Consumer complaint received 2017-08-10
Company: Atlanticus Services Corporation
State: CO
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Other features, terms, or problems
Sub-issue: Other problem

Complaint:
Approximately18 to 20 years ago I acquired an Aspire credit card -- I frankly do n't remember the circumstances ( I believe I had a secured credit card through a bank following my divorce, and this may later have been transferred to Aspire ). I do n't know the original credit limit, but I do n't think I ever charged more than a total of {$2000.00} or {$3000.00} -- most of which was expenses associated with moving from the XXXX XXXX area to XXXX in XX/XX/XXXX. I have been making monthly payments since then. To my recollection, the last time I used the card was 12 to 15 years ago. Due to the high interest rate ( 30 % ) I stopped using it at least 10 or 12 years ago, and the company cancelled my account approximately 9 or 10 years ago. I 'm sorry that I do n't have exact figures or dates -- that 's part of the problem, that I no longer have the basic information that I have on current accounts. Nevertheless, I continued to make monthly payments, and never missed a payment until recently. I am a well educated person who has held responsible management positions and would never knowingly default on a legitimate debt. I have earned relatively high salaries over the years, had a 401K plan and a healthy savings account, and planned to continue working into my seventies. Unfortunately, three years ago, due to an unanticipated health crisis, I became XXXX and was no longer able to work. Today, after XXXX XXXX I am XXXX XXXX XXXX XXXX and my only income is XXXX XXXX. I have exhausted my savings, and in an attempt to avoid bankruptcy, have carefully reviewed my current debts and attempted to reduce expenses as much as possible. It was during this process that I realized the Aspire account had remained at around {$3000.00}, despite making payments for 15 years and I had no way to verify the amount still owed. I wrote to the company requesting the following information : what was the total amount ever charged to the account ; what is the total amount paid on the account ; how much has been paid in interest and fees. I thought this was a reasonable request, but despite several months of correspondence, I have been unable to obtain an answer. I stopped making payments until they would verify how they determined the amount they said was still owed. I told them I would resume payments when I received the information requested. I estimate that I may have paid some {$15000.00} at this point against an original debt of $ 2- {$3000.00}. The company for many years had nontraditional practices, including imposing a " periodic finance charge '' of between {$85.00} and {$100.00} a month in addition to the high interest rate and any late fees. I recently found a statement from XX/XX/XXXX that showed of the previous month 's {$100.00} payment, only {$20.00} was credited toward the balance. They used to have a different due date each month and charge {$14.00} for making a payment by phone.. Despite my current financial situation, I have continued to make regular payments on my other accounts, all of which are current. It was not my intent to stop paying on the Aspire account, but I did n't feel I could justify continued payments until they could verify the amount owed and how they arrived at that amount on an inactive account. At one point they said they would provide the information if I would pay {$5.00}. I sent them a check, and eventually they sent a statement of the current amount owed, interest rate, etc. That is n't what I was asking, and further correspondence has proved futile. My credit rating has suffered because of this ( a year ago it was a respectable XXXX ). Now they have turned the account over for collection and are threatening legal action unless I pay the full amount due, which is impossible for me due to my limited income. I wrote to the collection agency and explained the situation. I told them it was never my intention to avoid payment, but merely wanted them to verify -- with factual data -- how they determined the stated amount owed. I would think any reasonable person might ask the same questions after paying an estimated {$15000.00} on a closed account for a dozen years and still owing nearly {$3000.00}. I believe Aspire may have sold the account to another company ( it no longer charges the extra finance fee ). If they do n't have the information I requested, they could have told me that. Instead, they seem to be avoiding providing the answers. When I looked up Aspire online, I saw that there are many complaints about their practices. Now I worry that I wo n't be treated fairly. If they can verify the legitimacy of the amount they say is owed, I am willing to resume making monthly payments, but I ca n't pay the whole amount at once. Again, it was never my intention to avoid paying a legitimate debt, but after so many years I have no way to verify how much was charged, how much has been paid, how much is still owed. I just want a response from the company providing this information and hope that they might mediate a reasonable settlement or allow me to resume monthly payments ( with some assurance that it eventually can be paid off ). I believe I have paid many times over the amount ever charged on the account, making monthly payments for over 15 years. So it is n't as if they have been shortchanged. I am trying to be reasonable -- I hope they can show me the same consideration. I am a 70-year-old XXXX woman living on XXXX XXXX and doing my best to meet my financial obligations. I want to settle this matter as soon as possible without being bullied or threatened.

Company response to consumer: Closed with explanation