In Febuary I received a letter from a collection letter on a loan that I received in 1999 from Household Finance. I last paid on the account in I believe 2004 when I finally realized that with such a high interest rate I could never pay it off. I believe the interest rate was over 21%. I didn't know what else to do so I simply stopped paying it and hoped they would write it off and stop collecting interest on it. Eventually that happened and I was left with a close to $6000 debt. I'm not really sure what happened to the debt after that. It stopped gaining interest, but the last I heard from Household Finance was an offer for Christmas of all times (yea just the time any normal person can pay off a debt!) to pay 50% and they would forgive the debt. I of course didn't have the money to pay it. But since then I hadn't heard from Household Finance and nothing ever showed up on my credit report about it.
Well, in March I partially found out why...
In July of 2007 the debt was purchased by Asset Acceptance. They sent out a letter to me to a completely bogus address that I still have no idea where they got. Anyway, because I didn't respond, they assumed it was the correct address and continued to send notices this address. Mind you I still had the same cell number that Household had on file as my main contact.
Here's the kicker though and the root of my issue. Since July of 2007, Asset Acceptance started charging me the same interest rate of 21+% that Household Finance was charging me...
As I said, I finally received a call on my cell in March of 2008. They got my phone number when I redid my car loan and got a new vehicle. Needless to say, my $6000 some loan was now $9700...
I'm now in a much better place financially to start paying off this debt, but when my interest is over $150 a month I'll still never be able to pay this off.
This is the last serious bad mark on my credit and I really want to resolve it. Any suggestions?
Also, can Asset Acceptance really charge me this interest going forward? What about the interest they charged me before I was even notified they were going to charge me?
It's a crazy interest rate, there has to be something I can do about it.
One other note. Today I received an offer from them to pay off %50 of the now $10000 debt. I wish I had the money to take the offer, but they are only extending it until June 30th. Should I contact them and see if they will do anything more? The last time I spoke with them, the best they could do was for me to pay $415 a month till it was paid off... obviously not feasible.