Darlene,

After a quick review of the NL Limitations Act ( http://www.assembly.nl.ca/legislation/sr/statutes/l16-1.htm#5_ ) it would appear that there is a 6 year limitation period for initiating any legal action in connection to collecting on a debt.

That said, you're not working with maximum leverage here. If the S.O.L. had expired, then you could pretty much start offering them whatever you wanted and work up from there (if need be). As it sits now, ask yourself if the bank is:

A) Aware of where you are employed;
B) Aware of where you live (is your mail going to a P.O. box or your home?);

If the answer is yes to both of those questions, then exercise tact when dispensing your offer - i.e. refrain from telling anyone something along the lines of "This is all your getting, so go and shove it up your rear, etc.." ;-)

My guess is that you can start by scrapping the tacked on interest, and offer them ~1/3rd of the original limit. Heck a $1000.00 should be seen as a reasonable first offer - though the C/A will probably squawk at that figure. That said, it may be best for you to make your offer directly to the bank. If I were in your shoes, I do that via the telephone as oppose to via a letter, as a verbal offer should ensure that you avoid renewing the S.O.L (that's how it is in Ontario, anyway). If the bank agrees to your offer, then have them draw up a settlement contract and ship it to you BEFORE sending them a cheque.

If the bank rejects your offer, then perhaps request that they suggest an alternative figure - just don't be surprised if they fire you off something in the range of $3500. Remember, they will most likely want to avoid the courtroom, too, so if you need to inch up your offer over the weeks, then do that. As long as you're demonstrating an interest to pay this debt, my guess is they'll hold back on pulling out the big guns - after all, they still have another 3yrs before they need to do that.

Do you get a feel for where this is all leading…? How and why the cards are getting played in this fashion? If not, keep asking questions, that’s what we’re all here for… Just keep in mind that what I’ve suggested is my opinion only (and I’m not a lawyer); there are many views on how to approach this topic – if you search the forums you’ll see that in no time.

Good Luck!

O.C

well it will be 3 years as of December 6, 2009. I live in Newfoundland and labrador. Any information would be greatly appreciated.

Thanks

Let's first find out how much leverage you have in your pocket... Approximately how long ago did you default on this debt, and, which province are you residing in?

I'm aiming to find out if the statute of limitations has expired, or if it's close to expiring. If it has already, then you've pretty much got the bank up against the wall, thus, leverage is on your side.

More info to follow once you answer those questions.

O.C.

Hi guys,

I am just emailing you to let you know that I was talking to capital one and they are going to have their collection agency call me within 3 to 5 days. I have a question, my question is do I still have to pay the interest on this credit card? I can only afford to pay regular montly payments and since this was a $3500 card it now has blown to $7983 with interest. I have no idea how to handle this call a little bit of help would be much appreciated.

Thanks