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Debt Settlement with Household


Erika
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Long story -- will try to make it short. I was involved with a CCCS who did a great job -- except with two of my creditors, Household and First Premier. They didn't get an agreement signed with either of them lowering interest rates or reaging the account so I wasn't paying over the limit and late charges. I never got another statement, or phone call from Household after we signed our CCCS agreement, so I foolishly assumed all was well.

Until.... we went to see a mortgage broker and she showed us 18 months worth of 30 and 60 day laters for Household on our report. I called them (it was before I found this board) and explained the situation to a very nice representative. She gave me some options. THe first was to settle for 50% of the debt, paying it off in 6 months. The second was to pay the late fees and charges, she'd lower the interest rate (29%!!) for 6 months until I could get it under control. I took the second options, gave her my bank account # for auto withdrawals and :x and they took out $564 and are still reporting me 60 days late.

I've since re-thought my decision and have found this board. I'd like to take them up on their 50% settlement offer, so I wrote a letter offering that settlement, CMRR over 30 days ago. I just got this letter from them.

We are writing to alert you that your account is over its credit limit. We trut that this is just an oversight. Please send a payment of the greater of $0.00 or $2,686.67 to ensure your account stays current and is brought back within its cedit limit. An overlimit fee and/or finance charges may have been charged to your account since the date of this letter, increasing the amoung needed to bring it under limit.

Any ideas? I'm getting frustrated because it doesn't look like they're even reading my letters. Calling is still a big no-no, right?

Thanks

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I don't think I can offer much--but at least my reply will give ya a "bump" up the latter a bit and maybe someone more experienced will have some thoughts.

Was it clear how much you needed to pay as a "downpayment?" In other words is it possible that 564.00 was the interest and fees? Someone else may know better how to word this-but-once you are late w/ a pmt it is logged on your CR, even if you pay up. At least that's my understanding (sorry if I'm wrong).

Anyway, based on what you said you apparently did not get the agreement with Household in writing? It was all over the phone? Unless there is a way to put a stop to the withdrawels by Household, what you *may* need to do is close your checking account and/or reopen a seperate one. It really looks like they're thinking you agreed to the first option (to pay up within 6 months)--again, unless that 564.00 is what the fees/interest/etc was suppose to cover.

I'd take whatever measures I needed to in order to save my checking account from further pilfering and write them a CMRRR letter stating, in detail, what I agree to and send them a seperate copy to sign themselves and send back to you. DO NOT send any further payments until an agreement is reached. Include a SASE and see what happens. DO NOT agree to withdrawels anymore or ever for that matter. Let them know you're willing to agree to other forms and methods of payment. Any other method BUT that one. There's money orders, cashiers checks, overnight delivery, fedex, ups, etc, etc--in fact, when ANY creditor or CA asks you about a bank account tell them ya don't have one if you have to. And yes, calling will probably do you NO good (they've already proven that I'd say).

Your other option is to just start sending in payments "per the agreement" as far as getting the account under control.

Sorry--I sure wish I could offer you more. Good luck and keep us posted with updates.

Elyse

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