Card issuers attempt to collect decade-old credit debt
Due to the many sweeping changes the credit card industry has experienced over the last year, major U.S. card issuers have been looking for new ways to raise revenue and help their struggling bottom lines.
One of the ways some issuers have been looking to raise more capital is by collecting on old credit card debt. Although in some cases this debt was written off years ago and has passed the statute of limitations, consumers may still be liable for accumulated interest on the debt.
Recently, former movie star Frank Cavestani, who is best known for his roles in “Apollo 13” and “A Few Good Men,” received a letter from Capital One attempting to collect interest on old credit debt. In a letter he was informed that his old credit card bill had been accumulating interest for several months and that he was responsible for the payments.
“I am not sure there can ever be enough protection for consumers,” general counsel for Morgan Drexen, Jeffrey Katz, says. “I wonder how many American consumers succumbed to the letters distributed by Capital One.”
As a result, consumers who receive this type of letter from a major issuer may benefit from credit counseling and the debt education it can provide.