Old cc debt loaded on new cc? by: Debtcollectionanswers.com
Be careful!!!! The kind of card you've been offered is commonly referred to as a debt collection credit card.
If you owe the credit card company the money, it is legally entitled to require as a condition of giving you a new card that you repay the old debt and so it can add that uncollected balance to the credit card with the hopes that you will repay the debt. The danger in agreeing to that is that the statute of limitation on the old debt has expired and therefore, the company cannot sue for the money. But, if you accept the new card, you will be agreeing that you owe the old debt and when you do, the statute of limitations on the debt will begin running all over again, which means that the credit card company will be entitled to sue you if you do not pay it. (In most states, the statute of limitations on unpaid credit card debt is 6 or 7 years, so you will be in jeopardy of a lawsuit and all of the hassles and costs that a lawsuit brings for years to come.)
You should also know that federal regulators have taken action against some credit card companies that have offered debt collection credit cards to consumers without being clear with them about the terms of the card -- like the fact that they will be restarting the statute of limitations running again on their old debt by accepting the card. If you find yourself in their same situation, schedule a FREE consultation with a consumer law attorney.
A far better option if you really want a credit card is to look into a secured credit card. You may not qualify for one right away but if you manage your finances responsibly you will eventually. Two sources of information about various secured credit cards are credit.com and creditkarma.com.
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