Expert: Creditwrench - 8/29/2009

Question
Hello Creditwrench. Thanks in advance for taking the time to answer my question. If there's any way you can move quickly to answer this, it would be much appreciated as I have a limited time to respond to the complaint I received. I live in Ohio in case you need to look up any state laws.

I am being sued for an old credit card debt that occurred in 2006. I was a very not-so-good person back then and was using drugs. I have been clean for almost 3 years now. I made some really stupid decisions and I understand they have consequences, and as such I am not disputing the debt itself. It is mine. My question focuses more around my present circumstances and the interest they are suing for.

I received the summons two days ago. The plaintiff is named as "Capital One Bank USA N.A c/o Levy & Associates, LLC" but they are also identified on the summons as "Pope and Levy Co., LPA". Why the difference?

Right now, I am a full time student with no income or assets. I was injured in April and had surgery in may and have not worked since. I am having another surgery in December and have no timetable on a recovery time as the specifics of the surgery have not been discussed. I want to pay this off and was planning on picking up a second job over the summer to do just that, along with some other debts I owe. My injury put a stop to that. I contacted them and informed them of my situation and spoke with a legal assistant who only offered me a settlement amount that I cannot afford.

Paragraph #2 of the complaint states that I owe Capital One $1447.78, consisting of $797.64 of a charge off amount and $650.14 for interest, charges and payments. What charges and payments? Why so much interest?

They are demanding I repay the amount I owe "plus interest at 25% from May 29th, 2009, costs expended herein and all other proper relief." 25% interest strikes me as usury. Also, when I called after I received the summons as mentioned above, I was told over the phone that I owed $1600. Why the difference?

Something about this whole situatuion smells a little fishy. Like I said, the debt is valid and I fully intend to repay it, but there are a few inconsistencies that give me pause.

Thanks for any help you can provide.

Answer
I may be able to help you more than you might imagine. But first you say you are a student. What university and what are you studying? I can't tell you why the difference in amounts. That will have to be forced out of them through the discovery process. If you are willing to answer the above questions and probably a few more I just might be willing to help you for free. Email me and we will go from there.