From the desk of McCarthy Law attorney Daniel Gamez:
Why on earth would anyone agree to pay something they are not legally required to pay? As unreasonable as that might sound, it’s happening all over the country right now. Credit card companies are stalking individuals with old expired debt and convincing them to obtain a new credit card. The catch? In order to get the card, you have to agree to pay back the old credit card debt that you may not have otherwise been required to pay by law. Generally, you are relieved of your obligation to pay debts under statutes of limitations that range from three to ten years, depending on which state you live in. By agreeing to this new plan, you breathe new life into that old, expired debt.
The kicker is that since you’re most likely considered a credit risk, the interest rate will be significantly higher on your new card. And if you default in payments, it won’t be long before the debt collectors start calling again to collect on that old debt. A right
they lost once the statute of limitations expired, but regained once the new card issued.
Latest posts by Kevin Fallon McCarthy (see all)
- Public Servants’ Second Chance at Federal Student Loan Forgiveness - April 10, 2018
- CREDIT CARD LOSS FOR SMALL BANKS AT AN EIGHT YEAR HIGH - March 22, 2018
- Rise of the Jumbo Student Loans - March 17, 2018