Legal Question in Credit and Debt Law in California

In July 2007 I first received this card from the Continental Finance Company, LLC. I contacted their agency and was told that before I could use this $300 limit, I would first have to pay $250 as an activation fee...whereby it would only allow me to actually spend only $50. He told me about the activation fee; but like any conman sales ripoff, he neglected to give me the details of late charges and incedental charges that were to come. I can recall walling away from the phone call feeling as though I only need pay $50 a month until my limit was paid down. I could only spend as much as I paid. He also made me feel that there would be only a $25 service charge for late pay. I knew my credit needed a facelift and I could not get a regular credit card, so I...inspite of my reluctance to pay such a high activation fee...activated the card. I simply assumed that the $250 was my opportunity cost for not have perfect credit for a honest legitimate card. I spent the $50 on the card and also made two payments in the amount of $50. When i recieved the 3rd bill it was $200 so called and was told that all these had applied to my account, it didn't make sense to me after him explaining it to me so i told him to close the account. It just started to feel like a rip off. Anyway yesterday i was contacted by the county control office stating that i was going to be summoned, here it is 3 years later and they are trying to sue me for $2700.00...i really don't get it! How did i physically give out more money then i recieved, but their sueing me! I need help!!! What can i do?

Asked on 6/22/10, 10:35 am

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

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It's not a "ripoff," it's that You Didn't Read The Friendly Contract.

Answered on 6/22/10, 3:10 pm

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