Legal Question in Credit and Debt Law in New York

credit card

I had a Citibank Platinum Select c/c a/c & had an o/s balance of $10080/- Since i lost my job back in 2000 I couldnt keep up with the payments & they sent it to collection agency. When i got a job I requested them for a settlement for 6000/- with an initial payment of $3000/- & the rest in monthly installments. But they never replied for it & after almost 2 years i received a letter from some attorneys office saying that they bought my a/c from Citibank & i have to either pay the c/c balance or appear in court. The balance this time is $15245/- Since I wanted to settle this a/c I called them & am currently paying $200/month. & they are charging exorbitant interest on o/s balance. If I continue with this payment I am never gonna finish paying this a/c. I would like to know if its legal for Citibank to sell my a/c to others & they can charge me whatever rates they want? Please help.

thank you


Asked on 9/05/04, 2:10 pm

1 Answer from Attorneys
Guy Lewit Guy Mitchell Lewit, Esq.

Re: credit card

They CAN sell your account and no they cannot charge whatever rates they want...your agreement with Citibank controls...unfortunately, when you are in default, they can probably hit you up for close to 20% in interest charges and collection/attorney fees...DON'T PAY...GO TO COURT...the judges usually limit some of the fees and charges...OR FILE FOR BANKRUPCY...its a low cost solution.

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Answered on 9/06/04, 5:26 pm


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