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Being Charged Double the Original Amount on a Defaulted Debt

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  • 03-21-2013, 05:34 PM
    Joshua808adams
    Being Charged Double the Original Amount on a Defaulted Debt
    My question involves collection proceedings in the State of: Wyoming

    I had an medical accident in Wyoming and needed to go to the hospital for a broken clavicle. I was unaware of one bill after taking care of all the others.
    Six years later I pull my Credit history and find the same bill, call the debt collectors and find that it's double the original amount. "Interest" Original amount was $1,040 They want to charge $2,135.51, but they'll make an exception to bring it to $1,560 and have it deleted from my credit history. Is this an acceptable offer or are they really taking me for a ride? I offered to pay the original amount but they declined.

    Any help is appreciated!
  • 03-21-2013, 07:25 PM
    johnb123
    Re: Can Debt Collectors Getaway with Charging You Double the Original Amount
    Quote:

    Quoting Joshua808adams
    View Post
    My question involves collection proceedings in the State of: Wyoming

    I had an medical accident in Wyoming and needed to go to the hospital for a broken clavicle. I was unaware of one bill after taking care of all the others.
    Six years later I pull my Credit history and find the same bill, call the debt collectors and find that it's double the original amount. "Interest" Original amount was $1,040 They want to charge $2,135.51, but they'll make an exception to bring it to $1,560 and have it deleted from my credit history. Is this an acceptable offer or are they really taking me for a ride? I offered to pay the original amount but they declined.

    Any help is appreciated!


    They paid pennies on the dollar for this debt. I would negotiate much lower. They want anything they can get. Make sure you do this right. Have it in writing, this settles the debt, they cannot resell the debt, and they will remove it from your credit report. Have they sued you? Is there a judgement against you? The statue of limitation in Wyoming is 8 years, so it looks like they are trying to beat the clock. If you want to settle, you can bring them down to 25% or lower.
  • 03-22-2013, 08:05 AM
    Mr. Knowitall
    Re: Being Charged Double the Original Amount on a Defaulted Debt
    Quote:

    Quoting Joshua808adams
    View Post
    Six years later I pull my Credit history and find the same bill, call the debt collectors and find that it's double the original amount. "Interest" Original amount was $1,040 They want to charge $2,135.5

    That's what happens when debts are not paid on time - they grow due to interest, late fees, and the like.
    Quote:

    Quoting Joshua808adams
    but they'll make an exception to bring it to $1,560 and have it deleted from my credit history.

    Have they confirmed in writing that once you pay the lowered amount that they'll delete the entry from your credit report?

    Is this a collection agent for the original creditor, or is this a junk debt buyer?

    Note that your negative entry is about to drop off your credit report - it's almost to the seven year mark.
  • 03-22-2013, 01:35 PM
    Joshua808adams
    Re: Being Charged Double the Original Amount on a Defaulted Debt
    They haven't confirmed in writing that they'd delete it yet, though I did speak with them again and they said they'll have it in writing on Monday.

    This is the collection agency that I pulled directly off my credit report.
  • 03-22-2013, 01:51 PM
    Mr. Knowitall
    Re: Being Charged Double the Original Amount on a Defaulted Debt
    The fact that it's a collection agency does not tell us anything about who presently owns the debt.

    Your state has a longer-than-usual limitations period, and the negative entry will be on your report for @1 more year (and potentially much longer if they get a judgment), so settling may give you peace of mind. But you should have your settlement terms in the form of a signed writing before you send your check, lest they cash the check then announce, "We didn't promise you that."
  • 03-22-2013, 02:45 PM
    df04527
    Re: Being Charged Double the Original Amount on a Defaulted Debt
    Be very cautious on the words they use regarding your credit report. They are infamous at telling you they will delete but what they do is update it and mark it paid in full. Big deal...yes good zero balance but VERY few will actually delete it so just be aware of their choice of words.
  • 03-22-2013, 06:45 PM
    Joshua808adams
    Re: Being Charged Double the Original Amount on a Defaulted Debt
    Thanks everyone, I think I've got a good idea of what to move forward with.
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