Josh
Nashville,#2Consumer Suggestion
Mon, July 01, 2002
First issue you mentioned is 80% interest ... well, that's not exactly accurate. You may have been billed $230, but it wasn't interest. If it were, it would be nearly 400% interest, considering your charges totalled only $60 (interest is a computation of balance, not limit). This amount is a fee (or fees), and although chokingly large, not illegal ... there are legal limits on how much interest can be charged on revolving credit (I believe Prime Rate plus X%, although I don't know what X is currently). Second, a closed account means they will no longer allow you to charge on it, not that they don't expect you to pay it back or be subject to the repayment terms you agreed to. And I can't say I blame them for closing the account if they received no payment for the first two months the account was open, and it was already over the credit limit (I'm assuming $230 in fees, $60 in charges, probably around $5 in interest the first month, a late fee of $30, $6 in interest the second month, and now a late fee of $30 and overlimit fee of $30 = $391/$300 after two months, approximately) If they are in fact calling you, as you say, 20 - 50 times a week, at all hours day and night, you may have some recourse. The Fair Debt Collections Practices Act (FDCPA) protects the consumer from just this. I'd have to go back and check, but I believe in most states, legal call hours are 8am - 8pm 7 days a week. And maximum number of calls are one Right-Party Connect (meaning they talk to the account holder) per week. If they are violating the FDCPA, contact your state's Attorney General and see if you can get assistance. Couple tips that might help out: FDCPA only technically applies to third-party collection agencies, although most companies who use in-house collections voluntarily abide by these rules. A right party connect (RPC) means they talk to the account holder...no answer, answering machine, kids answer, etc, means they can keep calling unlimited times until they get that RPC. If you aren't going to pay, can't pay, don't want to pay, or whatever, answer the phone. They will ask for you, "May I speak to John Smith?" ... answer, "This is John Smith". Now they jump into collection mode, "Mr. Smith, this is Joe Nobody from The Big Bad Bank, calling about your past due credit card" ... cut them off with "Ahh, ok, thank you" and hang-up. They just made a RPC, established their identity, and the call ended - viola, no more calls for 7 days. Granted, this has to be done weekly, but it works. If they call back, call them out "Are you aware you are in violation of the FDCPA?" and hang-up again. Use the acronym, I assure you every collector knows what FDCPA stands for ... and most know they are PERSONALLY liable for fines up to $5000 for violating it, and the company they represent is liable at a much higher rate. Last tip, move to Pennsylvania. They can't garnish wages, sue you, put a lien on your property, they can only call once a MONTH per RPC, and they can't even call more than once a week if you don't answer. They can't call on Sunday, they can't call you at work if you submit a letter requesting such.
Josh
Nashville,#3Consumer Suggestion
Mon, July 01, 2002
First issue you mentioned is 80% interest ... well, that's not exactly accurate. You may have been billed $230, but it wasn't interest. If it were, it would be nearly 400% interest, considering your charges totalled only $60 (interest is a computation of balance, not limit). This amount is a fee (or fees), and although chokingly large, not illegal ... there are legal limits on how much interest can be charged on revolving credit (I believe Prime Rate plus X%, although I don't know what X is currently). Second, a closed account means they will no longer allow you to charge on it, not that they don't expect you to pay it back or be subject to the repayment terms you agreed to. And I can't say I blame them for closing the account if they received no payment for the first two months the account was open, and it was already over the credit limit (I'm assuming $230 in fees, $60 in charges, probably around $5 in interest the first month, a late fee of $30, $6 in interest the second month, and now a late fee of $30 and overlimit fee of $30 = $391/$300 after two months, approximately) If they are in fact calling you, as you say, 20 - 50 times a week, at all hours day and night, you may have some recourse. The Fair Debt Collections Practices Act (FDCPA) protects the consumer from just this. I'd have to go back and check, but I believe in most states, legal call hours are 8am - 8pm 7 days a week. And maximum number of calls are one Right-Party Connect (meaning they talk to the account holder) per week. If they are violating the FDCPA, contact your state's Attorney General and see if you can get assistance. Couple tips that might help out: FDCPA only technically applies to third-party collection agencies, although most companies who use in-house collections voluntarily abide by these rules. A right party connect (RPC) means they talk to the account holder...no answer, answering machine, kids answer, etc, means they can keep calling unlimited times until they get that RPC. If you aren't going to pay, can't pay, don't want to pay, or whatever, answer the phone. They will ask for you, "May I speak to John Smith?" ... answer, "This is John Smith". Now they jump into collection mode, "Mr. Smith, this is Joe Nobody from The Big Bad Bank, calling about your past due credit card" ... cut them off with "Ahh, ok, thank you" and hang-up. They just made a RPC, established their identity, and the call ended - viola, no more calls for 7 days. Granted, this has to be done weekly, but it works. If they call back, call them out "Are you aware you are in violation of the FDCPA?" and hang-up again. Use the acronym, I assure you every collector knows what FDCPA stands for ... and most know they are PERSONALLY liable for fines up to $5000 for violating it, and the company they represent is liable at a much higher rate. Last tip, move to Pennsylvania. They can't garnish wages, sue you, put a lien on your property, they can only call once a MONTH per RPC, and they can't even call more than once a week if you don't answer. They can't call on Sunday, they can't call you at work if you submit a letter requesting such.
Josh
Nashville,#4Consumer Suggestion
Mon, July 01, 2002
First issue you mentioned is 80% interest ... well, that's not exactly accurate. You may have been billed $230, but it wasn't interest. If it were, it would be nearly 400% interest, considering your charges totalled only $60 (interest is a computation of balance, not limit). This amount is a fee (or fees), and although chokingly large, not illegal ... there are legal limits on how much interest can be charged on revolving credit (I believe Prime Rate plus X%, although I don't know what X is currently). Second, a closed account means they will no longer allow you to charge on it, not that they don't expect you to pay it back or be subject to the repayment terms you agreed to. And I can't say I blame them for closing the account if they received no payment for the first two months the account was open, and it was already over the credit limit (I'm assuming $230 in fees, $60 in charges, probably around $5 in interest the first month, a late fee of $30, $6 in interest the second month, and now a late fee of $30 and overlimit fee of $30 = $391/$300 after two months, approximately) If they are in fact calling you, as you say, 20 - 50 times a week, at all hours day and night, you may have some recourse. The Fair Debt Collections Practices Act (FDCPA) protects the consumer from just this. I'd have to go back and check, but I believe in most states, legal call hours are 8am - 8pm 7 days a week. And maximum number of calls are one Right-Party Connect (meaning they talk to the account holder) per week. If they are violating the FDCPA, contact your state's Attorney General and see if you can get assistance. Couple tips that might help out: FDCPA only technically applies to third-party collection agencies, although most companies who use in-house collections voluntarily abide by these rules. A right party connect (RPC) means they talk to the account holder...no answer, answering machine, kids answer, etc, means they can keep calling unlimited times until they get that RPC. If you aren't going to pay, can't pay, don't want to pay, or whatever, answer the phone. They will ask for you, "May I speak to John Smith?" ... answer, "This is John Smith". Now they jump into collection mode, "Mr. Smith, this is Joe Nobody from The Big Bad Bank, calling about your past due credit card" ... cut them off with "Ahh, ok, thank you" and hang-up. They just made a RPC, established their identity, and the call ended - viola, no more calls for 7 days. Granted, this has to be done weekly, but it works. If they call back, call them out "Are you aware you are in violation of the FDCPA?" and hang-up again. Use the acronym, I assure you every collector knows what FDCPA stands for ... and most know they are PERSONALLY liable for fines up to $5000 for violating it, and the company they represent is liable at a much higher rate. Last tip, move to Pennsylvania. They can't garnish wages, sue you, put a lien on your property, they can only call once a MONTH per RPC, and they can't even call more than once a week if you don't answer. They can't call on Sunday, they can't call you at work if you submit a letter requesting such.
Josh
Nashville,#5Consumer Suggestion
Mon, July 01, 2002
First issue you mentioned is 80% interest ... well, that's not exactly accurate. You may have been billed $230, but it wasn't interest. If it were, it would be nearly 400% interest, considering your charges totalled only $60 (interest is a computation of balance, not limit). This amount is a fee (or fees), and although chokingly large, not illegal ... there are legal limits on how much interest can be charged on revolving credit (I believe Prime Rate plus X%, although I don't know what X is currently). Second, a closed account means they will no longer allow you to charge on it, not that they don't expect you to pay it back or be subject to the repayment terms you agreed to. And I can't say I blame them for closing the account if they received no payment for the first two months the account was open, and it was already over the credit limit (I'm assuming $230 in fees, $60 in charges, probably around $5 in interest the first month, a late fee of $30, $6 in interest the second month, and now a late fee of $30 and overlimit fee of $30 = $391/$300 after two months, approximately) If they are in fact calling you, as you say, 20 - 50 times a week, at all hours day and night, you may have some recourse. The Fair Debt Collections Practices Act (FDCPA) protects the consumer from just this. I'd have to go back and check, but I believe in most states, legal call hours are 8am - 8pm 7 days a week. And maximum number of calls are one Right-Party Connect (meaning they talk to the account holder) per week. If they are violating the FDCPA, contact your state's Attorney General and see if you can get assistance. Couple tips that might help out: FDCPA only technically applies to third-party collection agencies, although most companies who use in-house collections voluntarily abide by these rules. A right party connect (RPC) means they talk to the account holder...no answer, answering machine, kids answer, etc, means they can keep calling unlimited times until they get that RPC. If you aren't going to pay, can't pay, don't want to pay, or whatever, answer the phone. They will ask for you, "May I speak to John Smith?" ... answer, "This is John Smith". Now they jump into collection mode, "Mr. Smith, this is Joe Nobody from The Big Bad Bank, calling about your past due credit card" ... cut them off with "Ahh, ok, thank you" and hang-up. They just made a RPC, established their identity, and the call ended - viola, no more calls for 7 days. Granted, this has to be done weekly, but it works. If they call back, call them out "Are you aware you are in violation of the FDCPA?" and hang-up again. Use the acronym, I assure you every collector knows what FDCPA stands for ... and most know they are PERSONALLY liable for fines up to $5000 for violating it, and the company they represent is liable at a much higher rate. Last tip, move to Pennsylvania. They can't garnish wages, sue you, put a lien on your property, they can only call once a MONTH per RPC, and they can't even call more than once a week if you don't answer. They can't call on Sunday, they can't call you at work if you submit a letter requesting such.
julia
ironton,#6Consumer Suggestion
Sun, June 23, 2002
I am sorry for your problems. You should have read your disclosure of terms when you applied for the credit card or the credit card agreement sent with the card. Most people avoid reading the fine print. These notices are considered binding legal documents and as with any credit card or loan if you use the services (i.e. make purchases or authorize charges) you agree to the terms of the credit card and accept them. I work for a bank and know quite well how many consumers expect something for nothing. Far too often consumers fail to read the contracts before signing them and then cry wolf when faced with the penalities caused by their own actions. If you want to ruin your credit don't pay your bill. You will get your summons to appear in court in front of a arbitrator (selected by the bank) explain you were ignorant and never read the agreements. The arbitrator will find you liable and will have to pay not only the bill you owe plus all associated court cost and attorney fees. If you are still sitting there thinking you won't get sued, think again! In today's economy and with the fdic cracking down on banks catering to high risk individuals, banks by the thousands are utilizing all legal means to collect on debts even if they are a small balance. Banks can and do attach leins to property, garnish wages and place claims on tax refunds. Do yourself a favor. Pay your bill now before you have to pay a much bigger bill. Next time read before you sign or use!