Debt collections after 14 years??

[MJPassion]

FOR ALL

Get & read the book:
"The Creature From Jekyll Island"
For a better understanding of how banks operate & why they exist in the first place.

I highly recommend it.

 

[MJPassion]

Credit was designed to take advantage of the less informed and only for the advantage of the bank.

That's why "rent to own" stores can get $3000 for a $150 DVD player!
If you can't afford it, you probably don't "need" it.

 

[Snype]

Well for my credit cards I'm only paying 6% interest and it's with capital one... it was a secured card I got way back in like 2005 because I had shit credit.

It sat maxed out for a few years with only minimum payments being made, but on a $750 limit I was only paying like $10/month or something small.

With my grilfriends card she's paying 19.99% interest which is insane, but in both cases if I go and buy a $100 pair of shoes today and pay it off a week from now, then I'm not charged interest on that purchase.

I know this for a fact because we've made purchases, paid them before the month is up and had no additional interest charges taken.



So completely true, and it's gotten to a point now where you see EVERYONE buying shit on credit and you just know that they've gotten into a terrible cycle of maxing out the card, then when they get paid all of their money goes to paying off credit which they then have to live on again.

Only difference is those people are more often than not up into the $10K+ credit amounts.

Between me and my gf we have a combined credit amount of $1750 which is just fine by me and has served us well these few years.

I decline all offers when people are like "hey would you like a free $10 worth of gas just for signing your life away, getting into even more debt, taking a negative hit on your credit rating and generally making your situation worse all around?"

ya, no thanks bud, I have enough credit lol.

Ok maybe the interest starts after the first 30 days but it is still compounded so you are paying more than the 6% that they tell you.

 

[BigJohnny]

Actually, that is how the banks want you to think, Kat.

Credit is for broke people that cannot do math, read through this thread.
Credit was designed to take advantage of the less informed and only for the advantage of the bank. Have you walked into a bank lately? pretty nice place right? they built it with your money.

Lets take the self discipline up another notch. If you take for starters say $1500 and sock it back, label it emergency fund only then when that washer, or dryer, or water heater, or transmission goes out you've got the "cash" to cover it without having to go into "debt" by using the credit card and then it is only an inconvenience and not an emergency.

Myth: Aren't there positive uses of a credit card? Like rebates and airline miles?
Truth: Responsible use of a credit card does not exist. Credit card debt is a major problem in America.

There is no positive side to credit card use. You will spend more if you use credit cards. Even by paying the bills on time, you are not beating the system! But most families don't pay on time. The average family today carries $8,000 in credit card debt according to the American Bankers' Association.

Now let's talk about the rebates. If you were using a credit card at 5%, you would have had to have spent $80,000 to get $4,000 rebates on new cars that lost $6,000 of value when you drove them off the lot. That is not a good deal!

Cash vs. Credit Cards;
When you pay cash, you can "feel" the money leaving you. This is not true with credit cards. Flipping a credit card up on a counter registers nothing emotionally. A study of credit card use at McDonald’s found that people spent 47% more when using credit instead of cash. This is money you could have saved!

If you "have to" use plastic, I suggest a debit card. I use them for travel and the occasional convenience of ordering something over the Internet or phone. Other than that, I use cash.

Personal finance is 80% behavior. You need to cut out habits that make you spend more. You do not build wealth with credit cards. Use common sense. When you play with a multi-billion dollar industry and you think you're going to win at their game, you are naive. You cannot beat the credit card companies.

Little Johnny, Weezard said, your word is your bond, you signed the note, you owe the money, they gotcha. That is how it works.

The borrower is slave to the lender.

Debt free and cash sure is freeing, you can even buy a house and a nice car with cash if you use common sense and learn how to make money work for you instead of making the banks your source.

An issue between myself and my wife is that she works for the US Government and you have to maintain a credit score for security reasons, (The banks even have the USG thinking like they want) so we have agreed to buy her a new car every few years and she has a credit card she uses for gas, but it is paid in full each and every month. I refuse to give the banks another red cent, ever.

I will use IRA's and long term mutual funds, that is how you build wealth. Compound interest.

To much personal info on ICmag for my taste, but there it is.

This may be true for most people but it isn't quite my situation. I want to build my credit and in order to do so I must use credit, however when used responsibly it's helping me out to some degree.

Right now I'm making decent money so I can pay my debts, and thus far I have....so far so good.

Let's look at a recent transaction of mine. We live in an apartment and usually don't have or couldn't afford the change to do laundry every day.

So looking at what I make, I decided to "buy" a nice shiny new stacking set. It was just under $1800 all said and done, and yes I financed it because I know I can afford/pay it.

So I don't HAVE to pay for a year, that choice cost me an additional $69.95... they got me there, ok then. This means I'm not even obligated to pay monthly, but I broke it down and it's only $151/month to pay it off within the year.

That's affordable, so I went that route knowing that I can make monthly payments of any size I choose, and as long as I pay it within the year I'll pay no additional interest.

if I don't pay it, then it'll cost almost $1000 more and I'll have to pay it in one large lump sum.... that I can't do.

So I make monthly payments and have it paid off by the end of the year, it cost me $70 for that option but it'll save me from having to drop $1730 in cash at once which I didn't have at the time.

Since I pay it on time, the company will want to increase my credit line, which IF I use would be done so in much the same way, ONLY for purchase that I know I can afford and pay.

It's the same with our credit cards. If I know I have cash to make a purchase I often times choose to make it on credit then pay it online when I get home.

That will help build my credit, so when I go to the bank and want to take out a mortgage so I can buy a house, they will be more than happy to give me said mortgage.

Do you think I want to live in a ghetto ass apartment my whole life???? FUCK NO.

 

[BigJohnny]

Bottom line is this...

Banks are chartered for the purpose of saving & loaning money.

If, when you got a loan from the bank, you did not receive cash money, the loan was made on fraudulent terms. It is a violation of most banks charter documents to extent to their customers "credit."
If you received a letter of credit or a check, the bank you are dealing with has commited fraud!
You are in no way responsible for paying for a fraudulent loan/debt.

Since you asked the bank to close your account and they refused they are responsible for any monies you freely used. You did not sign a contract for the overdraft protection so you are therefore not responsible for it's payment.

DEBT is Slavery!

It is the business of the banks to put you into debt.

I've recently got a letter from a collection agency for a var loan I got back in 2002. I threw the letter in the fire since the Statute of limitation is obviously up & because of the fact that the bank has had that particular car paid for by 3x its loan.

Here is what you need to do to get those guy from buggin ya...

If they call you again, DO NOT discuss the supposed debt or any options for repayment.
Demand proof of the debt!
A collection agency will not have your contract that ypu signed, no matter what. Therefore, they have zero proof of the debt & they have no recourse in court, so cannot under any circumstances, collect that debt.

I had a collection agency call me once, from Louisiana, and he tried getting all tough over the phone.
I told him, using as clear of language as Icould muster (I was HOT) to shut the fuck up, don't call me any more or I will sue you for harassment. I haven't received a call since then.

Do a Google search & see what you can find.
I'll bet that the answers you've been given here will be similar to what you find.

Lastly, remember this above all else...

"FRAUD VITIATES EVERYTHING!"
Boyce v Grundy

"FRAUD VITIATES THE MOST SOLOMN CONTRACTS, DOCUMENTS, AND EVEN JUDGEMENTS."
U.S. v Throckmorton

"FRAUD DESTROYS THE VALIDITY OF EVERYTHING INTO WHICH IT ENTERS."
Nudd v. Burrows

So I'm wondering if I should call them and ask them to provide proof of the debt??

 

[HempKat]

I decline all offers when people are like "hey would you like a free $10 worth of gas just for signing your life away, getting into even more debt, taking a negative hit on your credit rating and generally making your situation worse all around?"

ya, no thanks bud, I have enough credit lol.

Smart move, once you have enough credit to cover the average emergency 1-2K of credit. The only good reason to accept a credit card offer is if it offers a lower interest rate (and not just for a promotional period) and with the intention of discontinuing the card it replaces. What typically gets people though is they accept a lower rate card offer with the intention of transferring their existing debt to a lower rate but they hold onto the higher rate card and eventually use it again once the lower rate card gets maxed out.

 

[HempKat]

Actually, that is how the banks want you to think, Kat.

No the banks don't want you to think about responsible credit card use because if you pay down your balance every month like you should they make no money off of you. As you point out, the banks tend to count on stupid irresponsible people to make their money off of but that does not make credit cards inherently evil.

My Mom has used credit responsibly all her life and as a result has the highest credit score possible and carries no balance on her credit cards beyond 30 days.

 

[JointOperation]

[CANADIAN/ONTARIO TOPIC]
I'm seeking the advice of the community here in hopes that at least a few of you might know a thing or two about debt collections.

Back when I was 18, had just moved out of my parents house and in with my girlfriend whom just had a baby, I was with CIBC and on social assistance (Welfare) and the bank thought it would be a great idea to extend me (a new, 18 year old client) a $500 overdraft protection on my account.

This was great as I was basically dirt poor, not working yet and could have some money to fall back on.

Well things didn't pan out for a long time and I was unable to pay that off all the while it's accruing interest. I spoke with the bank and tried to close the account and work out some kind of method to repay the money.

They refused to close the account and I was stuck paying interest that I could never pay back.

It was until the interest hit somewhere around $2000 that they decided to close the account and send it to collections. Life took many wrong turns and I was never able to make payments on it because I was struggling just trying to survive.

So time goes by (7 years I think) and eventually it doesn't show up on my credit history and the harassing phone calls and letters to my parents stopped.

Things start finally going well for me only in the last 3-4 years, my credit score is working it's way up, bills are being paid and nothing is in collections.

Now here it is 14 years later and just a week or two ago a letter shows up at my parents house wanting me to pay $2200 that's in collections from CIBC.

I'm at a point in my life where I really don't need this fucking with my credit, things are finally starting to go well, and I'm in a position where I could potentially pay the $2200 or at least setup some payment plan, but it would still really affect me and my ability to support my family.

But I'm pretty sure that after this period of time I shouldn't have to pay that. It's an entirely different company hunting me down this time (NCO).

TL;DR

Had money in collections when I was 18 from the bank, a long time goes by and it doesn't show on my credit history. Now they want the money again 14 years later.




Does anybody know anything about this stuff and if there is anyway other than paying it off for this to be gone from my life?

id ask them whats the lowest they could take . to close out the BS.

 

[BigJohnny]

id ask them whats the lowest they could take . to close out the BS.

If I do that I'd be acknowledging the debt and by doing so it'll start the 2 year clock again, then they could sue me for the entire amount.

 

[MJPassion]

So I'm wondering if I should call them and ask them to provide proof of the debt??

They have proof of the debt. It's called a "bill."

What they don't have, is the contract signed by both the "debtor" & "debtee." (Did I just make those words up? You get the idea.) No signatures... no legaly binding deal. Without a contract, they have nothing to prop their heads above water.

Do not contact them. They will contact you & you can confront them at that time. I think that if you contact them, it resets the clock again. I'm not positive.