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Michigan Credit & Debt
Where To Go For Help
Where To Go For Help
The Federal Trade
Commission Nearest You
Federal Trade Commission (Online Complaint Form)
Also Contact Your State's
Consumer Protection Agency. This could be your
State's
Attorney General or Your
Secretary of State's Office. You may also contact your
State
or City's Legal Aid Department.
Banks & Credit
Unions (Consumer-SOS)
If your credit card issue is a bank or credit union, find out who regulates
them.
Find Your Local Newspaper, Magazine, Radio & TV Stations
Give them a little bad press and you're bargaining power increases
tremendously. Select your state, and then click on your county or city for the
proper media to report to. (DC Not Included).
Find The AARP In
Your State
The AARP offers legal advocacy for seniors and may also have state specific
consumer brochures which are available to everyone.
National Help Orgs For A Variety Of Consumer Problems
The Elderly, Environment, Families, Fraud, Health & Safety, Insurance The
Handicapped, Medical Problems, Telemarketing and more.
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Time Limit
On Collecting A Debt and the Maximum Amount You Can Be Charged
Mr. Smith,
From what I
understand,
You have a credit card bill that goes back eleven years. Your original bill was
for $600.00 and now a collection agency wants 1800.00 from you. You've asked me if there's a limit to how long they can
collect on past due bills and if there's a legal limit on what they can charge
you.
I see three issues here that may relate to your
situation. However, I make no promises I'm right. I suggest you call your
local Federal Trade Commission or Attorney General's Consumer Protection
Division to confirm anything I tell you.
ISSUE#1
Can They Charge Me So Much Over the Original
Amount of The Bill? My original debt was $600 and they're now asking me for
$1800!
The fact is that they can charge anything they want unless they're in
violation of the applicable State and Federal Usury Laws (Laws On Charging
Excessive Interest Rates). The real question is whether or not you're
required to pay it at all. See Issue #3
ISSUE#2
How long can they keep this debt on my credit report?
I believe the answer is only 7 years from the date you stopped making
any payments. It could also be 7 years from the date you first became
delinquent, even if you continued making payments. Check your credit report
and complain to the proper authorities below if it's still being reported past
the 7 year date.
ISSUE #3
Even If they can't keep reporting it, can they
still sue me? This is where the state Statute of Limitations comes
in. SOL's vary from state to state and are also based on the type of debt you
have.
Thus, it's important to know which state's SOL applies
and whether it's a court judgment, credit card debt, or if you signed a
promissory note, etc. Here's what I found at the link below. Please read what
it says very carefully and be sure to look at the STATE SOL Chart. It is
possible the SOL Chart is outdated and I cannot vouch for the accuracy of any
link listed here. Note: Most credit card debts are considered "OPEN ENDED
ACCOUNTS, which is the last column on the chart.
What state should I use in figuring out the Statute of
Limitations?
According to Ron Opher, of www.ron4law.com: the
FDCPA applies when a 3rd party debt collector is involved. Thus, the only
relevant jurisdictions are where the consumer signed the loan application and
where the consumer currently lives (bank location is irrelevant). If those
states are different, I believe the creditor has the choice of where to sue
and can select from the state with the longer SOL. There may also be an argument
that the contract was signed "under seal" which might lead to a longer Statute
of Limitations than an ordinary contract.
Note: The FDCPA
(Federal Debt Collections Practice Act) applies only to third parties who
collect debts for others. This law governs some law firms, debt collectors and
collection agencies. It does not govern the actions of the original creditor
such as the bank or store who you directly owed the money to.
Normally credit cards have agreements which state that in the
event of a dispute, the laws of State ________ will apply. While the contract
may or may not be binding as to which SOL applies, play it safe. Look for the
credit laws and SOL in the state listed in your original agreement or loan
application.,
Other Credit Laws That May Apply
Who To Contact For Help
Let Me Know If This Helps or You Have Other Questions.
Consumer-SOS.