Legal Question in Credit and Debt Law in New York

Hi I have one question so I am just going to go ahead and ask. In 2008 I was unemployment and Capitol sent me a credit card, being young at the moment I accepted it and spent all the money on it. My credit limit was exactly $300. Anyways I used approximately $290 but I did not mak any payments on it. 3 years later I received letters from debt collectors saying I have to $1002 anyways I wanted to know if legal claim can be brought against me for $712 that the bank is trying to squeeze out of me If I didn't even use that much and if they are allowed to charge me so much interest, and let me just add that I told them that I am willing to settle only the $290 that I used but they said no. What are my options in this situation and if it every goes to court would the judge rule in my favor? Which is to not pay the interest fees and pay what I spent.


Asked on 5/23/11, 5:30 pm

1 Answer from Attorneys
Gelena Alexandrovskaya Kaplan & Alexandrovskaya, LLC

Your best bet is to settle with the credit card, most of them will accept installment payments. The amount demanded includes years worth of interest, so it would be reasonable for a judge to rule against you for the entire amount.

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Answered on 5/26/11, 5:45 pm


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