A few years ago, I recieved a credit card in the mail. The bank was Cross Country Bank. It said to call a phone number to activate it. My credit was really bad so I knew they would not activate it, but I call anyways. To my amazement, they activated it. Shortly later, I tried to use the card that had a $300.00 limit. The card was declined. I called and found out it had $350 worth of fees charged on it. The fees were charged for proccessing the card and annual fees for having the card. I told them to cancel the card and, since I never used it, I would not pay the fees.
Two years ago, I began working on my credit because I want to buy a house. Cross Country Bank was on my credit report. The amount owed was $1122.80. I was outraged, but I paid it using a check by phone. Of course with a check by phone, I did not get a receipt.
Three months ago, I began getting phone calls from Midland Credit Management, Inc. They were trying to collect $1122.80 for Cross Country Bank. I explained to them many times that I have already paid it. Each time I explained this, the person on the phone would get mad and start threatening to sue me.
Yesterday, (8-12-04) I recieved a certified letter from the Licking County Municipal Court. I am being sued for $1122.80 plus interest and legal fees. I contacted a lawyer who told me that since I paid by check by phone I had no receipt. Also, since I paid it two years ago, there is no record of the transaction at my bank. The reason being, my bank keeps transactions on file for up to a year. Basicly, I was told the only options open to me is to settle for less, setup a payment plan, or file bankrupt.
I have 28 day from yesterday to reply or I automatically lose the case. Of course, I don't know how to reply. I did some research on the internet. Cross Country Bank has been sued for fraud by 3 or 4 different states. Also, Cross Country Bank and Midland Credit Management, Inc have been reported multiple times for fraud.
Does anyone know of anything I can do?