Expert: Creditwrench - 6/3/2008

Question
I sent a letter to Capital One (credit card) to dispute the amount that they say I owe.  I, like alot of people, had to choose what bills to pay and what not to pay to meet our basic needs.  I haven't paid them in about 7 months. Right now they are using their "in house collections" on me. When they sent me a letter stating what I owed, I disputed it with a response letter.  I stated that I wanted them to provide original application, any signatures associated with the account, any bills associated with the account and so forth.  Today in the mail I receive this response:  and I quote "Because you applied for your account by phone or on the Internet, we do not have a paper copy of you application on file to send you. We've enclosed a copy of your Customer Agreement, as well as your last 3 monthly statements. Please note that any additional request for complimentary copies of documentation regarding your account may not be honored. Capital One has a valid contract for the amount you owe." HuH? I know I didn't apply by phone or Internet, so I don't know where that came from, and the monthly statements they sent were from fall of '07. My question is, What kind of response do I send or should send?  Should I acknowledge receiving their response and counter their claims with another letter or just wait for them to come at me again? I know this doesn't matter to the Banks...but I added up all the money that I have spent using the card, then went back and added up all my payments and payoffs for the same time and penny for penny I paid every cent back plus an additional 8000.00 (interest), I state this because I think if people would do the same, they could actually see how much money they have actually put back into the Credit Card companies hand. Its astonishing. Any advice to my questions would greatly be appreciated.  Thank You!!

Answer
The problem is that credit cards are not a good thing for the average man. They may seem a necessity because they offer a fairly easy way to obtain credit one needs when they have to buy a vehicle or a home but they are also a deadly trap if one does not use them with extreme caution.

The average person really cannot afford credit cards because they are so expensive. But all of that doesn't resolve your problem which is that if you cannot pay them then they will end up filing a lawsuit against you and ruining your credit.

If you can't pay them off then about all you can do is wait for the inevitable lawsuit. In the meantime you should be preparing for that time by learning what lawyers and debt collectors can and cannot do and trap them in their violations then sue them in federal court.

Bill Bauer
405-684-9297
405-227-9423

The Creditwrench conference calls will start this coming Friday evening at 7 P.M. Central time. It is free and open to the public. There is no cost or obligation other than what it may cost you for the phone call itself. You can join in and ask questions or just listen or whatever you want to do.

Dial-in Number: (712) 432-1601
Access code: 508548#

You might also want to visit our message forum at http://consumers.creditwrench.com to get answers to questions you need answered before next Friday night.

If you live within driving distance of Oklahoma City you can also come to our monthly meeting of the Oklahoma City Chapter of Jurisdictionary meetings. They are held on the 2nd Thursday of each month at Coit's Root Beer Stand which is located on the corner of SW 24th & Western Ave in Oklahoma City. The meetings start promptly at 7:00 P.M. and last for 2 hours. Attendees usually arrive about half an hour early so they can enjoy a good meal at Coit's Root Beer Stand. The meetings are free and open to the public and we can discuss your problems as well if you like.