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CA charging interest rate [legal interest] [debts]

admin — Sat, 14 Jan 2012 18:20:00 +0000

I am looking for a debt incurred in Colorado. A look at the statutes, the legal interest rate is 8%.
I wonder how big can the interest of free and assembled CA as it is a fixed rule?
Is it a rule that the types of collections may be charged interest? For example, medical?
I think if CA debt buy some small percentage of the debt, they are making huge profit anyway, but in addition to interest on late payments? Seems a bit about the top.
Thoughts?
I Clock collections ie search, and I can not figure out a specified pattern. Some went from 350 to 450, but some went 20-80 .

Best Answer: Not sure why there would be a max. You have the choice to accept it or not. Either the bank is attempting to take you for a ride or you are a really bad credit risk.

Reply:you would file where you are "damaged" at..thus your home state/Town/County.
BG

Reply:Where would I have to file? I am always confused about this. Debt incurred in CO(lorado), CA is in CO, but I am in CA(lifornia). I understand that you can serve ppl from out of state, but do file suits in their state, or mine, or where the debt originated?

Reply:you're golden then….FDCPA, FCRA, and BK violations
do you have an attorney? IF so, get ahold of him and ask him if he wants a new boat *grin*

Reply:Yep. IIB.
Then I get this letter, "pay now and we won't report this to CRA's, to avoid damage to your credit" but they've been reporting and updating for years.

Reply:exactly…no agreement, they can't charge interest…
but in your case, this was IIB?

Reply:Pryan – there is no agreement? It was included in BK. I (DH) received only one letter "Intent to report to Credit Bureaus" when this CA has been reporting and updating for 5 years now. No previous letters/bills/statements.. So if there is an agreement, we don't know of the terms. It's a medical collection, for 350, and they added "interest" of 107.98
I found this below: (FDCPA)
But now I guess I also have to find a Colorado specific law..
Interest on Debts (when no judgment exists)
Section 808(1) prohibits debt collectors from collecting any amount unless the amount is expressly authorized by the agreement creating the debt or is permitted by law. For purposes of this section, "amount" includes not only the debt, but also any incidental charges, such as collection [53 Fed. Reg. 50108] charges, interest, service charges, late fees, and bad check handling charges.
808(2) Legality of charges. A debt collector may attempt to collect a fee or charge in addition to the debt if either:
(a) the charge is expressly provided for in the contract creating the debt and the charge is not prohibited by state law, or
( the contract is silent but the charge is otherwise expressly permitted by state law.
Conversely, a debt collector may not collect an additional amount if either:
(a) state law expressly prohibits collection of the amount or
( the contract does not provide for collection of the amount and state law is silent.
808(3). If state law permits collection of reasonable fees, the reasonableness (and consequential legality) of these fees is determined by state law.
808(4). A debt collector may establish an "agreement" without a written contract. For example, he may collect a service charge on a dishonored check based on a posted sign on the merchant's premises allowing such a charge, if he can demonstrate that the consumer knew of the charge.

Reply:it's not specifically in writing (although FDCPA aludes to it)
but what does your agreement with the CA state the interest rate is?

Reply:The interest rate you found is based on allowable interest charges for judgements.

Reply:Sorry to revive a day old thread – does anyone know where I can find this in writing?
I will research myself, but if someone knows, I'd appreciate it!

Reply:Collection accounts can't accrue interest. The debt has been charged off for a specific amount which means it is closed and dead. the only way it could possibly accrue interest is if you signed something saying that it can gather nterest. If it's getitng interest tacked on than it's ILLEGAL. Several JDBs do this.. Asset, Sherman, Midland…..

Missing an item on your BK [bk] [debts]

admin — Sun, 02 Oct 2011 01:50:00 +0000

What happens if you accidently fail to list all your debts on the worksheet your attorney gives you. Is that debt still owed after the whole BK process.

Reply:This seems to be a controversy amongst people. I've been told if it was a no asset case and it is unsecured, then it is counted in. I would say if it was for a substancial amount, maybe talk to your attorney to possibly have it amended in. I forget really little ones here and there and those companies had no probs BK'ing it with their records. But again, mine were little amounts, I'm not sure how much your talking.

Reply:guy is correct. Depending on your district, many will consider the debt discharged. In others, you may have to reopen your bk and include the leftover.
Your attorney will know how your district handles these things.
Make every effort to get everyone included. Get vopies of your credit reports and see who's listed.

Reply:
Thanks aimee
So you filed about a year ago, are things really looking up? Or is the BK lingering over you like a dark cloud?? I am really nervous about filing, but I really have no other choice, I have a large family and the debt payments are killing us. I dont know how much more Ramen and Potatos we can eat. Kind of sucks!

Reply:
The Bk will hang over you like a very small cloud.
You may have some negative things happen- insurance rates go up, etc.
Borrowing money will become quite expensive for a couple years.
But that's about it.
As far as employment or renting a home, BK is actually better than having a report full of unpaid liabilities. Less risky.
If your insurance rates go up- time to go insurance shopping. There are companies that will give you a decent deal despite the BK.
Borrowing money- well…it's just going to be plain ole' expensive for a while.
(In other words- it's not that different than letting the acounts go late and charge off)
In fact, in many ways filing BK is better than carrying around a report full of unpaid debt… debt that'll never be repaid outside of garnishments or similar.
The biggest thing for many people revolves around guilt and attitude.
Don't fall into the trap of either one- If filing is in your families best interests- then do it and move on. That's why the laws exist.
Use it as an opportunity to start over- keep the future debts low, try to save for a rainy day- and sleep well, knowing you've put your family first.

Reply:Look up section 725 of the BK code.

Reply:
Some weeks are better than others. The only time I find I have the BK cloud overhead is when I want something out of my means. I know I can't have it cause we don't have CC's anymore and can't get approved for any (then again hubby has sworn them off forever). I figure with the year mark coming up in the summer, it might be better with approvals and such. Filing BK was the best thing for our family. Like you said with the food, ours was mac and cheese mixed with hamburger, lol. We haven't eaten that since we filed Money of course is still tight, but we are ok. Can actually put money away and I can pay my bills without worrying about where the money comes from. So I guess the BK cloud comes with a cost, but you determine that cost. Only you know what is best for your family at the time and ours was BK. I never thought I would be one that would file, but I'm glad I did.

Best way to pay off old debts? [debts] [fi]

admin — Fri, 16 Sep 2011 06:40:00 +0000

I must get rid of some bad accounts I. There are three of them, and the average amount is $ 1,200.
Should I pay them off slowly stared into a payment agreement? If so, how this will impact my credit card now?
Or I should try to settle the debt and PIF with a lower rate (I received a letter rules for up to 60% of the balance)? If I do that which will show the account on my credit card?
I have many questions, but I realize I need to separate my posts. So now, this is the first part of the questions.
Thanks!

Best Answer: I am a Mortgage broker and work with people in all possible situations with their credit.
I help people with fixing their credit, so I can get them into a loan.
In most cases you can and should do this on your own. It will save you allot of money and you can do it just as well if not better than someone else and in less time also.
All that is needed is for you to get a residential tri-merge credit report and look for the creditors that have collections or derogatory remarks against you. At the end of all tri-merge reports there is a place where the contact info for the particular creditor. call or write them for a settlement. in most cases they will settle with you for a reduced amount due, just be upfront and truthful with them and don't put up with any sh*t from them, Some can be real A$$holes (I've worked with many)
You can get a tri-merge credit report from any loan center for a small fee usually 10 to 15 bucks. it is a better report than those offered online and usually much cheaper than them as well
just make sure it has all three reporting agencies on it
Equifax, Transunion and Experian. You can e-mail me with questions if you need to. Info is always free.
Also I almost forgot. Most lenders will look at a consumer credit company the same way that they look at a Bankruptcy. I know it doesn't make much sence but they do also when you do establish credit you should never, NEVER pay off your credit card balances or loans all the way, keep them at about 20 to 30 percent of the maximum, for some reason when they compute the FICO score, if you pay off a line of credit, only the bad payment history stays, anything good disappears .
Everything we where taught in school about finance (as well as most everything else) is dead wrong.

Reply:Here is one Texas thread that makes for good reading—grab a cup of coffee, drink, etc. That thread is about 20 pages long now, but for you, worth every page you read.
http://{$MySite}/forums/index.php?showtopic=240327

Reply:"Be very, very, very cautious to PFD on these. I would not recommend it…."
Why is that?
Thanks!

Reply:Be very, very, very cautious to PFD on these. I would not recommend it….

Reply:Check out WhyChat's page on Statue of Limitations here:
http://whychat.5u.com/States/states.html

Reply:Above I stated DOLA, when I think it should be DOFD. You are in Texas–great. Texas has great laws for you. You need to read the Texas threads. In a rush–maybe someone will point you to them.

Reply:Have to go for a while but I'm in Texas. What is the time period?

Reply: Ok, that helps a little.
$855 Charged off – last activity 06/2007 —Looks like still with the OC. I am thinking a 623 first. Then maybe a PFD here. Just because of it being fairly recent.
$729 Collection account last activity 03/2006 —I would start with a DV with a limited Cease and Desist here since it is a CA. All else fails–try to get a PFD at a figure lower than 50% (start real low then negotiate higher–get it in writing before paying).
$232 Collection account last activity 09/2004 but is says Date opened Oct, 2008 (not sure why the dates are conflicting)–I would start with a DV and limited Cease and Desist here also since a CA. You need to be looking at the DOLA for SOL's and fall off dates. I don't think you have to worry much here messing with this one all you want—-I am thinking it is SOL. But, make sure, you could be a state with a long SOL. Then maybe PFD as above.
$2355 Account transferred or sold Charged off account 12/2006 Shows balance at $0 but Largest past balance at $2355 (this one has not been paid) —Probably is with the OC here but not sure. I am thinking a 623 first. Then maybe a PFD as above. Again, fairly recent.
Forgot couple of questions:
What state are you in?
Are these listed by the OC or the CA?
Have you disputed with the CRA's yet?
Have you DV'ed the CA's yet?
These are just off the top of my head and only my opinions. I suggest waiting for others to chime in to get more help and suggestions.
The CA's=validate
The OC's=verify
Also, if some of those above have already been paid off–it would change the attack a little–actually would leave you with little less bargaining power, but still can be accomplished.

Reply:what state are you in and why do you want to pay them? Are they with CAs or OCs?

Reply:How old are these TL's?
Are they listing as C/O's or late, etc.?
What is your state's SOL?
$855 Charged off – last activity 06/2007
$729 Collection account last activity 03/2006
$232 Collection account last activity 09/2004 but is says Date opened Oct, 2008 (not sure why the dates are conflicting)
$2355 Account transferred or sold Charged off account 12/2006 Shows balance at $0 but Largest past balance at $2355 (this one has not been paid)
Do not PIF—You need to try to PFD!
This is probably the most desired method if DVing and a few other things don't work. I think you can do way better than 60%.
What others things might I try?
I use "probably" in the 2 above responses. That is because I don't know enough and ymmv, etc.
Got ya! Thanks for the response.

Reply: I have a few bad accounts I need to get rid of. There are three of them and the average amount is $1,200.
How old are these TL's?
Are they listing as C/O's or late, etc.?
What is your state's SOL?
Should I slowly staring paying them off in a payment agreement? If so, how will this impact my credit now?
I would probably not do this–because it lengths reporting time and it could have impact on your credit–how?–various things could occur–no telling–lol.
Or should I try to settle the debt and PIF at a lower rate ( I did receive a letter for one to settle at 60% of the balance)? If I do this, what will the account show on my credit?
Do not PIF—You need to try to PFD!
This is probably the most desired method if DVing and a few other things don't work. I think you can do way better than 60%.
I have many questions but I realize I need to separate my posts. So for now, this is the first part of questions.
I use "probably" in the 2 above responses. That is because I don't know enough and ymmv, etc.
Thanks!