My father signed up for a credit card at the ripe old age of 91, in 2002. A major bank sent him a letter saying he was automatically eligible to receive a credit card with a $10,000 limit. Who does this to a 91 year old anyhow? Back to the problem. He took advantage of this offer and he gave me an additional card. He was the primary card holder and promised to pay the bills as his contribution to my fledgling new business. Suffice it to say, business went bust. I paid the minimum monthly balance for about 18 months when I could not any longer and the bill went to CBV Collections. They tried to get my dad to pay but he kept putting it off to me. My sister, his executor to his will, sent them directly to me too. Sensing problems, she and he took his estate (small as it was) and put it in trust so when he passed away the estate would have nothing in it. He passed away in January of last year. The collection agency is harrassing me and I have told them repeatedly I want to pay however they don't like the small monthly amounts I can afford to pay. I am self employed so money is tight. The outstanding amount is $10,000 and they are talking litigation. Does anyone know if I have to pay all at once as they keep demanding? I have little cash flow, stressed to the limit and no money to be hiring a lawyer. Any suggestions anyone?
Collection Agency Conundrum
- Thread starter rtannoyed
- Start date
First of all, you should be spanked many, many times for taking advantage of your father's credit rating. There is no excuse for what you did. However, now that you've done it and probably caused your father undue concern and stress, you have to solve the problem. Obviously, the creditors can make a claim against the estate and any good lawyer can discover that you've hidden the assets to avoid payment. I suggest you transfer the debt into your name and declare bankruptcy. You really should spare your sister the stress and concern associated with this financial irresposibility. Besides, it doesn't sound like you have a lot of credit rating to lose. In declaring bankruptcy, you are still entitled to keep your accommodation, vehicle and other basic necessities of life. You really shouldn't strap your family with your financial obligations because it just upsets everyone ... so you deserve another 25 lashes on top of the spankings. Step up to the plate ... and besides, no credit card company is going to say that small payments are not acceptable providing they cover the interest and a tiny bit of the principal. In fact, you are their favourite type of customer.
And ... if you have a credit rating, take out a bank loan at a much lower interest rate, pay it all off and make the payments to the bank.
And ... if you have a credit rating, take out a bank loan at a much lower interest rate, pay it all off and make the payments to the bank.
Don't even need to declare bankruptcy. What you need to do is sign a legal agreement with your father's estate that ties you into a loan repayment scheme; then, your father's trust can repay your debt, and you pay your the trust back just like you would to a bank, but if you miss a payment, your sister can sue your ass off. You have abused your family, and need to restore yourself. Work at it.
I get the distinct impression that someone is trying to get away with not paying anything at all ... because it's a "financial hardship". Furthermore, if I was the sister I would want to ensure that after dividing the estate, there was still a 50% left for me ... not saying I'm greedy or anything, just wouldn't want to foot the bill for a sibling. If there wasn't 50% remaining, I wouldn't agree to paying the principal out of the estate. Finally, any legal expenses would eat up the entire estate in no time ... lawyers have a funny knack of assessing exactly how much money there is, litigating until it's theirs and then closing the book with a settlement that no one is happy with.
When I was a child there was a family down the street ... three children. One died as a child and there was a sister, brother and mom left in the 1990's. Mom passed away and somehow, a property that was worth about a million ended up being split in such a bizarre way that the sister committed suicide and the brother is living high. Something very fishy happened with the estate and the family. The sister's family got nothing, or what they did get was quickly taken from her by her extended family. I wouldn't recommend that someone try to screw the sister out of her inheritance to pay off foolish spending because the sister may be too good natured to know what is happening to her.
This might be a good deal more complicated than it appears. The father was the primary card holder, and depending on the nature of the contract between the primary card holder and the credit card company, the father's estate might be liable for the debt regardless of who ran it up. The debt might also revert to the estate if the secondary card holder whose debt it really is--at least ethically, but the law and ethics aren't always on the same side--declares bankruptcy. Credit card companies are pretty careful about the terms of those contracts, they'll always try to stack everything in favour of getting their money one way or another, and I'm sure they count on most people never reading them.
I think this is going to get ugly.
I think this is going to get ugly.
If it's already lodged with a collection agency then even if you paid the full amount the bank will only receive a portion of it. They are out of the picture, they have contracted the agency to collect it. Even if you paid the bank directly they would need to send 30% or more to the collection agency.
Now consider the collectors. If they get $50 or $100 a month then they'll make $15 to $30 per month. Not exactly a big catch. They'll probably expect someone much bigger and faster. You might want to try one of those loan shark services if you want to nickle and dime the process.
Now consider the collectors. If they get $50 or $100 a month then they'll make $15 to $30 per month. Not exactly a big catch. They'll probably expect someone much bigger and faster. You might want to try one of those loan shark services if you want to nickle and dime the process.
