Legal Question in Credit and Debt Law in New York

Credit card debt sold to new company

I had a credit card default in 05, made arrangements with collection to make monthly payments, did that for 3 years, auto deduct from my account. then they stopped deducting.. got a letter from a new company that had bought the account. They now want the original amount owed plus interest or they will sue. my balance owed to old company verified by them was 12000. The new company wants 27000 and climbing. What do I do? I've paid over 3000, new company says too bad that agreement was with old company. How can they just sell my account when we had an arrangement (not in writing, but they auto deduct and sent letter every month varifying payment due). I sent letter explaining this, they called talked round and round about where I could get the money to pay this and got nasty, now they sent a letter, saying I'm ignoring them.


Asked on 6/13/08, 1:08 pm

1 Answer from Attorneys
Frank Loscalzo Law Office of Frank Loscalzo

Re: Credit card debt sold to new company

Just to sum up:

1) You had a $12,000 debt which you defaulted on in 2005, approximately 3 years ago. 2) You made arrangements to pay the original creditor in 2005, through a collection agency.

3) You do this for 3 years and pay an estimated $3,000. 4) This year the account is sold (presumably to a debt buyer). 5) The debt buyer now claims you owe $27,000.

Response:

Yes, they can sell the debt even if you are making payments.

However, if they do not account for those payments, and the $27,000 is an amount they are not entitled to, then you have an FDCPA violation.

If you have more specific questions or would like some assistance, call or email me.

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Answered on 6/13/08, 6:43 pm


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