[QM07]

Recently, I discovered the wonder of dispute letters and also the fact that most collection agencies can't provide the necessary documents that constitute debt validation within the 30 days time period as outlined in the FDCPA in order to validate such a debt.

I recently hit some hard financial times (due to business) and received quite a few collection letters for various things including an overdrawn checking account that was closed, two merchant accounts, and a cell phone bill.

None of these companies could validate the debt and have disappeared after my letter was sent. I read in another thread someone had a Capital One card and received a lawsuit for Capital One but the balance was like $13k.

I have been flirting with the idea of defaulting 90 days on my BoA credit card. (The checking account I overdrew was also BoA). The balance on the card is roughly between $3,300-and $3,500. I really can't afford to pay this and making the minimum payments are a waste of money. I'd rather take the temporary credit score hit of a 90-day delinquency and a closed credit card account (as I'm sure most of you know, closing a credit card willfully or due to delinquency isn't differentiated on credit reports or scoring). What are typical card company policies on whether they just write off the debt and send me to a collector or would file a lawsuit?

Thanks for your time and consideration in advance.

[Dad2]

temporary credit score hit?
You know it'll stay on your report for 7ish years right?

[GreatGadsby]

you also know that the FDCPA only applies to consumer debt and not anything that you're using for a business like your merchant accounts ?

it would not be wise to intentionally default and hope to not get sued.

[kandi6]

With a debt of $3500 it would likely be a small claims suit. Not sure of the jurisdiction, but I doubt the bank would waste their time. I think the bank would sell the debt to a collection agency. They will hound you mercilessly. They will call you every day. They'll track your phone number and other people you've called using your phone number, and then they'll call that person. If they give up, they'll sell it to another collection agency who will start all over again with their tactics. Your credit score will definitely take a hit. If you can take the heat for about a year or two, and have no plans to buy anything on credit for the next 7 years, you may be able to walk away from that balance. But you might be able to work something out with a local loan company to pay off that high interest credit card, and have a much lower payment and not have to live on the run.