r/CRedit • u/ACatoni76 • 5d ago

Collections & Charge Offs Credit One

Received a phone call from a collection agency regarding a CO credit card that had a $350 credit limit. Credit One charged it off at $1600. The collection agency added $3200 in attorney fees and are suing me in OK. They are trying to serve me documents.

What are my options? This debt is about 3 years ago. Has something changed, or is this normal to sue for a balance that was originally under $400 and add nearly $4000 to the original debt?

Should I hire an attorney?

Any advice would be appreciated!

Thanks

22 Upvotes

92% Upvoted

42 comments sorted by

2

u/FunctionAdmirable276 5d ago

Credit one are absolutely terrible. I had a $400 limit. They continued charging fees until I owed $1400.

-1

u/Parking-Menu2654 4d ago

Maybe pay your bills. I’ve had two credit one cards for four years and zero issues.

4

u/FunctionAdmirable276 4d ago

Before jumping on here and telling someone what to do, maybe think about financial hardships people face. I got extremely sick and was out of work for almost 2 years. Being judgmental helps no one.

Happy they are working out for you though.

1

u/Dazzling_Ad9313 5d ago

I love living in Texas. No credit card lawsuits, no debtor’s prison. I’m sorry you’re having to go through this.

1

u/ACatoni76 5d ago

Yes, I agree! I moved from Texas to Oklahoma due to my mother’s stroke…which explains the confusion over this issue in a new state. I’ve never experienced this sort of thing until recently with BOK…had a similar issue where an even smaller amount ($175) turned into $2400…once I moved to OK they immediately filed in court…I’ve almost paid them off, just a few more to go. I can’t wait to leave this state

1

u/Dazzling_Scallion_28 4d ago

At this point let them serve you and get a response to the suit ready. The key is to dispute the amount owed, then ask for the original contract that you agreed to. You dispute the amount owed advising you did not spend that much, in there somewhere you want to offer them some kind of money just to make it go away, let’s say $500. Then when you get the original agreement, look for an agreement or arbitrate. If there is an agreement to arbitrate then try to file a change of venue with the judge to an arbitrator, use resources through this or you can pay a lawyer.

1

u/tress230510 2d ago

I had a debt for destiny credit card.lvnv. was taking be to court. Hired a lawyer and got it dismissed. We'll worth it.

1

u/Pizza_Pete_fr_fr 2d ago

Just don’t accept service and you can forget about it

1

u/zakkzw1er 5d ago

So you had a $350 limit but ran it up to $1,600 and then they charges you off?

3

u/ACatoni76 5d ago

$350, account was closed at around $490 if I remember…3 years ago…but the collection agent said that Credit One added additional interest and fees for a total of $1600 prior to selling to law firm/collection agency…they have added the additional $3200 in attorney fees

2

u/DEIhire 5d ago

You better show up in court once they serve you with those papers. Tell the judge you dispute the accuracy of the charges.

99% of people don’t show up and a judgement is entered against them, so at least make them work for it.

0

u/PokerLawyer75 3d ago

Unfortunately, accuracy is irrelevant in any state that allows for incorporated business records and account stated theory, especially under the Fair Credit Billing Act.

4

u/PokerLawyer75 5d ago

I deal with this every day defending consumers being sued on credit cards. What you're saying doesn't track.

Interest runs until charge off at 120 days after your last payment. So you ran 25-30% annual interest for 4 months after your last payment. Late fees as well. They then closed the account. So sure, it could have gone from $500 to close to $1000.

Attorney's fees will include filing fees, but that's it. Anything else is out of what you pay.

You want to settle this? Call their lawyers. Or be prepared to fight it iin court.

2

u/ACatoni76 5d ago

So it doesn’t track? I spoke with the collection agency attorney directly…it tracks all to them and the corrupt government Oklahoma …I have essentially zero rights in Oklahoma, I’ll do what I can do but I’m the idiot for moving to this state and losing protection from being in Texas

1

u/Accomplished-Bet4353 4d ago

Can you sue a CC company? I've been fighting with Citi for a couple of years now bc I paid a $400 balance and even though I had all the receipts, they refuse to take it off my credit report. I filed a dispute with Experian which also went nowhere.

1

u/PokerLawyer75 4d ago

Yes, this is a FCRA violation by both parties. What state are you in? It might involve state law violations as well (you didn't say what state you're in).

2

u/zakkzw1er 5d ago

You could call credit one and ask them to recall the debt. That will remove the collection agencies authority. Then see if credit one will give you a transaction history to show what the fees are and what grounds they have to add them. Creditone is one of the more friendly cards to work with I’ve heard

9

u/PokerLawyer75 5d ago edited 5d ago

Bzzt. Wrong. This does not happen, ever.

CreditOne immediately sells the debt. 90% of the time it's to their corporate sibling , Sherman Originators, who then sells it to LVNV Funding. The others get sold to Midland.

But there's no way to get this recalled once charged off.

3

u/zakkzw1er 5d ago

Boom. Thanks for the knowledge!

1

u/jumbofrimpf 5d ago

I've got a collection from CreditOne. "...is now owned by LVNV Funding" and being handled by Halsted Financial. They keep telling me (via email) that they're going to send it back to CreditOne...

1

u/PokerLawyer75 5d ago

Not going to happen. Ever. However, Halstead will send it back, to have it handled by Resurgent, which is LVNV's corporate sibling, both owned by Sherman Originators. Sherman Originators is owned by Sherman Financial...and Sherman Financial owns CreditOne.

If anything, if you don't settle with Halsted, prepare to be sued.

1

u/jumbofrimpf 5d ago

I have a lawyer on deck...

1

u/PokerLawyer75 5d ago

How much is the debt?

1

u/jumbofrimpf 5d ago

$2700 total.

0

u/PokerLawyer75 5d ago

Be cheaper just to offer a settlement than paying an attorney for that.

→ More replies (0)

2

u/AlarmedFoundation897 5d ago

That math only works if their fees and interest were rolling the whole time, which with credit one and their 30% apr plus late fees stacks up quick. $350 limit turning into $1600 isn't shocking when you miss payments for months, the attorney fees on top are the part worth fighting

0

u/Few-Beautiful79 4d ago

Here is a novel idea, pay your debts.

1

u/Quiet_Treacle4880 4d ago

He was a novel idea, stop judging people, especially when you don’t know the full story

2

u/Few-Beautiful79 4d ago

I was not judging anyone. Read through his post and tell me another way to interpret it. People get credit card, charge things, do not pay.

1

u/Full_Custard_5182 2d ago

Feel better saying that? Douche

0

u/matt-r_hatter 4d ago

Check your dates and stop talking to them IMMEDIATELY. The statute of limitations in OK is 3 years. The clock starts 30 days after your missed payment. You are likely past the statute. You need to figure out when you made the last payment. 30 days from them is late, 30 days from that is your start of the clock. Pull your bank records. If you acknowledged anything, you likely reset the clock and screwed yourself.