Charged Off CC and now Billing 2 years later

[treehugger1]

In early 2007, I had 2 Cap1 cc's charge-off. By the way, last payment on these accounts was prior to this. The last credit card agreement stated that the laws of Virginia would apply to the CC agreement, including any default. Virginia has a 3 year SOL on such accounts. I posted a while back that there are consumer attorneys in Oregon who suggest that in such cases as Cap1, the virginia SOL comes before the Oregon SOL (6 years.)

Three months ago, I began to get new bills for two charged-off accounts. I also have documentation stating that these accounts were closed by C1 back in late 2006/early 2007. Why the new bills? The bills contain no threats. They do not ask for payment in full, etc.

Curious I got online at the FTC site and found the most recent C1 agreements state that the SOl will be the Virginia Statutes or the state in which the consumer resides, whichever is longer.

I'm wondering if C1 is trying to suggest my accounts are active and were never closed in order to get around the original 3 year SOL. In my case, the 3 year SOL based on Virginia law expired months ago.

Any thoughts? Anyone else getting regular CC account statements a year or so after the OC has closed and charged off the account?

[jacko]

Crap One sued me just over a year after I stopped paying. I wonder if Citi and Chase have similar CC agreement. But eventually will file with in 2 years once I file previous years tax returns. I have decided not wait out the SOL due to two judgments already that I can discharge. Want to put it behind me and get the next 8 year count down to commence. If I ever file again will be due to medical debt. The only debt that I would have left is the 30k in student loans. The US Dept of Educ is easy to deal with.

[frogger]

Three months ago, I began to get new bills for two charged-off accounts. I also have documentation stating that these accounts were closed by C1 back in late 2006/early 2007. Why the new bills? The bills contain no threats. They do not ask for payment in full, etc.

As you know, there are statutes as to whether you can be legally pursued or not, time limits on credit reporting, etc.

After the stats run out, they can continue to bill you forever, but their collection options are reduced to the "friendly" bills that you are getting.

This is probably just another collection tactic. You might just happen to pay them.

[treehugger1]

Interesting. Perhaps this is the case. They stopped sending these accounts to CA's and Collection attorneys at least a year ago.

[GoingDown]

That's very interesting about CrapOne sending you regular billing statements. My guess is they had some computer mess up (whether unintentional or on purpose) and they are now assuming your account has gone back to the period before charge off. I've never had a credit card send me the ordinary regular billing statements after charge off. Keep all your documents about this account in a safe place. You may need them later.

I think the 3 year Virginia SOL applies to them. If I was in your situation, I would fight them in court if they sued me past their 3 year SOL. If they can sue me in Virginia, then the Virginia SOL should apply to them.

CrapOne hasn't sent me anything in a long time. The last things I got from them were credit card applications with my name, and the current account balance already printed on the application, asking me to come back as customer of theirs, open a new account and transfer the old balance onto a new credit card account. Obviously, so they could sue me again. Of course, I did not take them up on their offer.

[treehugger1]

Maybe I am putting the cart before the horse. This is now the 4th or 5th month that I have received these "statements." They even say "statement." LOL. It is very strange. It requests a minimum payment of "total" amount owing. It includes interest at the rate of 24.99% apr. There is nothing on the bill to suggest the amount is overdue or the account is closed. It looks just like any other statement from a C1 credit card, except the minimum payment is the amount owed. Posters on another forum believe C1 is preparing to sue me. Maybe I just need to sit back and wait to see what transpires.

I'll report any updates here, and if others have similar experiences, please share them.

Thanks.

[df04527]

I would sit back, not respond, and wait to see what happens. They are just using scare tactics. Blow them off.

[chicagoannie]

Interesting. Is your minimum payment and total balance due increasing each month?

[GoingDown]

When you think about it, it is very strange, because usually immediately after charge off, credit card companies stop sending the regular statements in the mail.

In fact, out of all of my many defaulted and charged off credit cards, none of them sent me regular statements after charge off.

I wonder if maybe it was some computer glitch?

[frogger]

I wonder if maybe it was some computer glitch?

Doubtful. I still believe that it a revenue generating device.

People change. Circumstances change. Perhaps those that were broke 5 years ago now have money? Perhaps a drug use got clean and sober?

When situations change, the way we react to them can also change. There is nothing wrong with them sending a round of statements to see if you would pay.

Bulk mail is cheap collections tool.......

[GoingDown]

I can see where it might get someone to send in a payment, since it is a billing statement. But it does seem strange.

I might add that another thing I noticed is that of the very few original creditors who kept my debts and never sold them to junk debt buyers, they stopped charging interest (or any fees) at the point of charge off.

The junk debt buyers, on the other hand, are still charging the penalty interest rate, years after charge off. Every time I check my credit reports I notice the amounts for the junk debt buyers has increased substantially. But the original creditors seem to be frozen in time since the charge off.

That's the experience I have had anyways.

[df04527]

Some big companies don't sell their charged off debt's to JDB's/Collectors. They maintain them "in-house" -- one of the main reasons, in my opinion, is so they can skirt right around the FDCPA.

:/

[GoingDown]

Some big companies don't sell their charged off debt's to JDB's/Collectors. They maintain them "in-house" -- one of the main reasons, in my opinion, is so they can skirt right around the FDCPA.

:/

Well, it's interesting about the ones who never sold off the debts. They sent the debt to several different collection agencies, and each one received a Cease and Desist letter and a "Judgment Proof" letter from me. Then the final stop was at a local debt collector attorney in Phoenix, who did a hard pull on my credit reports, called my former employers inquiring about me, and even contacted my landlord about me. And then called me several times. I then followed up with a cease and desist letter and a "judgment proof" letter, and a letter about me filing chapter 7 bankruptcy in the near future, and wiping out any judgments against me.

I looked up the home address of the attorney using the county property tax assessor's website and sent the letters plus recordings of his phone calls directly to his home address. He never called me again, never filed a lawsuit against me, and I haven't heard from those original creditors lately, except one sent me a 1099-C for the entire debt plus interest and late fees.

I think getting my letters at his home address freaked him out and really got his attention, and he must have responded to the creditor that I was not worth pursuing at that point.

If the letters had gone to his business address only, I doubt that it would have made such an impression on him.

[frogger]

I looked up the home address of the attorney using the county property tax assessor's website and sent the letters plus recordings of his phone calls directly to his home address.

I like it!

[bcohen]

I actually got regular billing statements for both of my credit cards this year in September, October, and November, despite the fact that I haven't paid on these accounts since March of 2009, and they both charged off in November of 2009. Both statements gave the total balance owed as the "minimum payment due". One of the credit cards is a Discover, which has not increased in balance since the charge-off date more than a year ago. The other is a Citibank Mastercard, which continues to add interest at 29.9% but no late fees or penalties since the charge-off date. Amazingly, the balance has gone up from about $11,500 when I quit paying to approximately $26,000 today, according to my credit reports. The debts have been passed from various collection agencies and law firms, but so far no lawsuits have been filed. The SOL here in Arizona is 3 years, so hopefully I will squeak through that!