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Established Member
willuw
Posts: 63
Registered: ‎02-06-2013

Advice needed on a collected debt and interest

Hi Everyone,

 

First post here, have been reading and learning a lot and I am dedicated to greatly improving my score now.

 

The question is this.  I had an $8,000 bank of american account show up on my credit report as past due that was not correct.  I disputed this with experian and they changed it to show that bank of america Closed and written off in full.

 

Now I have a new entry in my experian report from a collection agency for the same account - except now it is listed as current - and the balance is not $8,113 but over $15,000!!!!!

 

The details on it also say: This account is scheduled to continue on record until Jun 2014. This item was updated from our processing of your dispute in Jul 2012.

 

It looks like - since April or May of 012 they have beeen reporting this as current every couple of months (yet, the original account says closed and written off).  

 

What would you recommend I do about this since it is obviously now an even larger account! Can they almost double the collection account? Does not seem legal to me to almost double the amount in less then a year of taking the account.. 

 

Any advice would be greatly appreciated.

 

Thank you

Starting Score: 609 (Feb 1, 2013)
Current Score: 665 Current Debt: $2190 (23.43% Utilization)
Goal Score: 750

Updated: March 8, 2013
Moderator
Shogun
Posts: 12,890
Registered: ‎04-15-2011

Re: Advice needed on a collected debt and interest

Was the original debt yours?  Why did you dispute it?   The adding of fees and interest would have to do with what was in the OC's agreement with you and the laws of your state.  What is the SOL of your state?  Is it past the SOL?


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Established Member
willuw
Posts: 63
Registered: ‎02-06-2013

Re: Advice needed on a collected debt and interest

Hi,

I never had an 8000$ balance with bank of america - I have tried disputing it with them direct but it was useless and it got nowhere.

 

I disputed it - because it was not a valid balance.

 

The account was originally in Texas but I now live in Florida since 2007.  

 

If BOA wrote off the balance of $8000 - is it legal to almost double the balance by this debt collector?

 

The debt collector has not even contacted me ever and I have never received anything from either BOA or the collector. 

 

This has got to be really hurting my score since now the debt collector is reporting a $15,000 current balance every month (last report was Jan 2013) 


I don't know what to do...

Starting Score: 609 (Feb 1, 2013)
Current Score: 665 Current Debt: $2190 (23.43% Utilization)
Goal Score: 750

Updated: March 8, 2013
Moderator
Shogun
Posts: 12,890
Registered: ‎04-15-2011

Re: Advice needed on a collected debt and interest

If the origianal agreement with BOA allows it, and the laws of your state "some states have limits to interests and fees and some don't", then yes, they can.   What you need to do is research the laws of your state now, what are they in Florida?  I think Texas is 4 years across the board so you're good there.


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Moderator
Shogun
Posts: 12,890
Registered: ‎04-15-2011

Re: Advice needed on a collected debt and interest

Looks like Florida is 4 years open ended and 5 years written.


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Established Member
willuw
Posts: 63
Registered: ‎02-06-2013

Re: Advice needed on a collected debt and interest

But how is this calculated? On experience it says BOA wrote off the account in jan 2012. TU and EQ show BOA of writing it off in 2007-2008.

 

The all seem to agree that the CA took control January 2012.  Which dates does it go by? BOA doesn't seem to know anything and is a mess.. 

 

 

 

 

Starting Score: 609 (Feb 1, 2013)
Current Score: 665 Current Debt: $2190 (23.43% Utilization)
Goal Score: 750

Updated: March 8, 2013
Moderator
Shogun
Posts: 12,890
Registered: ‎04-15-2011

Re: Advice needed on a collected debt and interest


willuw wrote:

But how is this calculated? On experience it says BOA wrote off the account in jan 2012. TU and EQ show BOA of writing it off in 2007-2008.

 

The all seem to agree that the CA took control January 2012.  Which dates does it go by? BOA doesn't seem to know anything and is a mess.

 

 

 

 


That is no surprise.  Who is the CA that is jacking the amount up so much?


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Established Member
willuw
Posts: 63
Registered: ‎02-06-2013

Re: Advice needed on a collected debt and interest

Calvary Portfolio Service is the CA - and I have never heard one word from them.

 

It just doesn't seem write that they can almost double the amount that was written off.  If my calculation is correct - that averages out to adding over $600/mo in fees/interest since they obtained the account....

 

The worst part is they are reporting it as current so it has got to be really hurting my score

Starting Score: 609 (Feb 1, 2013)
Current Score: 665 Current Debt: $2190 (23.43% Utilization)
Goal Score: 750

Updated: March 8, 2013
Established Member
willuw
Posts: 63
Registered: ‎02-06-2013

Re: Advice needed on a collected debt and interest

Correct me if I am wrong, but I see every state has maximum interest they can charge, looks like collection agency is in Arizoa - could not find a rate for them.


I also read that the card member agreement trumps state - is this the case? I looked online and it seemed the max APR in BOA agreement is 29.99% APR..  

 

If this is the case, and if my math is correct....

 

The CA has not even had the account a year - but even if they did the itnerest would only add up to about $10K..Nowhere near the claimed 15k...

Starting Score: 609 (Feb 1, 2013)
Current Score: 665 Current Debt: $2190 (23.43% Utilization)
Goal Score: 750

Updated: March 8, 2013
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: Advice needed on a collected debt and interest

It depends on the state how it is calculated.

 

If the CA just bought or was assigned the debt in 2012, almost double is a lot of money in interest.  I wouldn't even know if they could legally add back interest to a debt.


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