Started out with about a $300 credit line. Late fees and over-limit fees escalated until the balance was about $894. I had paid for a while, only to realize it was hopeless. The fees alone were more than I could pay.
An interesting fact: You can only charge $40 over the limit or it will be declined. Why don't they just decline it if it goes over the limit? It is simply because they want the fee. They won't let it go higher than $40 on a charge (so they won't risk much money). So basically all these fees amount to charges for going over an extra $40 or less. And when I read the other reports, I hear that sometimes it is already over the limit when the cards are received.
The solution (if there is one)? I ended up just ignoring it and it ended up being charged off as a bad debt. They were a little better than Cross Country Bank. They tried to offer a settlement (still in there favor, however. If you are in a position, try for a 50% settlement, but get an attorney to help write it up.) From what I have been seeing in the other reports, it seems like that is the only option for some people. If you keep paying them, it will remain on your credit report for 7 years after the last activity. 7 years being reported for a bad debt is better than 7 plus all the years you keep trying to pay. If you have no assets, and a small income, then it would be foolish for them to sue you. It has been at least 2 to 3 years and I have not heard from them anymore. I had finally just told them to close the account, and not bother me anymore.
They play on your fear and ignorance. If enough people got together, I am sure they could be charged with multiple violation of usury laws, not to mention fraud, harassment, etc. Remember one thing: Their only business with you is to "lend you money" and the income from this "lending" has historically been called "interest" or "usury" no matter what they call the fees. They are still interest, and are amounting to hundreds or even thousands of percents per year. These people are common criminals and should be in the federal penitentary for swindling thousands of poor people.
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