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Creditors and Bankruptcy/Credit card overlimit charges

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Expert: Regan Shinski - 11/27/2010


Question
Hi,
I maxed out a CC in 2005 ($600 limit) and at the time couldn't afford the late fee and minimum payment each month (did try to contact once to hopefully freeze account until I could catch up) and I eventually stopped paying on it.
I'm in a better financial situation(2010)now and would like to make good on a past due debt but the latest CC invoice I received has a balance due of $2024.50.  Can the CC company keep adding fees?

Answer
Hi Rory:

This depends on the terms of the credit agreement and what stage the collection of the account is at.  For example, if they have hired an attorney or started court action, those are probably common charges.  If it's just interest and late fees, it seems excessive at first glance but depends on the terms of your account.  It's impossible for me to say without knowing that information.

If you think you want to pay - I would be vary cautious of this - you should contact them to get a detailed statement of how the total was arrived at.  You also may be able to settle for much less.  

A word of caution on doing this, you may "wake the sleeping giant" and make them a very aggressive collector - even to the point of suing you if you don't pay quick enough.  You are probably about two years from it falling of your credit reports due to age and is a good candidate for deletion through credit repair.  Go to www.ficofighter.com for more information.

Good luck, I hope this helps,
Regan

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Creditors and Bankruptcy

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Regan Shinski

Expertise

I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit reporting.

Experience

Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports. Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry. I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA). I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage. In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.

Education/Credentials
BA - University of Minnesota

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(private)

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