No credit card provider can raise interest rate on credit card with any prior intimation. If they had done so, they have violated the law.

I got a letter this January i mail stating that I owe some debt. I had some doubts regarding the amount so I asked for a validation. Couple weeks ago I got a letter stating that If I didn't pay the loan amount within a certain date, I would accumulate a 10% per day charge annum until and unless the debt is paid off. Can they do that? I never agreed to pay interest on this debt.

I want to pay it off but curious if this charge is going to build up when it can't.

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No credit card provider can raise interest rate on credit card with any prior intimation. If they had done so, they have violated the law. Moreover, credit card debts are open contract and as you're in FL, the SOL period will expire after 4 years from 07/31/2009. After 4 years they won't be able to get the money back from you even if they sue. But if we consider the present situation, you need to start negotiating again. However, they have the right to refuse your offer anytime. In that case, you should seek professional help.

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I'm in Florida and had a BOA MC with a credit limit of $15,000. BOA out of the blue raised my interest rate from approximately 11% to 29.9% so I stopped making payments. This was the 07/31/2009. I was offered to settle (acct balance ~18K) several times but couldn't at the time. Now a collection agency is saying I owe over $27K. I have the proposed $$ that they wanted to settle with ($4,500) now but I’m afraid the new collection agency (Cavalry) will not be amiable to that offer. Any advice?

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Do you have any proof that you sent them a validation letter in January? Did you send it to the collection agency? If yes, they can sue you until they validate the debt. They also have to provide you data regarding how they are calculating the interest and fees. If they have not replied yet, they have violated the fdcpa. However, this only applies if you are contacting with a collection agency. What state you are residing in?


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