had the details. Bottom line is the original $3k bill is now at $7k+ (behold the power of compound interest!); I'm wondering what the best way is to find out if somebody jacked his credit on the card - which seems slim - or to get him out of paying it (the collections company made it sound like the $4k in accrued interest was negotiable - but how low can I expect them to go?). Anyone who has a clue on this one, please chime in. Right now, I'm figuring the options are either cry credit fraud and make the CC company prove my buddy charged it up, or try to negotiate the collections company down to the 3500-4000 range and eat it. Quote Link to comment Share on other sites More sharing options...
wiegie Posted May 3, 2007 Share Posted May 3, 2007 If they can't prove where the charges came from, how can they even prove that he owes them money at all? I'd make them prove that he owes the money before I give them a penny. (Especially because if you give them even a penny it could probably be used as evidence that your "friend" actually owed them the money.) (of course, if you get thrown into debtor's prison, don't blame me) Quote Link to comment Share on other sites More sharing options...
Chavez Posted May 3, 2007 Author Share Posted May 3, 2007 I believe the burden of proof is on the borrower. The main problem is that the account is 7 years old. I was giving him the "how the f*ck did this happen?" speech, and he basically said "I was an idiot. I'm less of one now." Quote Link to comment Share on other sites More sharing options...
Ziachild007 Posted May 3, 2007 Share Posted May 3, 2007 Here is one thing I found out. If you prove that the debt was not his, it should be removed from all of his credit reports and the company trying to collect will close the file, so to say. However, this account can (and probably will) be sold again to another collections company and you can expect to go through the same thing all over. Granted it will not be on his report, but from what I understand, there is nothing you can do from having the account sold over and over again. Quote Link to comment Share on other sites More sharing options...
Riffraff Posted May 3, 2007 Share Posted May 3, 2007 If you can get a settlement for half of the total. Do so. If the collections company can get any of it back, they make a profit (they probably bought it at about a quarter of the cost of the total owed). Sucks to owe, but it gets it off his record quicker. Quote Link to comment Share on other sites More sharing options...
wiegie Posted May 3, 2007 Share Posted May 3, 2007 I believe the burden of proof is on the borrower. In that case, I just found a document that says that you owe me one million dollars. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted May 3, 2007 Share Posted May 3, 2007 In that case, I just found a document that says that you owe me one million dollars. How odd. I did too. Quote Link to comment Share on other sites More sharing options...
Azazello1313 Posted May 3, 2007 Share Posted May 3, 2007 i'm sure the debt is his. it's probably just predominantly late fees, penalties, exorbitant interest, etc. good chance they'll be willing to negotiate something more reasonable if you work em. Quote Link to comment Share on other sites More sharing options...
godtomsatan Posted May 3, 2007 Share Posted May 3, 2007 A credit counseling service will work with you on this. Quote Link to comment Share on other sites More sharing options...
Dr. Love Posted May 3, 2007 Share Posted May 3, 2007 I think that credit card companies are only obligated to give you a few months to dispute charges that aren't yours. Seven years is way out of the range. Even if the charges weren't his, there's no way to get out of paying them now except for bankruptcy. Negotiate the best deal and pay the charges, Chavez... um, I mean your "friend" should negotiate and pay the charges. Quote Link to comment Share on other sites More sharing options...
Furd Posted May 3, 2007 Share Posted May 3, 2007 For goddsakes, don't admit to anything. If the debt is seven years old there likely isn't a goddamn thing they can do to you. A lawsuit is probably out of the question, given what is called the statute of limitations, which governs the time frame in which you must file a lawsuit. Their action would be for breach of contract, and the SOL for breach of contract is typically six years. It may differ in your state. In any event, even if it hasn't run, make them file a lawsuit. Furthermore, credit reporting companies can't report a debt that is older than seven years. The danger here is that you do something to acknowledge that you owe the debt. This provides an argument that the limitations and reporting period begin anew. There is a hugh industry involving companies that buy old, what should be uncollectable debt for pennies on the dollar. They then harass people into making a payment or payments that they didn't have to make. I bet you that this happened in your friends case. Quote Link to comment Share on other sites More sharing options...
Dr. Love Posted May 3, 2007 Share Posted May 3, 2007 For goddsakes, don't admit to anything. If the debt is seven years old there likely isn't a goddamn thing they can do to you. A lawsuit is probably out of the question, given what is called the statute of limitations, which governs the time frame in which you must file a lawsuit. Their action would be for breach of contract, and the SOL for breach of contract is typically six years. It may differ in your state. In any event, even if it hasn't run, make them file a lawsuit. Furthermore, credit reporting companies can't report a debt that is older than seven years. The danger here is that you do something to acknowledge that you owe the debt. This provides an argument that the limitations and reporting period begin anew. There is a hugh industry involving companies that buy old, what should be uncollectable debt for pennies on the dollar. They then harass people into making a payment or payments that they didn't have to make. I bet you that this happened in your friends case. I stand corrected. Quote Link to comment Share on other sites More sharing options...
keggerz Posted May 3, 2007 Share Posted May 3, 2007 I believe the burden of proof is on the borrower. The main problem is that the account is 7 years old. I was giving him the "how the f*ck did this happen?" speech, and he basically said "I was an idiot. I'm less of one now." For goddsakes, don't admit to anything. If the debt is seven years old there likely isn't a goddamn thing they can do to you. A lawsuit is probably out of the question, given what is called the statute of limitations, which governs the time frame in which you must file a lawsuit. Their action would be for breach of contract, and the SOL for breach of contract is typically six years. It may differ in your state. In any event, even if it hasn't run, make them file a lawsuit. Furthermore, credit reporting companies can't report a debt that is older than seven years. The danger here is that you do something to acknowledge that you owe the debt. This provides an argument that the limitations and reporting period begin anew. There is a hugh industry involving companies that buy old, what should be uncollectable debt for pennies on the dollar. They then harass people into making a payment or payments that they didn't have to make. I bet you that this happened in your friends case. VERY VERY GOOD INFO HERE. Quote Link to comment Share on other sites More sharing options...
keggerz Posted May 3, 2007 Share Posted May 3, 2007 http://www.creditinfocenter.com/rebuild/st...mitations.shtml Quote Link to comment Share on other sites More sharing options...
detlef Posted May 3, 2007 Share Posted May 3, 2007 I was one of those idiots that signed up for credit cards at my college campus and promptly maxed them out. Several years later, they somehow hadn't magically paid themselves off and ended up in collections. They were very quick to take way less than I owed and I jumped at the chance. I suggest your friend do the same. It has now been a long time since that went down and my credit score is back into a good zone. Quote Link to comment Share on other sites More sharing options...
Savage Beatings Posted May 3, 2007 Share Posted May 3, 2007 If nothign else works, and he is desperate to make this go away, as a last resort he could offer a settelement of say 30% or so. It might take some negotiating but most collections agencies will accept a fraction of the total debt if they can just get some money out of it rather than none. But once you enter into negotiations, you are in essence admitting that you owe the debt, so it really has to be as a last resort to stop the harrassment. Quote Link to comment Share on other sites More sharing options...
Furd Posted May 3, 2007 Share Posted May 3, 2007 Some of the responses to this post demonstrate why collection agencies harass people into paying money that they have no obligation to pay. And that money has nothing to do with paying off the original creditor. It goes right into the pocket of the collection agency. Quote Link to comment Share on other sites More sharing options...
evil_gop_liars Posted May 3, 2007 Share Posted May 3, 2007 Some of the responses to this post demonstrate why collection agencies harass people into paying money that they have no obligation to pay. And that money has nothing to do with paying off the original creditor. It goes right into the pocket of the collection agency. Good info here. Quote Link to comment Share on other sites More sharing options...
alexgaddis Posted May 3, 2007 Share Posted May 3, 2007 (edited) I believe the burden of proof is on the borrower. The main problem is that the account is 7 years old. I was giving him the "how the f*ck did this happen?" speech, and he basically said "I was an idiot. I'm less of one now." Sounds to me like it probably was his and he forgot over the years...I fear he may have to settle it... no problem, just charge him 3 pts. in the back and move on... Edited May 3, 2007 by alexgaddis Quote Link to comment Share on other sites More sharing options...
keggerz Posted May 3, 2007 Share Posted May 3, 2007 Sounds to me like it probably was his and he forgot over the years...I fear he may have to settle it... no problem, just charge him 3 pts. in the back and move on... even if it is his and its past the statue of limitations HE WILL NOT HAVE TO PAY IT! i think ramhock works in collections for a CC company, fwiw Quote Link to comment Share on other sites More sharing options...
Azazello1313 Posted May 3, 2007 Share Posted May 3, 2007 Some of the responses to this post demonstrate why collection agencies harass people into paying money that they have no obligation to pay. And that money has nothing to do with paying off the original creditor. It goes right into the pocket of the collection agency. so since it's almost 7 years, maybe you're right and he can weasel his way out of paying his debts with no negative consequences. some people might quibble with your "no obligation to pay" characterization, though. it IS his debt. Quote Link to comment Share on other sites More sharing options...
Azazello1313 Posted May 3, 2007 Share Posted May 3, 2007 by the way, he said that the account is 7 years old. that doesn't mean all of the debt is. they can and will f*ck with his credit pretty bad up through those 7 years. Quote Link to comment Share on other sites More sharing options...
keggerz Posted May 3, 2007 Share Posted May 3, 2007 so since it's almost 7 years, maybe you're right and he can weasel his way out of paying his debts with no negative consequences. some people might quibble with your "no obligation to pay" characterization, though. it IS his debt. if it is his debt and he is going to pay anyone it should be the original creditor and not a collection agency. Quote Link to comment Share on other sites More sharing options...
Azazello1313 Posted May 3, 2007 Share Posted May 3, 2007 if it is his debt and he is going to pay anyone it should be the original creditor and not a collection agency. the original creditor who he failed to pay sold the debt. so he doesn't owe them anymore, he owes the collection agency. this transfer does not invalidate the debt, and it certainly doesn't change the fact that he spent the money and never paid it back. Quote Link to comment Share on other sites More sharing options...
Brewer Posted May 3, 2007 Share Posted May 3, 2007 (edited) so since it's almost 7 years, maybe you're right and he can weasel his way out of paying his debts with no negative consequences. some people might quibble with your "no obligation to pay" characterization, though. it IS his debt. Edited by brewer so as not to offend anyone. ps - Landry Edited May 3, 2007 by Brewer Quote Link to comment Share on other sites More sharing options...
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