Expert: Creditwrench - 4/26/2010

Question
Here is  the situation, back in 2008 I was on a trip oversees, and I was double charged for my return tickets. when I returned to the US, I called the Credit card company,  and told them about it, so they canceled my CC, and said they will send me a new one, and a paperwork to dill to file my claim. I never received anything form them, I also moved from my address, and after about 6-8 month, I received few phone calls form a collection agency, and it turned to be that citi had turned the account to them, and they were collection about four thousand $ for the tickets, I explained to the agent the situation, and he said it is better to pay off the debt to save my credit history, when I said  I don't see whay I have to pay, he got me on settling to pay 3000$, putting 1000 down, and making payments of 250 a month to save my history since nothing else citi will do to settle this or wave the fees, I became unemployed, so I called to change the monthly payments after making 3 or 4 original agreed upon 250, and cut it in half.  these payment shoudl off ended by next month. Today I tried to call to see where I stand with payment, they told me I still owe 2400 $ in interest, as when I called to change the payment plan it changed things, and interest had increase, and all kind of things that I couldn't understand. Not to mention  the agent hang up on me when I asked her to cancel collection form  my bank account till I take this to court, and I had to call again, and asked to speak with a manger, the guy who  answered me he said he can help, and there is no manager to talk to, and when I tried to explain to him the whole story, he said it is a  common sense that these changes will happen when I change the arrangement, and nothing will be done, and I still owe these 2400 $. I confirmed that the account with them is canceled, and no money to be taken out of my account till I resolve this in court.
Of course I found out now that my credit history is missed up, anda almost all my cards had been canceled by the issuers. I used to have 750 score.
I have 3 Questions:   
1- Some one told me I can sue citi, and get all my money refunded, as this payment was not true to start with, is that true, if yes would you help, and how much is your charge.
2- if the above is not true, what to do about the money they asking for, shall I not pay it, would they  go to court for it.
3- Anything I can do to correct my history,  especially that I am looking for jobs, and history is important in my  career.

By the way I am in NJ, and the collection agency is in texas "united recovery system.

Thank you for your time and help

Answer
As Achmed the terrible terrorist has said many times, "A telephone in the hands of a debt collector is like a crowbar. It can be used to pry open the mouths of debtors so they can stick their foot in it. " (LOL)............You did just that when you paid them. The answer to your first question is no. You will not be able to sue Cit because it is the debt collector who is doing you wrong, not citi. The answer to question #2 is that I recommend you shut down your bank account and start a new one. Then no, pay them nothing and let them take you to court.. If you start learning how to deal with these people and their court cases it will be to your great advantage if and when they do sue you.
The answer to question #3 is can you do things to correct your credit history? Yes, you can but you may have to file some lawsuits to get the job done.

And you asked how much I charge to teach people how to do those things. I don't discuss such things on the internet. I have to know quite a bit more before I can tell whether or not I can help you. You will have to call me so we can determine those things.
(405) 237-2174