Jump to content

Having problems settling your credit card?


sifxpert
 Share

Recommended Posts

I had a credit card with Bank of America. It was charged off, sent to Frank Hanna, then eventually NCO. The amount I owed was about $1000, but by the time it was 150 days late and charged off it was $1750. When NCO tried to collect, it was up to $4000. I DV'd NCO and it appears that they have dropped it from my credit report. How do I proceed with the OC? Will they negotiate after they've already charged it off and sold the debt? Right now this is the biggest blemish on my credit report and I'd like it removed if possible.

The OC is now NCO if they purchased. Have you tried disputing B of A to get them off? Once a debt is sold its sold. There is no possibility of recall. Sorry.

Link to comment
Share on other sites

Just to clarify...NCO is NOT the OC. The original creditor is and always will be Bank of America.

If B of A sold the debt to NCO then your credit reports should read something like "Written off/ sold to another lender".

If the "sold to another lender" is not included, then perhaps the debt has only been "charged off" (an accounting term that doesn't mean squat to us).

If the debt has been sold, then NCO may a "junk debt buyer" (JDB) or perhaps someone else bought the debt (maybe Frank Hanna) and NCO is working as a CA for them. Either way, NCO must go back to the OC (B of A) for documentation on the debt...anything else is not sufficient.

If the debt has NOT been sold, then perhaps NCO has only been "assigned" to collect the debt...which makes them just another CA.

In any case, regardless of whether NCO is a CA or JDB...use the DV process.

Link to comment
Share on other sites

Hi

Hope you can help

I have 2 accounts I need to work on fast. I have gone throught all the motions on them since Jan 2006, and I am in the process of buying a new house my lender said if I pay these off my rate will be much lower. They are both in the hands of CA's and have been there since 2003.

LVNV:2301.00 Orig Bal: 1796.00 (Sears)

First Resolution: 3294.00 Orig Bal: 1845.00 (Providian)

I was hoping they would eventully be deleted but I can't wait any longer I close on 09/15/06.

Any help is most appreciated!!

Link to comment
Share on other sites

do an online dispute. it would be faster than paying and waiting for the update. besides, you can save yourself money and have them deleted rather than showing paid. of course, if it comes down to it, you can show the lender proof of payment but there are easier and less costly ways of going about it.

Link to comment
Share on other sites

I have disputed at least 6 times. By mail and online , each time comes back verified. I have also DV them at least 6 times

LVNV replied with a generic letter (validation of Debt) saying that they certify and affirm the account was acquired from Sears and further certify and affirm that at the time it was acquired the balance owing was 1796.21...... That was back in 02/06, and I haven't received anything since.

First Resolution replied with a generic letter and a copy of my last statement dated 05/31/03. That was in 06/2006 and have not received anything since...

I wanted to keep fighting these however my lender said to get a better rate they had to show paid on my CR....

Any advise???

If paid I can go from 7.8 to 6.5 rate

Link to comment
Share on other sites

Sifxpert;

I have huge debt with 2 cc's. B of A for $20,000 and MBNA for $30,000. they include medical bills, groceries, you name it. My partner was with out a job for over a year and it really stretched us thin. There is no way I can pay the minimums, plus interest and over limit fees. I do not pay late so I would probably not be offered a settlement unless I just do not pay for 2 or 3 months? And then again if I could settle for 30%, it is still more cash than I can save over those months...unless they offered to split it over 6 months. Thoughts? Thanks

Link to comment
Share on other sites

Although BofA recently purchased MBNA the settlement policy is still different. Wait 150-180 days right before charge off. MBNA sends a letter stating the date the account will charge off . Wait 2-3 days before that date and offer MBNA 10%. Accounts over 30k I usually get as low as 10-15% on the norm. 20-25% is high. They will accept a lump sum down and split the balance over 4-6 months but they are getting tough on the 6 months now. Continue saving money and then settle out BofA but do not tell them you plan to settle until you actually settle.

Link to comment
Share on other sites

Hi

Hope you can help

I have 2 accounts I need to work on fast. I have gone throught all the motions on them since Jan 2006, and I am in the process of buying a new house my lender said if I pay these off my rate will be much lower. They are both in the hands of CA's and have been there since 2003.

LVNV:2301.00 Orig Bal: 1796.00 (Sears)

First Resolution: 3294.00 Orig Bal: 1845.00 (Providian)

I was hoping they would eventully be deleted but I can't wait any longer I close on 09/15/06.

Any help is most appreciated!!

I have disputed at least 6 times. By mail and online , each time comes back verified. I have also DV them at least 6 times

LVNV replied with a generic letter (validation of Debt) saying that they certify and affirm the account was acquired from Sears and further certify and affirm that at the time it was acquired the balance owing was 1796.21...... That was back in 02/06, and I haven't received anything since.

First Resolution replied with a generic letter and a copy of my last statement dated 05/31/03. That was in 06/2006 and have not received anything since...

I wanted to keep fighting these however my lender said to get a better rate they had to show paid on my CR....

Any advise???

If paid I can go from 7.8 to 6.5 rate

Link to comment
Share on other sites

Back from the abyss.

For ten years I had perfect credit.

I paid off three houses and an office building in about three years each.

I had little or no consumer debt and paid cash for most everything.

Bought a fourth house with cash.

Purchased all cars with cash.

Disaster struck around September 11, 2001.

I lost everything and started a slow downward slide that culminated in my walking away from four consumer credit card debts July a year ago. Ten years ago I could have just blown that amount on a vacation, now can't pay it off.

Regions Bank about 4500

MBNA about 4500 - think they have a judgment. can they / will they take funds from my checking?

Chase about 3500. paid through MRS 1600

I just settled with Chase for 1600. Agreement to list "Paid" to Chase.

Citi About 3500 - This is ACS in Escondido. Entered into agreement today.

Agreed with Citi to pay $1600. They state credit report will indicate: "reflect a settled in full account status and zero balance"

Have not contacted MBNA which has a judgment or Regions.

Any advice at all is appreciated.

I now have a good job and other than the debt reflected above no obligations.

Income back up to about 8,000 a month but the creditors do not know that and I am keeping my bank balance low because I have a debit card and it appears through that debit card they can tell what my account balance is. Bank of America Account with a Visa Debit.

Would like to pay this off by Christmas but then what?

Can I build up my cash and buy a house?

On paper for 2006 I look like a low income person ... because just got this job and my income has until now been negligible so could possibly qualify for low income aid in purchasing a house, particularly if my bonus is rolled over into next year.

Lost, lost, lost. I have been sinking for so long I have not even wanted to look at my credit report.

Thanks for any help.

Link to comment
Share on other sites

Just to clarify, this post is owned by sifxpert, who is actually a "debt fixer". He might be able to help negotiate a settlement on those outstanding debts and I'm sure he'll step up if that's possible.

Recognize that your CRs will probably be trashed, and you might wind up paying taxes on any "forgiven" amounts, but if you don't mind paying him a bit, sifxpert might help.

BUT...go to www.annualcreditreports.com and get your free credit reports NOW! You need to make sure there isn't something else hiding there that you'll need to handle.

(As for the "had a successful business, fine home, good credit" story...been there, done that, got the t-shirt, and went out drinking with the band. Welcome to the club. Keep reading on the board here. We can all get through this together.)

Link to comment
Share on other sites

Actually today Citi called. They agreed last month to settle for 1600. Today they told me it had gone into 'refuse to pay' so that would cost me 1900.

I said, fine, I have two more creditors in line and I'll just roll you down to the bottom or maybe I'll just take the 1600 do something for ME with it -- and you can gamble on my not loosing my job and hope I can still pay you after I pay everyone else.

The supervisor came on the line and said if you pay one hundred today we'll take the fifteen hundred next month.

I said okay.

Hope I am doing the right thing.

Really, I just want to buy a house and NEVER use credit again.

Can they really tell what's in my bank account via my debit card?

However, a response to my previous post remains desperately needed on this end.

Link to comment
Share on other sites

You've got the right attitude!

(BTW, make sure you're talking to CitiBank directly and not some rent-a-body collector. Make sure that any deal you make over the phone is documented and that you know ahead of time what the effect will be on your credit reports. Realize that creditors lie just for practice. If it ain't in writing, it didn't happen.)

Link to comment
Share on other sites

I have a letter received via email with the settlement terms and dates.

That is what MRS did and that worked.

Now ACS has sent a letter as well and I quoted the language above.

ACS indicated in letter credit report will: "reflect a settled in full account status and zero balance."

Also I am extermely worried about 1099 ramifications. Is there a way around that?

Link to comment
Share on other sites

Hi

Hope you can help

I have 2 accounts I need to work on fast. I have gone throught all the motions on them since Jan 2006, and I am in the process of buying a new house my lender said if I pay these off my rate will be much lower. They are both in the hands of CA's and have been there since 2003.

LVNV:2301.00 Orig Bal: 1796.00 (Sears)

First Resolution: 3294.00 Orig Bal: 1845.00 (Providian)

I was hoping they would eventully be deleted but I can't wait any longer I close on 09/15/06.

Any help is most appreciated!!

Do you have available funds to settle with? I could most likely help you get approx. 20-30% on each of them. If like PM me and I'll send you my number. Not to sell my services but to offer advise...just to CMA.

-Sif

Link to comment
Share on other sites

Regions Bank about 4500 I'll start off by addressing the two account with possible judgments. You can check your town/city court to see if there is an active judgment, pull a report from all 3. Or if you were served and never went to court, then, yes you have a judgment.

MBNA about 4500 - think they have a judgment. can they / will they take funds from my checking? By pulling your reports you will know if these accounts were sold or assigned. Very important bit of info.

Both of these accounts settlement method differ greatly depnding on status....was it purchased, assigned? more info needed in order to provide you with some good settlement advice....

Chase about 3500. paid through MRS 1600 Excellent.

I just settled with Chase for 1600. Agreement to list "Paid" to Chase. It will still reflect the settlement. Your collector got one over on you...i'm sorry. your account will of course say "$0.00 balance...paid account" "settled for less than full amount" He didn't lie but he did by ommission. Take it on the chin....it takes a set of balls to be honest...something a collector has been trying to scratch all day.

Citi About 3500 - This is ACS in Escondido. Entered into agreement today.

Agreed with Citi to pay $1600. They state credit report will indicate: "reflect a settled in full account status and zero balance" Good job but again, its going to show settled. A CA unless they purchased has no say in how it reports. Its all up to the OC. You were having a blond moment...

Have not contacted MBNA which has a judgment or Regions. Don't contact them either until they contact you unless you were sued by loacal counsel.

Any advice at all is appreciated.

I now have a good job and other than the debt reflected above no obligations.

Income back up to about 8,000 a month but the creditors do not know that and I am keeping my bank balance low because I have a debit card and it appears through that debit card they can tell what my account balance is. Bank of America Account with a Visa Debit.

Would like to pay this off by Christmas but then what?

Can I build up my cash and buy a house? With the way things are going for you that is exactly what you should be working towards. This is temporary. Start reading up on credit repair here and stick around, there is everything you could possible need.

On paper for 2006 I look like a low income person ... Excellent, if and its a big IF you get a 1099 because, again this year after the new law which requires even CA's to iissue 1099's about 10-15% of my clients recieved. Chances are if they are charged off already, you should not get a 1099. I know I know willing its not the law but I simply don't see it happening. Anyway, the fact that yo umade so little will help when its time to file next year. GET AN ACCOUNTANT!!!

Lost, lost, lost. I have been sinking for so long I have not even wanted to look at my credit report.

_Don't be, you're a smart guy, you're getting back on your feet and things take time. Just sit back and look at this as a learning experience both personal and business. It will all come together as long as you utilize the resources of this forum.

Thanks for any help.

Good Luck! -SIF
Link to comment
Share on other sites

So appreciative of your comments.

I was never served -- but I moved and my mail has not always followed me, obviously, I have not always wanted it to follow me. I have retained an attorney to field the calls but she has not contacted me regarding any offers. It is as though once I hired her time froze. She's a bankruptcy atty but we both agreed that I should give it a year and see if I got back on my feet before I filed for such a small amount ... small to her.

I am a girl, actually, not a guy.

Reality check here, I am sending my daughter off to an Ivy League School tomorrow. She's a freshman. I am a single Mom. Her tuition for the YEAR is paid, she has 8,000.00 in her account and she is ready for the time of her life. By the way, that was paid by me not her father.

We've lost a beautiful home, a fat wad of cash, and a nice lifestyle.

Living in an apartment and not a great one. BIG ADJUSTMENT! I tried to create new rituals ... Sunday morning omelettes, Monday night pizza, because that's when it was on sale and you know, it tasted just like Friday night pizza! Tuesday at Popeye's because that's when you get a deal or at Sonic because that's when burgers are half price and picnics at the park. I tried to make it fun but my daughter missed out on some trips with friends and pre-college planned trips for the freshman class. I am sad about that but I did take her to all the Ivies last summer to look at schools (one of the credit card debts I am now paying off.)

BUT - BUT - BUT I have been able to keep her in a private school, keep my chin up, learned to live frugally, and she's been totally cool with it!

If anyone reads this, if anyone is listening, I am so glad I did not totally freak out and pull her out of private school.

I put what money I had there and robbed Peter to pay Paul and prayed for a better day.

I did not make her pay for my mistakes.

Thank you all!!!!!!!!!!!!!!!!

Next Monday, my first day alone, well living alone in twenty-five years, I will pull my credit report and that takes courage, and look forward to this Christmas when the biggest present I have ever received will be to start over again at zero.

But I did it once and I can do it again and I am involved in an incredible business and do see a way to go out on my own in about a year. I can do this. Facing bad credit -- and its $13,000.00 at that -- seems harder to me than building up a business again. Next goal, loose all the weight I gained during this financial turmoil.

More than just your FICO score is impacted. It is truly a living hell to have financial problems. If I do not get the weight off that I have gained in three years .... three years ... I suspect that I will have diminshed my life expectancy.

Link to comment
Share on other sites

Here is the actual letter I sent and items one through four were on the back of the check as well.

I understand they can deposit it with the notation 'under protest'.

Will they, do they? Can I improve on this letter for Citi/ARS?

Enclosed please find a check in the amount of $1650.00 payable to Chase Bank USA NA.

Upon receipt of $1,650.00 and by cashing the check attached hereto it is agreed that:

1. I am released of any further obligation to Chase Bank Usa, N.a. regarding the above referenced account.

2. The account will be notated as paid on all credit reports and there will be no indication that a credit agency and in particular your credit agency was involved.

3. There will be no terms used as a notation other than paid included but not limited to:

A. Collection;

B. Charge off;

C. Other similar terms;

Your cashing of this check indicates your acceptance of these terms which are also included on the back of the check.

You have agreed to furnish to me a zero sum letter indicating this amount is paid and I owe you no further sums.

This check has been sent by United States Mail on this the 17th day of August 2006.

Link to comment
Share on other sites

"I'm a girl actually, not a guy."

You will have to pardon my ignorance ma'am. I responded quite late last night.

In re: to disclosure #2 in your letter:

I'm sorry but I still feel as though they will simply deposit and disregard your disclosure. Of course, by adding the disclosure they are bound to the agreement but do you really want to sue them for breach of contract? A CA does not have control of how the account will report since they are not the creditor. In some cases, they may but, in most I know they have no control.

I would also add "This account will be reported to all the CRA's as paid in full with a $0.00 balance" the "paid in full" not just paid is very important.

Good luck and know that life happens and you made it through a rough patch. It will only make you a stronger person in the end. I went through some very rough times myself but in the end, you can either fall on your face or keep your head up high. It is simply a decision that takes the will to survive.

Link to comment
Share on other sites

Sifxpert do you help with settling with CA's? I have two accounts with Midland credit management that are on my CR and that I'm being charged interest on. There's no doubt that they are my accounts. I'm not really sure what info. you need to find out how you might be able to help me, I'll be happy to post any additional info. for you.

Link to comment
Share on other sites

Yes, I settle any type of unsecured debt. Midland settles any account for 50%. If they are racking up interest I would hit them with a DV until you can settle. The DV will stop the interest until they validate which takes forever if they even do. Midland is known to respond to your DV with a questionnaire. The questionnaire is a scam having you validate the debt. ...so beware.

Link to comment
Share on other sites

Yea Midland shows up on my CR for both of these accounts, nothing on my CR from either original creditor. I am prepared to settle but am a little confused because of the info I've read stating that paying could hurt your CR more than it can help in some cases. The debts are from 2002 & 2003 and waiting seven years for them to drop off is not an option for me thus I want to settle with the best possible outcome for my CR. The amounts owed aren't that much $1942 and $658 last I checked. I want to get this taken care of b/c they are still charging me interest.

Link to comment
Share on other sites

Always dispute with the CRA's prior to paying a penny. Use the 1-2 punch the second round if you can not get it off the first time. If they validate properly, which they will not...but if they do then settle. Calling or even offering to settle will hinder your chances of a full delete which is what you want.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...