Jump to content

Negotiating with Household on pays as agreed acct.

Recommended Posts

Okay here's the Cliff's notes on the situation.

In 1993 I was given a GM Card with a $3000 limit and promptly maxed it out. (I was 20 years old :oops: ) Over the years, I was paying the minimum that I could pay, then something happened and I missed a few payments and all the over-the-limit and late charges took it over $4000.

Three years ago we decided to go through Consumer Credit Counseling Services (MoneyManagement.org). Even though we sent them the minimum payments they set up, what they sent Household didn't cover the minimum payments and Household never re-aged the account, as promised by CCCS.

Around that time, we moved and we stopped getting our Household statements. We were getting our CCCS statements with the alleged Household balance on it, so I thought all was honkey-dorey.


Household finally caught up with me on the phone to inform me that my balance was now $6000. :shock: I straightened out the statement address, started getting statements and in April of 2004 we ditched CCCS and started taking care of things on our own.

Household listened to my sob story and offered to take $500/month for 6 months as settlement, or drop the interest rate and not charge any interest charges for 6 months, and to pay $140/month. At that time, we couldn't afford the $500/month (looking back, I should have made that work!) so we went with option #2.

Now that the 6 months are over and the interest rate is back at 24.9%, and there is a $35/month over the limit charge, my $140/month payment affects the balance by exactly $.73. Yes, 73 CENTS!

I'd like some feedback on how to approach this. Can I ask them to cut me a break on the interest rate or the over-the-limit fee? We're closing on a house in a couple of months and I can't afford much more than $150/month payment. The $139 in interest and charges per month is killing me!

Any help appreciated.

Link to comment
Share on other sites

There is some interesting case law that states over the limit fees are in fact FINANCE CHARGES and must be shown as such on your statement.

I dont know what else to tell you on this one other than to maybe talk to an attorney to find out if they can once again start charging you over teh limit fees.

Hell you'd be better to pay it til after you close on your house.. let it charge off and pay them a settlement amount then what you are doing now.

But make SURE to pay on it while you are preparing to buy a house.

Link to comment
Share on other sites

This topic is now closed to further replies.

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.