About two years ago, I cosigned on a agreement for my mother who needed dental work. She has made all payments, although after an account review, they have marked her late 9 out of the last 12 months, because she's paid her account online, the day it was due, *after* 5:00 east coast time.
I paid a lump sum of 2k about a year ago, to prevent the promotional apr from spiking. I was told that the remaining balance needed to be paid off by this September to prevent a hike in the interest rate.
I found out recently that they jacked up her rate to 29.9 % back in April, and retro'd it back to the original signup date. So now, in addition to the $3500 principal, they've added another $2,500 in interest and late fees.
I don't mind paying off the balance in full, of the principal amount, but feel absolutely violated to pay the $2,500 in interest and fee's, considering she always made the payments same day, and I was lied to about when the balance needs to be paid in full by.
I was told that they don't settle, and that I would have to wait until it was sent to collections. I have great credit (760) and don't want to see it tank, but also don't want to be extorted for $2,500.
Any suggestions? I've requested to see a copy of the cosigner letter.
I know if I am able to settle, I need them to mark it as 'paid in full' or 'paid as agreed.
Help needed in Oregon...
Hi skycriesmary,
I understand you are going through a difficult situation, but do not lose hope. Whatever the company is doing with you is not legal. Under these circumstances, I would suggest you to file a complaint against the company with the FTC and the State Attorney General. The company has already broken the FDCPA. When you are filing a complaint against Credit Care, remember to provide the latest payment receipt that you have got. You can call the FTC at (877) 382-4357.
Thanks...what are the next steps?
If I make a complaint, will that affect my account at all? Does the FTC and SAG have any real power over this company, or am going to get nailed for not reading the fine print, no matter what I was verbally told?
Is it true that they don't settle? I find that hard to believe...
You need to do the due deligence but some times they try to catch people by printing this in fine
As Justin suggested, write the letter to FT and AG
That should not have impact on yoru account
Hi Erik,
If you are talking about a negative effect, then that is not possible. You are filing a complaint because whatever the company is doing is not right. Do not be afraid and do not let the company take advantage of you when the law can protect you. The Federal Trade Commission (FTC) is empowered to protect you from the illegal practices by the various creditors and debt collecting bodies. FTC can definitely take legal action to protect you from the extortion.
As far as the SAG is concerned, it is a legal authority in matters of justice. A state attorney general is the head of law enforcement body. Hence, he/she can take legal action to establish justice by enforcing law. Since, attorney general is chosen through election, he/she has the responsibility to protect public interest. Hence, a state attorney general can definitely help you regarding this matter.
I believe going the route Justin has mentioned is very very important. I would not let this company go one step further. The longer you let them continue to practice this way the worse they will become and it will make it harder and harder to deal with them. Get the Atty general into the picture early. I believe even that one phone call may straighten out your situation.
They offered me a settlement if full...
How bad is that on my credit score?
Settlement if full..
I just got off the phone with one of their reps, who after talking with their 'supervisor' offered me a settlement for $4,200. They said they could not delete the account, or mark it paid in full. They said it would be notated on the account as 'Settled in Full'. I'm wondering how big of mark this will be on my credit, or if I should fight it. The account has never been past 30 days late.
Having issues with entering in the body to this field...
Is 'settled in full' much better than leaving the balance, and letting it go to collections? I do not want to let it go to collections, but if the 'Settled in Full' is going to be nearly as bad on my credit, I'll let it go to, and pursue legal help.
it is always etter to pay it off wiht out lettign it go to colelction
The credit report is already impacted by this, but may be it will help a little if you can pay it off
Is there a difference?
Is there a difference between having it marked settled in full, if it never went to collections and not paying, and having it go to collections?
From what I understand, both are nearly as detrimental on your credit report.
Thats correct both are bad for yoru credit report
Is not paying it much worse?
Than having it marked 'settled in full' by them, i.e. it never went to collections?
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Qo6nBW Im thankful for the post. Will read on...