What should I do?

Hi there - I have pulled my credit reports, all 3, and on them is a old capital one card debt, over 6  years old. My ex husband & I verbally agreed who would pay what when we divorced. Unfortunately, he did not pay this one. Never verbally to anything, especially an ex husband!! Anyway, the max on this card was only $300 and the debt is now over $2000! The card was cancelled when we divorced, so I know he didn't run it up, he couldn't anyway, the max was only $300. How should I handle this? SHould I send a debit validation letter? The $300 part is ours, but geez - who added on the other $1700!! Do I have to pay that? Please help! This is on all 3 of my credit reports!  Thanks.

You can start by asking for a validation of debt.  That MIGHT help, but won't remove the $1700.  That's interest and fees they tack on when they don't collect.  If you make them an offer of settlement, you might be lucky, but be cautious, as creditors record everything and once you acknowledge a debt....  well I'm sure you can guess.  Check to see what the Statute of Limitations is for your state, you might be close in time, at which point you could dispute the transaction and possibly have it removed.

I'm guessing it's probably - late payment fees and interest.  Especially if this an old debt.  I would doubt that they will help you- but it's worth a try.  Maybe they will knock some of the fees and such off.

For $300- I would have made sure it was paid.

You may be able to reduce the amount of debt if you explain that you did not know you actually had the debt in the first place.

The 1700 dollars will unfortunately be interest and fees.

Now if they can not validate it then they have to take it off. If it is in writing that your ex husband pay this you may talk to him or you may have to take him to court which you can file yourself I think.

Since the balance is probably fees they ahve added, they might let you settle for less than the full balance.

The only problem with a settlement is that you have to make a lump sum payment for the amount of the settlement!

They probably kept raising the interest rate because the monthly payments were not coming in.  I don`t know what the max rate is, but if it was 24% it will double every 3 years (divide 72 by interest rate tells you how many years it will take to double).  $300 will become $600 in 3 years, in 3 more years it becomes $1200, so by time they add late payment fees each month, it could soon become $2000.  In my opinion, most if not all credit card companys are thieves.

The hard lesson here is treat credit cards as you would a rattle snake!  Good Luck!

        Sometimes right

 

 

 

   

What a huge amount of money....look other people rich because of our money.So annoying...

I believe the statute of limitations (SOL) to legally seek validation on that debt is WAY up. It is, I believe, 30 days after the first collection notice from a collection agency (CA) is sent to you/your Ex. You can try anyway, but they are not compelled by law to acquiesce to your request.

After 7 years of the last payment received, the credit bureaus (CBRs) are no longer allowed to report the debt, nor is a CA allowed to seek judgement against you in court for the debt.

This does not mean the debt is gone; but you can't be sued and you can stop the CA from harrassing you about the debt by sending them a cease and desist letter.  

The $1,700 is, I'm sure, late fees and interest for the past 6 or so years, and is written (in fine print) somewhere in the contract you and/or your Ex signed when appling for the CC. They are legally allowed to tack those on to the primary balance for as long as you don't pay.

Because you and your Ex were married at the time, you are both legally responsible for this debt. I'm sure you learned the lesson already, but ALWAYS get everything in writting when it comes to finances, no matter with whom or the circumstances. You have got to protect yourself.

Contact the CA or the original CC company and explain the situation and see if they are willing to take a settlement for less. Since the SOL is close to being up, they might be willing to negotiate.