Re: question on settling or otherwise paying cc debt

Posted by Drew (24.59.27.46) on January 04, 2004 at 22:50:03:

In Reply to: question on settling or otherwise paying cc debt posted by catballou on January 04, 2004 at 17:41:44:

Cat, for the longest time I thought about settling in full when a bill comes due for us for husband. I am not sure anymore since the account has been sold to CA. You want to know what has me changing my mind about this. WhyChat had said that a contract that insists to a collection agency not to sell the account after a settlement in full is illegal restriction of trade and not enforceable. What that means that if you want to settle with them, you will have to pay in full their interests and legal fees and penalties plus the balance. If you don't pay it in full, no settlement letter will stop them from selling the remaining balance to another collection agency and having them report it on your credit report.

In dealing with the collection agencies, you have no way of ascertaining that the fees and the interests that they are charging you are legitimate. They don't account for their charges.

At least with the OC, the federal billing act applies to them, but what about collection agencies who may or may not bill.

I would go to www.ripoffreport.com and type in NCO, Camco, JBC, Sherman, and Asset Corporation and you will see lots of complaints about them, not sending anything in writing. My goodness, do they even bill the debtors. If not, how can a debtor know his payments are being correctly applied, that interest and penalty fees are being correctly computated.

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