This is rather long...but you really should read it all...
I too have had severe "angry" conversations with these people. Be very, very careful. If you default or are late on a payment, they will increase your interest to the max. 32.99%, then, each time you make a payment, they will lower your credit limit below the next month principal/interest amount and hit you with a $39.00 over limit fee as well. After 90 days they will close your account and expect you to continue paying off the exorbitant charges and late fees and interest. You will continue to fall behind until they dump your contract off to a bottom feeder collection agent. They will usually dump you onto EVAN'S LAW FIRM. This person does not collect but he allows other unscrupulous bottom feeders to use his name. They will file a local judgement suit using a corrupt judge and a local attorney to file against you. You can expect the judgement to be 2 to 3 times your current balance if you do not hire an attorney to represent you.
Now here's the rub. Even if you hire an attorney to fight this law suit abuse, the judge will receive his $250.00 filing fee and your attorney will get his/her $800.00 representative fee and the judge will dismiss or charge the suit based on your ability to pay, however, if the judge dismisses for lack of funds to pay, the collection agency will simply sell your contract to a partner firm for a few dollars and they will contact the local attorney who will file a suit again with the same judge. This can and does go on and on every 90 days for ever. Even after the statute of limitations has expired on the account, you will have to hire a local attorney to appear before the judge to have it dismissed at a cost of $800.00 every 90 days or until you pay off the debt or file for chapter 7 or 13 bankruptcy. Unfortunately, I was forced into Chapter 13 Bankruptcy by these bottom feeders.
I know! Bankruptcy is an admission of failure!! ”###!” I didn’t ask to be laid off and I didn’t ask to get behind, and I didn’t continue to use my credit cards after being laid off from work. All I asked was for some fair play and a level playing field. I lived in a dumpster and paid in every penny I earned for 8 years to NO AVAIL! BANKRUPTCY IS THE ONLY PROTECTION YOU CAN GET TO PROTECT YOURSELF FROM THE UNSCRUPULOUS LENDERS AND COLLECTORS. I originally owed $12, 000.00 on all my cards combined with an annual income of $67, 000.00 on 9/11/01 (terrorist day) and was LAID OFF ON 9/21/01. AFTER DESTROYING MY CREDIT CARDS AND NEVER CHARGING AGAIN, by the end of 8 years of trying to pay them off, being lied to and ripped off by collection agencies and receiving NO help anywhere, my total debt was $72, 000.00 of which I had paid $56, 000.00 over the 8 years in an attempt to satisfy my creditors. They promised to settle for smaller amounts if I paid today. I would pay them and they would keep the money and sell my contract to another associate who would then start the process all over again.
EXAMPLE: ORIGINAL DEBT: $2, 369.00. PAID OFF FOR ½ ELECTRONICALLY. $1173.00. BILLED NEXT MONTH BY DIFFERENT COLLECTION AGENCY $4, 569.00. AFTER 8 YEARS $9, 899.00. The lawyer on this particular suit was asking the judge for a judgement of $23, 869.18 for a $2369.00 original debt.
No one would help me. I complained to the Consumer Credit Council, U.S. Government, State Attorney Generals Office, Senators, Congressmen, and local attorneys, to no avail. I was always brushed off with the same response and attitude. "Well you dead beat! You should pay your bills and you won't have these problems!
I was left with NO OPTION but to file for Chapter 13 to protect myself and my family from these terrorists. My credit score actually increased by 79 points upon my filing Chapter 13. The bottom feeders will now get a total of $14.00 each over a 3 year period of time.
I can only hope that the credit card companies and the collection agencies "get hemorrhoids and live to be a thousand!"