sifxpert

Having problems settling your credit card?

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If anyone is having problems settling debts I can help. As long as your account is not secured I can help you get the lowest settlement possible. Post your question on this thread and I will respond. I can coach you through every step of the way and in some cases provide the best contact number and even the ext. for a person at the credit card co. or collection agency that can help. If you are having difficulties with Citi or MBNA I will explain exactly what you need to do in order to get 25% with MBNA and 50% with Citi. I will assist any individual looking for assistance in getting out of the grip of collectors.

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What are your suggestions for settling with B of A? My account is within weeks of charging off. I would greatly appreciate your input.

Gettinout

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B of A settles for 50% pre-charge off. If you need a contact number at B of A I can give it to you. I believe they will do up to 3 payments over 90 days as long as you do not have any other outstanding balances with B of A. Meaning, if you have 2 cards you need to settle both at the same time.

Did you send a cease? If so, more than likely the account will go to Fred hanna & assoc. B of A is a little tricky because they send 60% of their charge off accounts that have a cease and desist to Fred Hanna. I've settled with them for as low as 30% but it took a lot of going back and forth and sending in hardship letters. I have a lot of energy sometimes..

There is the chance that the account can go to a local attorney who will settle for 50-60% depending.

Or it will go to a CA and can settle for 40% on the average.

Bottom line, if you have the 50% go for it. No charge off reported and if the balance is small big woop on a few bucks. If you need the number let me know but I will not post it.

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By the way, I appreciate the welcome. No need to be paranoid. I'm obviously not someone only looking for help on this site...I have learned quite a bit reading posts but really, I just want to help people that are dealing with such scum.

I'm not an attorney but I am in the biz. I also do not work for creditors. I simply feel that life happens and people are obviously here to get help.

My input will always will be sincere and honest.

Again, thank you!

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I did not send a C & D to B of A. I have spoken several times to account reps and only been offered the 80% deal. The reps often sounded inexperienced and unsure how to respond. I therefore am sure the right person could offer the lower % you mentioned.

Please PM me the contact info thay you have. Is there a specific person you have dealt with?

Gettinout

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I need help with Citi.. I have been trying to settle with them but either the counter or simply ignore me. It's been charged off for about 4 years now and it's over 3,000. any suggestion?

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I need help with Citi.. I have been trying to settle with them but either the counter or simply ignore me. It's been charged off for about 4 years now and it's over 3,000. any suggestion?

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I've posted here about a month ago concerning my credit situation. I am currently living in Africa but will be returning to the US fairly soon and will stay anywhere from 2 months to a year before returning to Africa.

I stopped making payments on some of my CCs 2 months ago and on others, 4 months ago. My CCs are AAA, BOA, Chase, Household, Capital One, PayPal, Providian.

If I sold all of my assets right now, I could pay off all of these but would rather avoid that. I do see myself in a position to pay a percentage of the total owed in a few months time.

There's a few other details but I would rather PM or email you with these.

Any help is much appreciated.

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Romeol,

Who is handling the account now and what are you offering to settle for? Was the account sold or is it still owned by Citi?

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Donald,

Your question is clearly related to settling your accounts. I would be more than happy to explain what would need to be done in order to negotiate and pay only a percentage however; before we get into the settlement process, have you done your homework on learning the negative effects of settling debts?

There are definite benefits when settling accounts but I have been advised by members of this forum to fully inform each person of the negative effects as well as other options that may be available to you as an alternative to settlement.

I will start off by saying that most of your creditors will not settle for less than

50% Discover, BofA and Providian. Chase 35%, Household is very tough to deal with but will go as low as 30%. Cap One is another one that will only accept 50% on the norm but are open to hearing your hardship.

So, before you even start thinking about settling debts first take into consideration the negatives of settling debts and will you have approx 50% of the amount you owe? Once you've done your due diligence and still you would like more info on settlements or any topic related I would be more than willing to help.

In your post you mentioned that there was more but would prefer to PM. Since I am a newbie and in the biz and totally under the microscope I would prefer not to reply to any pm's at this point in time. I would not want to jeopardize my membership. So lets keep it as simple as possible for now.

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When negotiating with B of A, what are they looking for when trying to settle for 50%?

Is it relatively easy after the 150 day marK, or do they want documentation and or asset searches?

Any buzzwords to use?

Thanks

Gettinout

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HARDSHIP, HARDSHIP, HARDSHIP.

In my experiences, every creditor will offer the best settlement right on the brink of charge off...150-180 days delinquent. Direct Merchants holds accounts until 210 days and will offer 25% between 180-210 days.

Hardship is most important with every creditor. I've heard that some people are required to fax a copy of a written hardship letter and proposal when dealing with B of A however; it all depends on who you are talking to.

B of A normally does not check credit, assets and so forth like some.

Again, hardship is most important especially with B of A. It has to sound good. Keep in mind that B of A has a blanket settlement of 50%.. Know this and if you're not getting it with one person call again and ask to speak with a manager.

When settling any debt please know that you are saving money but causing a negative effect to your credit that may be irreversible and will indeed effect your credit for several years.

Good luck!

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The last call from B of A resulted in the usual 80% offer. I asked the rep who I would call back to further discuss settlement, she replied she was the one. Since others have stated this, I'm sure there is another level above these people.

One of the reps I spoke with in the past asked if I received the 60% settlement letter they had sent out in bulk. I have not as of yet received this offer. The rep then got nervous as if he had spilled the beans.

What has your experience been with Wells Fargo?

Thanks for the warning about the negative effects of settling. I spent quite a while doing research and decided it is the way to go for me.

I encourage everyone to research all options before diving into any one. Do consult with BK attorneys. I gained much insight from the free consultations. All of them had a very different course of action.

The BK laws change for the worse in two weeks! Do your research now. Ask Ask Ask. That is what this forum is for.

Gettinout

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Wells Fargo is another tough one. I have a formula when settling. First, find out if you are on the line with the person who is going to help you...if the person is arrogant hang up. Don't waste your time. Call back again in a few minutes and ask to speak to a manager. Tell them you just hung up with a rep that appeared very rude and you would like to speak with someone who is professional.

You need to have a good ear. I know within the first 10 seconds if the person is going to give me what I want. I've hung up on people just from hearing their "thank you for calling ..." click!

If you are hearing something ridiculous like 80% and if they are not offering any other options and they are refusing to listen, chances are that the account is not delinquent long enough. Ask what date the account charges off. If it is not within 30 days. Hang up and call back when you are within 30 days of charge off.

If again, you get somone refusing to listen and you are within 30 days hang up and call back or ask to speak to a manager and be aggressive. Some will say "I am a manager" "theres noone else" whatever, hang up and call back and demand to speak to a manager. Explain that you have been calling looking to work out an amicable payment to satisfy your debt

Then go into your hardship and make your offer. Be very clear that this is all the money you have and no resources for anything additional.

DO NOT ENTER YOUR SOCIAL OR ACCOUNT # WHEN YOU ARE PROMPTED WITH THEIR AUTOMATED SERVICE HIT 0#0#. If they see that you have been calling and calling they will think you are full of it and there must be a reason why you need to keep calling in.

Now, Wells Fargo, normally most credit cards will settle for 40%. Wells Fargo has many different products so it is hard to say. Balance transfers,

cash advances, total balance, amount of time you have had the card will weigh heavily. You should have no problem as long as the card is 2 years old or more and no balance transfers or cash advances within the last year and of course, if you haven't charged a plasma television or a Rolex just months before you fell delinquent you should be fine.

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Wells Fargo is the smallest of my debts. They have however seemed to be the most aggresive. At 60 days they sent letters stating they would take appropriate legal action. MBNA was actually quite gracious throughout the process.

Does WF charge off faster than the others?

How do overdraft charges from checking accounts affect possible settlements?

Gettinout

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I am not sure whether I am posting in the right forum, but I need advice with the following situation:

I currently owe close to $5,500 (original CL $5K) on my DISCOVER CC. The account has been closed for about 3-4 yrs by now, but I keep making $100 payments every couple of months when I get tired of the harassing phone calls. Needless to say my balance with them is constantly increasing, since what I can afford to give them is less then what is necessary to offset all the interest, overlimit and late charges.

Would it be better to try and settle this debt and if so, what impact would it have on my credit? (i am currently in low 500's)

I could also pay the entire thing in full if I borrowed the $$, but not sure whether it is wise to lay out this kind of cash in order to improve my already ruined credit.

Thanks for your help!

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Wells Fargo credit cards charge off like the others do...180 days. Normally, with small accounts less than 5k you will get a settlement offer for 40% when you are 150 days behind. If you call in without receiving the letter and you are beyond 150 days there may be a reason why they wouldn't offer the settlement.

WF is strange. I've settled for as low as 20% with them but on others I have a hard time getting 60% with no transfers or advances.

I'm not sure what type of account you are referring to regarding overdraft. If it is a checking account I can not say. I do not accept overdraft on our program. Credit lines on a checking account however are treated the same as a credit card.

WF is definitely settlement friendly. WF is one of the only student loans I accept. They settle for 40%.

Most accounts in excess of 5k or even 3k after charge off for the most part are sent to local counsel for suit. WF is settlement friendly but they don't play with high balances.

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I'm not much of an expert, but can point out a few things,

By paying the $100 every few months your are resetting the statute of limitations on the account. This means they will forever have the right to collect if you keep making sporadic payments and the account will haunt you forever.

Settlement may be a good option. I'm not sure how it will affect your credit score. Probably will take a dive for a while. A settled account should at some time affect your score less than continual lates caused by the sporadic payments.

Payment in full would be the most likely to improve your credit score. Borrowing the money to do it is a setback. I wouldnt recommend sucking a friend or relative into this. Relationships are more important than credit scores.

What other negatives are affecting your score? Once you've decided how to handle the past due account you may have many opportunities to improve your score through credit repair.

Check out the E-books on this sight. You'll need to do your own research to decide what is best for you. Try posting your question as a separate topic in Credit Repair. See what suggestions you get.

Good Luck

Gettinout

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sifxpert,

Thanks for the input.

I'm aware of the effects settling can have on a credit report/rating, but I've heard people talk about also negotiating for a more positive remark.

So I guess my question is whether it is really possible to settle (with most CC's) for 50% or less AND negotiate a very good comment (sorry- I forgot the correct term)? That is ideally what I'm looking for.

The other question I had was about assets. If I have a credit card with a banking institution and as well have an investment with them, is it likely they will look to liquidate that investment in order to pay off the CC? Can other CC's also get information about that investment?

Again, thanks for the advice.

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Donald,

I recently posted a question about bank accounts being raided to collect on a credit card. It is likely if the card issuer is your bank. There is probably a clause in the CC contract which indicates they may do this. Be very careful.

As far as the investment , we didn't discuss this. I'd post that question under a separate topic. Other CCs probably cant do anything to the investment without a judgement of some sort. CC companies dont seem to do many asset searches. If you are dealing with a CA watch out for any sort of improper/illegal tactics.

Perhaps sifxpert can shed some light on the rating of account during settlement. From what I've heard here it is very difficult to get a good rating without leverage such as violations to force their hand. I'm sure it is possible though.

Good luck

Gettinout

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Donald,

First off, Credit Unions are the only instituation who issues credit cards who can lien or raid another account such as a checking, savings, or any other investment or loan. I've heard some pretty horrific things about cred unions but never with any other institution.

I may be wrong here but from my experience's, I've settled for example, a Bank One account for a client and then provided the clients routing and account # to pay the settlement. Well just about every creditor will recieve a pop up with the bank name once the routing number is entered and normally when doing a check over the phone the rep will verify the name of the bank with me ...well to my surprise, I was paying this from the clients bank one checking account. The rep stopped dead in his tracks I think we were equally surprised. He could not do anything about it and from there I had our software show full bank name and routing and account # from then on just in case but I have clients sign on with a b of a credit card and wil also have another loan such as home or car but unless they really want to cross reference they will never find out.

I'm not exactly sure what you mean by investments but creditors only check physical assets such as home and equity. If you just bought a new benz and have tons of equity expect to have a problem. Also, available credit on other open cards. OC's and CA's only check your credit report for the most part.

As far as IRA's, Money Market's, Stocks etc...I've never been questioned on any of these. If the creditor asks if the client has any of the above I say no regardless.

As far as negotiating how the account will be labeled once it is settled is extemely difficult. Actually, it is not, however; I have never been able to get a low settlement such as 30-50% and have it shown as paid in full or even deleted unless the collector is someone I have a very solid relationship with. Meaning I settle very high volume accounts only with this one person consistently every month. Then, I can get favors but otherwise the only way to get something deleted or paid in full is if you settle for 80% if not higher and expect to spend the better part of your afternoon going back and forth to get what you want.

Watch out though!!! I work with many mortgage lenders who come to me to settle accounts or even pay accounts in full who need to get their clients score up to qualify them for a loan. I stopped doing this unless I felt it would be a quick fix because it is very time consuming, the success rate is very low, but what happens most times is that they will even put it in writing "Your account will show as paid in full" but what happens all too often is that it never gets updated.

I've offered to pay accounts in full, no settlement with the simple request of either deleting the account or paid in full no late pays. This is even difficult in some cases.

Botton line, if you do get a favorable remark it will cost you and you will never know for sure what they are telling you is true.

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I have a CC with First National bank of marin. according to my EQ report as of 8/2005 I am 120 days late. I currently own 663.36. I would like to get this deleted. The best way for me is to settle this debt. do you have a contact at this company or know how they settle.

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Thanks sifxpert and Gettinout. I really appreciate all the info and advice.

I do have a few more questions but will be nowhere near an internet connection for the next week-and-a-half. I save these questions for when I return.

Thanks again.

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I need some advice on settling my suit against me with Citibank. I have 4 account totalling 13,000. These were charged off about 2.5 years ago. (In SC the SOL is 3 years BTW) They filed suit about 1.5 years ago. I have been through the doc process and it seems from the many posts I have read on this forum that I will fight a long loosing battle with them. So I guess settlement is in the future for me.

My questions are:

Should I call or write the Attorney?

What is an acceptable amount they will accept?

Should I settle on one account first? One at a time?

What is a example of a good settlement letter?

Should I contact Citibank or go throught the Attorney? The attorney I have found out works for Citibank?

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Nusteem,

Since I am not an attorney please do not place too much stock in my advice on this one...I would post this question on "is their a lawyer in the house"

However; since this case has been open for 1.5 years I do not believe the sol would be considered as leverage for you...its kind of like being saved by the bell.

Anyway, what Citi offers is 80% or full balance over 24 months normally with requiring 25% of the balance as your first payment.

The only way I have been able to avoid this after the client has been served is by proving a medical hardship. Citi requires a doctors note with the doctors letterhead and to verify the phone number...obviously they can not call the doctor and verify if you are a patient or not but they do check to make sur ethe Dr. is legit.

Now, the medical condition must be severe...not you had the flu for a week but something life threatening or at least severe enough that you will require long term follow up preventing you from working etc.

If you can produce something like that then go for 50%, otherwise 80% or 24 months...but do check with someone to go over your specifics of your case first...they may advise you differently....and all of the negotiations must be through the attorney.

I had a client in S.C. who had 3 strokes in 1 year and still Citi would not bend from 80%....these people should be roped up from their testicles and beaten like a pinata!

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