Yesterday, the debt collector took all my money ($8200) from my checking and savings accounts and left me a $0 balance. It was an old chase credit card debt that was charged off about three years ago.
They said they filed a court order and processed the case with the county sheriff’s department to take all the money out. I never received any notice because I was out of the country for almost 3 years. My brother spent the card and never paid it back. I knew there was a charged off account but I never thought something like this would happen. I waited because my brother said he would take care of it through a debt consolidation program. Next day, I called up the debt collector (Resurgence Financial) and he said the money that they took will be frozen for a week or something and asked me to come up with another lump sum ASAP so the account can be settled. The original balance on the Chase card was $10500 and now it’s $16000 with interest. I said I might be able to settle it for $9000 so I could pay $800 more to settle it but he said that’s not how it works.
He said to call him back when I have the money order ready for $9000.
He said if I send a money order for $9000 within a week then he can release the $8200 back into my bank accounts. Is he telling the truth here? What if he takes my $9000 money order and keeps the $8200 he took from my bank accounts? Will he really release the $8200 back into my account? What should I do? Can I still settle for less? What if I do nothing? Will they get the $8200 and try to get more from me? How can I negotiate better with him? Can some expert out there advise me? I also told him that I was not on any company’s payroll or have a stable income and my wife is 3 months pregnant. All the money they took was the maximum amount that I could borrow from friends and relatives before I came back. Please help. I don’t want to be used in a bad way if someone out there can give me a good advise. Thank you.
First, check with your bank to see if court papers were properly filed, if not, close the account immediately and never give that info to debt collector. Actually, close all accounts at that bank and move to a new one.
Second, do not count on ever seeing any of the $8,200 again.
Third, and this is unpleasant, if your brother used your card without your permission, he is guilty of fraud and you must file a police report, then turn it over to Chase’s Fraud division. You cannot be held liable for fraudulent purchases. Will it cause problems with your brother, probably, but he stole your identity abused your good will.
Fourth, tell the debt collection company you will take no action, make no promises, do nothing until you have a written agreement from them. Only when they put it in writing will you discuss the account.
This is your chance to make a deal. Use only money orders to keep the collection company from knowing where you bank and make no payments until you have a written agreement you can live with.