Collection Agency just sent me a letter - what to do?

Submitted by saalanghae on Wed, 07/07/2010 - 17:43
Forums
Credit repair

The collection agency just sent me a leeter saying that I have $25K worth debt with Chase. I had this account for like 3 years before it went on dilinquent. However, it was never that much. I think last bill I got from them back in June 2009 was like $18,000.
The letterstating that if I don't notify office within 30 days of notice disputing the validity of the debt, the office will assume the debt is valid.
There are NO debt settlement proposed nor any payment options.
What should I do at this point? I really can't afford to pay at this point in time and I don't think that I can pay anytime soon.

Any comments will be appreciated!!

goodnatured

You should send the debt validation letter, make sure you send it certified mail and return receipt requested.

I am sure that there will be others who come along and offer advice, so please make sure that you check this entry often. Goodluck hope you get some good advice here and work through your issue. There are some smart folks here with some good experience and knowledge.

Thu, 07/08/2010 - 00:32 Permalink
vfsalinas05

I was in the similar situation, I had a credit card account and was good on it for a while then became delinquent on it...When I wanted to repair the damage I had done, my balance was a whole lot more than the last time I checked. I looked into it and they charge on all the late fees they possibly can, collection fees, crazy interest charges and many more..it doesn't seem fair for your balance to skyrocket out of the blue, yet that is how the credit card companys make their money...late payment fees, annual fees, overlimit fees...etc..Thats part of the reason Obama passed that credit card reform thing in which it helps to regulate their outrage fees...my guess is you opened and had this account before all this took effect...good luck and DV letters would be the best option...

Thu, 07/08/2010 - 02:47 Permalink
Barbara_Elena (not verified)

Try debt validation letter first and find out whether the collection agency owns the debt. If the agency can’t verify that you owe them the debt, they are not allowed to collect the debt from you or even contact you.

Thu, 07/08/2010 - 05:02 Permalink