Asset Acceptance LLC collections question

[justdaniel]

Long story short, I let a credit card go into default back in 2006. The credit card issuer wrote off the account in the tune of 17.5k. 7 months later, I got a letter from Asset Acceptance LLC., stating they bought the account and I owe them $29.1k. I sent them two letters of validation and all they sent me back was a simple printout from their office, which didn't show any account detail just the account number, my name, last four of my social, and this newly inflated balance. When they sent me the validation, they had the 17.5k as the principal and 11.5 as the interest. Isn't there a limit on how much they can charge on interest? According to the FDCPA section 809 (b), "(1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law." Now I don't have my original contract from the credit card company, but I highly doubt any law would allow a collection agency to charge 70-90% interest. Any advice?

 

[mightymoose]

My advice is to ignore them.
If you are summoned to court then DO go to court and argue that the statue of limitations has expired. The SOL in Texas is 4 years for collection on a credit card debt. The four years is from your last date of activity (your last payment) on the account. This being the end of 2010, the SOL has passed, and the new owner of the debt is SOL for collecting. They may legally continue to attempt to collect the debt, which means you may still get threatening phone calls and letters from them to make you afraid of court.... but with the SOL passed you have a very strong defense in court, and they can NOT get a judgment against you ordering you to pay anything so long as you appear in court and raise the defense.