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Citibank - trying to settle CC balance


jrbooks1
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Hi, I recently lost my job (December 2004) as it was sent to another country. The major company is trying to save money. On to my issue with Citibank. I stopped paying in September 2004 & have not made a payment since. My balance is about 13,000.00. They were not wanting to settle for any amount. Now, we do not get any calls from Citibank as I believe it's been sold, no collection company has called & we have not heard from Citibank since Jan 05. I had only spoken with them by phone, I never sent any letters to them. I've been told by someone that I need to send letters to the higher ups.

Has anyone had any dealings with Citibank in dealing with accepting less than what is owed them?

I refinanced my house in November & got some to pay them off but not enough for all of it. I do have a letter stating that my job was moved out of country & I was not offered a job.

We also, did settle with MBNA as they closed my account & we settled with them for about 1/2 of what was owed.

Please help out..

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Citibank will assign the account to a CA that works their recent charge offs.

You will probably get a letter soon from a CA. It takes 180 days of no payments then they have to charge off the account. Sounds like they may have already done that. The SOL is also probably a long way off so you're only options right now may be to settle.

If you go back and forth with the CA a few times, you can get them to settle for about 50%. They will act like they are doing you a favor by offering to settle for 80%+.

Don't talk to them on the phone. When you get the first letter, DV the debt within the 30 days, add that all future correspondence must be in writing and send out CMRRR. They will verify quickly with citibank because citi still owns the account.

good luck!

If you have any money, you may want to deal directly with citibank.

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It sounds like we were lucky. It did not happen overnight, they called us over & over again. Sometimes I called them back trying to work out the deal. I was getting the money from my mother n law & that I was not able to do all of it. Also, losing my job & having 6 kids may have helped the story (a true story). I can look to see if I have a name of the agent on the letter they faxed me, if that might help you. We settled for 50% of what was owed.

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Citibank probably won't go below 85% because they didn't charge off the account. Once the account is charged off, then the CA who is assigned the debt - which citi still owns, will settle for much less. Citi still makes quite a lot of money on your account in charge off status when factoring in tax write-offs and money that you pay towards the balance.

If citi has not charged off the account yet, you may be better off credit score wise to get into a hard ship program with citi. This is an agreement between you and citi where you pay an agreed upon amount each month at 0% interest for a year. You would need to call citi as they are probably not going call you anymore. It is usually better not to let a debt go into a CA in the first place.

After several years of the account being in charge off status, then they will actually sell the account because the odds of collecting on a several year old debt is less and less each passing year. Once SOL is past, they can only scare you into paying with the help of your ignorance of the debt collection process. They will play on your moral values in that most people feel morally obligated to pay their debts even if they don't have to after all the credit damage has been done. If your credit is trashed, you will gain nothing by paying off a SOL debt. In fact, you may even lower your credit rating by re-aging the account!

A DV is a Debt Validation. It is your right to dispute any and all debts and it is in your best interest to do so. If I pull your credit report, see you have some charge offs that you never paid, start calling you and sending letters for payment, you will most likely pay me! I have no connection to the original creditor and I just made some easy money! See ya sucka.

There are samples of DV letters that you can check out on this site.

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HI.....

I have been trying to settle with Citibank for about 9 months now. It's very hard to bargain with them. I stop paying my bill about 3 years ago... My situation was similar to yours. When I stop paying them, I started to recieve annoying calls looking for payment. I delt with them in the first few days but stop answering all calls from them because they wouldn't even consider my offer. I would ask me to at least pay them 30 dollars that month and when I paid then 2 days later they would call me again asking for more.. So I would stop... I had gotten laid off but i guess they don't recognize that. The next few weeks i ignored them. They finally got the point and stop calling, i even would ignore there court dates. A CA would never call me. They only started calling me when i offered to settle but i tried to settle with citibank but refused because they stated they sold the account. So I started dealing with the CA.. (letters only) . I tried to settle but couldn't becuase they always wanted more than what i could give them. So finally i sent them a validation letter. 2 weeks later, citibank sent me records of purchases i made to the cards. So again i stoped. Then not to long ago, i started writing settle offers to them again. and this is where i currently stand.

Yes, its hard to deal with them.. So far so success.. hopefully u can do better.. Let me know the results and ill keep u postedaswell.

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  • 2 weeks later...

CITIBANK charged off $5,000 with us and their CA in Las Vegas wouldn't settle with us for less than 80%. We offered them 50%, which is what AM EX and CHASE took.

We are totally frustrated and confused by their stance, too. Finally we withdrew our settlement offer and told them they were ignorant for not taking the money we borrowed.

I still haven't lost all hope, but how do you get CITI to work you instead of their CA?

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  • 2 weeks later...

I hate CitiBank. Are you going to go BK? $17,000 is a lot. We had a BK lawyer tell us that if we did credit card transfers so that each was under $5,000, they were less likely to sue.

If they think you own a house then they probably got some wrong information off your credit files. Have you gotten a copy of them yet?

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Citibank probably won't go below 85% because they didn't charge off the account. Once the account is charged off, then the CA who is assigned the debt - which citi still owns, will settle for much less. [

This is not true. Citibank instructs their CAs not to settle for less than 80%.

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I spoke with an attorney Sunday and I can't go BK. im worried about a judgement and losing my bank account. Lets say they freeze your account and you try to open another a) will a bank let you open another account and B) will they freeze that one to? I didnt get an answer from other posts im wondering if they offer a settlement with payments+ interest or do I have to settle with a lump sum? This economy has really put me in the crapper.

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Hi, I'm sorry to hear that. I know that the new BK laws suck.

It would take time for them to find and then freeze your bank account. First they have to sue you, win a judgement, and then collecting it is the hardest part for them. Have you thought of getting travelers checks and putting them in a safe deposit box or a safe? (Money orders might be more traceable). I think they go after your paycheck first, but they can only attach 25% of that.

Someone here said that Citi would do a 2 year repayment plan as a settlement, but it sounds like the payments might be huge for that. Is this your only overdue debt? Because, as bad as the Consumer Credit Counseling places are, having one debt with them to avoid attachment might be doable.

It doesn't hurt to talk to Citibank's collection dept. and ask if they would accept a settlement of payments. I would try by giving them a list of my expenses and income (and make the medical as large as possible), to show them that you can only afford a certain payment. Don't make your expenses too extravagant, except for medical. Good luck and let us know what happens. I'm very interested in any way that Citibank is going to act!

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Truly I dont have a paycheck. Old Employer is out of business also. What about my Paypal account you think they will freeze that to? Out of State Banks also? What about my car could they get that from me? If they send a notice to the bank does the bank have to freeze the account by law? Im very good friends with a Bank Manager you think he could do something for me? Im kind of embarrassed to tell him though. When CA's call I tell them im unemployed and they ask when im going to get a job and I reply with "Idont have a crystal Ball" & I ask them if they are hiring, they dont like to hear that LOL

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Haha! Your Pay Pal account! That sounds like genius to me. How would they ever find that?! (Don't depend completely on what I say, though - you never know what Citibank might do). Out of state banks might work, especially small town ones that are not in many cities - but I don't know what the bank system is like for sure. Those are both good ideas. Maybe a Google search on avoiding attachments or hiding your assets would give you more ideas. You aren't the first one who has had to try that, and I'm sure much has probably been written about it.

I'm not surprised the CAs are frustrated that you don't have a job. A paycheck is the first thing they go after cause it's easy.

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  • 1 month later...
Guest sifxpert

Hey guys, I was wondering if you have already resolved your Citi and MBNA situations. The last post was back in August some time so I was interested to see where you are now.

Each of you seem to have a pretty educated idea to accomplish what you are looking for but once you are in Citi's grip theres really no gettin out. I read on one post that one of Citi's CA:S were going to sue you? Do you mean an attorney? A local attorney? Or do you mean a CA. Citi's CA's do not sue. So, perhaps you didn't use the correct term or you may have been threatened by a CA that they would refer the account to an attorney to sue?

Another Post I read the member mentioned she could not settle with MBNA. I have posted several how to's on getting Citi and MBNA settled. You may find them useful.

I have extensive knowledge with Citi and MBNA accounts so if you are still fighting I may be able to offer some useful tips. Citi is tough but will settle for 50%. The only reason they wouldn't is if you had balance transfers or cash advances within the past year. Otherwise, you can get 50%.

Just whatever you do, never send a CD or a DV. If you do, the account will be recalled and the nsent to an attorney to file suit.

Again, if you have settled I'm curious to see for how much and how you did it.

Thanks!

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Madmanmike,

If you haven't done so already (since this an older thread) do check with a few more BK attorneys. Call some CPAs or other attorneys to find out who the good BK attorneys are. I got completely different answers from all three BK attorneys I spoke with.

For myself I ultimately decided settling would work better. My situation has some specifics which pointed me towards settlement instead of BK 13. You'll have to decide whats best for yourself.

Good luck

Gettinout

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Bankrupt is not for me, having to do with certain requirments needed to go bankrupt that I can not produce.

Citibank's CA has served me a summons. I Did DV them without an answer from them. As I posted in the legal post When I went to file my answer I found out that they didn'thave a docket number and haven't (as of yet) filed the lawsuit. Seemed strange to me to actually get served by a marshal and then not get sued.

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Guest sifxpert

What state do you live in?

My suggestion if you're not in Fl. or Tx or Pa. since things have not progessed too far as of yet is to write a hardship saying you are unemployed, do a financial disclosure list income as $0.00 and expenses...child support, medical expenses weigh heavily in addition to rent and all standard utilities. Since you have no income state that your family is helping you through this difficult time but can only assist with necesary living expenses....go into detail about whatever the case was that you got into the mess you're in. Make it sound intense whatever the case was...you may want to be as creative as possible without completely fabricating a story.

Put as much evidence in writing as possible supporting your ability to pay and definitely mention you own no property and send in a check along with this for $100.00 dollars and state this is all you can pay until you get back on your feet and then you will pay more and make sure you write that upon deposit of these funds you hereby agree to these terms and will not pursue any further collection activity including any lawsuit. If I fail to comply with these terms I fully under I have breached this contract and accept the consequences.

If you convince them that this is indeed the reality of your situation they should accept..I've done this on numerous accounts and sure enough, they deposit the check allowing us to build more funds and as always the opportunity to settle down the road is always there.

This is my best advise for you.

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I am doing better now financially I started a small business. I might have lets say 50% of the ammount they are looking for in about 3 months from now. I also received a letter back from the Lawyer/CA representing them. I am posting this letter in the legal section of this site. When you mentioned a hardship letter did you suggest sending it to the OC or the CA?. How would I go about negotiating in 3 months? I hope to delay any further legal action I know I have delayed it for at least 30 days while I look over the documents that they sent me.

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Guest sifxpert

Follow my previous instructions. Do not mention you can have 50% within 3 months when you are telling them in your hadship you have nothing...you would obviously sound inconsistent and they would go after you.

Send this letter to the Ca attorney and go from there.

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