Clout Visa Fraudulent billing and outrageous APR - nationwide

I had applied for the clout visa before starting college. As I used the card I was also making payments and the card amount was staying in check. All of a sudden I stopped receiving bills from the company. I would receive random bills every few months until they stopped completely. The balance had shot over my limit. Next thing I knew my billing amount was well over $2000 when my limit was only $1750. It has been about three years since I have had the card and I have never recieved any information about my account either by phone or mail.

The most recent occurrence came last week when my aunt called and said they were being harrassed by a collection agency and saying that they were filing bankruptcy on me. I called the agency and questioned them on how they received my aunt's phone number because I have never lived with her nor do I have frequent association with her and I was told that information is not important. Then I was told I had to pay an amount of $1000 or $800 by the next day or they would file a civil lawsuit against me. I asked why I haven't received any bills and why they had not contacted me about my account. They told me that my account went into default in January and that I owed an outrageous amount of over $3000. This was ridiculous because the card has been cut up and the card had been canceled for well over a year after a few unauthorized charges appeared on my account.

Since it was late June I asked why I had not been notified earlier that my account had went default. They told me that the company had problems getting in contact with me. How could this be when neither my phone number nor address has changed since I first applied for the card? I was afraid of what this situation would do to my credit so I told the collection agency that I would do my best to get the amount they were asking for and that I would call them back the next day (Friday). When I called on Friday the agent was out of the office. I called back on Monday to inform them that I was not able to come up with the money and I was told that they sent a check out of my account without my authorization for $800. I feel that I have been treated unfairly and now I am questioning the fact that this company is defrauding me. Could you please advise me on what action I need to take next? Thank you!

Ralph
McKean, Pennsylvania
U.S.A.