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Having problems settling your credit card?

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What non-FDIC places are you talking about?

Captial One is FDIC. Household is FDIC. So is Bank One, MBNA, BoA, Providian and Chase... They're also regulated by the OCC (Office of the Comptroller of the Currency). CITI, as mentioned in the question is FDIC as well - it's right on the bottom of their webpage:

"Citibank, N.A., Citibank (West), FSB, Citibank, F.S.B., Citibank Texas, N.A. Member FDIC"

Some credit card issuers are "Limited Issue Banks". Although they may not have any branches (ie: you can't walk into a Capital One Bank branch and open a checking account), they do have a bank behind them. Capital One came from the credit card division of Signet Bank in Virginia... they are FDIC, and they are regulated as such.

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Actually, I'm trying to make sense of it all myself. There have been several discussions about it:

http://www.debt-consolidation-credit-repair-service.com/phpBB2/viewtopic.php?t=31795

which links over to:

http://debt-consolidation-credit-repair-service.com/phpBB2/viewtopic.php?t=31671

...the bottom line seems to be, if the CC company is indeed an FDIC insured bank, then they should not only "charge off" at 120-180 days, but also "write off" and stop trying to collect.

They don't.

So as I asked in the other post, how can we use this to our advantage?

As I see it, the only way a CC can continue to charge interest past the 120-180 CO is if they're really not FDIC insured...

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Okay, maybe I see the answer...if you go to

http://www.citigroup.com/citigroup/about/index.htm

...you'll note that CitiBank is listed separately from "Citi Cards". I'm thinking that while CitiBank may be a registered trademark of CitiGroup, its actually Citi Cards that issues the cards. In other words, there a big holding company named CitiGroup that has an FDIC bank in one hand and CC issuing company in another...and are therefore subject to different rules.

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There is still a bank backing them. They are an "Operating Subsidiary of a National Bank" (ie: "Limited Issue Bank") - they are not under a different set of rules...

It seems like you're try to tie the IRS rule into this FDIC rule by assuming there's two different sets of rules for credit cards issuers, and there's just not.

However, notice that even though the FDIC requires them to charge off an account, there is no reference whatsoever to "and then follow IRS guidelines"... that's where their (FDIC, OCC) jurisdiction ends and IRS tax law takes over.

So in other words, the FDIC tells the creditor when they need to charge it off, but does not tell the IRS how to do their job...

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Now I know why I'm not a lawyer. This stuff gives me a headache. And, I sometimes lose track of what we're discussing. Let me try to summarize.

1. The subject keeps coming up when someone asks "why, if the OC has changed my TL to CO, do they keep charging interest". Our answer usually is that CO is not the same as "write off"...it only an accounting term and they are allowed to keep it on their books for some period of time.

2. The FDIC did issue a policy in 1999 that stated that open ended retail credit type accounts, issued by FDIC banks that were delinquent should be classified as either "substandard" or "loss". It is unclear if these rules apply to NON-FDIC banks or subsidiaries. It is also unclear whether these rules are still in effect. (In my googling, I ran across some clarification letters from the FTC and FDIC staff that totally confused me).

3. Those accounts that were considered a "loss" (as in IIB) should be closed and removed from the institituions active accounts. These accounts are "written off" (but still may be resold to a JDB).

4. Those that were classified as "substandard" could remain on the books and continue to collect interest and penalties However, if they do, as of 2005, the IRS has established some guidelines that indicate how long and under what contiditions this could continue. Those guidelines also include provisions for issuing a 1099c to the debtor for any portion "forgiven".

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Okay, just to add further confusion to the issue, it would appear that a given bank can offer both FDIC insured and non-insured products...see...

http://www.fdic.gov/consumers/consumer/information/fdiciorn.html

...which I assume means that a given holding company that happens to own a bank, can also own non-FDIC related operations.

...in that case, I would assume that non-insured products would be non-regulated by the FDIC. Where do credit cards fit?

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who are the accounts with now....I'm sure they have both been sold. You could probably get less than 40% on both. Have you tried the DV process yet?

Who would you DV? I believe that we are to only DV the CAs.

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hendu: No, you use the DV process on anybody other than the OC...and if the OC is reporting or trying to collect an account that you honestly beleive is not yours, you use the DV (slightly modified) on them.

Yes, modified is the perfect word......I got a IIB deleted because i DV'd Service Merchandise. They deleted the entry with no fuss! They even sent me a letter confirming it too!

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I'm new (great site, have been reading for a few days) and have a few bad accounts. Had a rough time, fell way behind on the credit cards and would really like to get these bills paid then work on improving my credit score.

2500 to discover which is now being collected by OSI. After some major hounding, I made a partial payment of 400 in November. I was supposed to receive a letter with a settlement offer for the remainder last month but haven't as of yet. The person I've been talking to for the past few weeks won't send hard copy (said they sent one letter & that was that) regardless of the fact that I haven't received anything. I'm hesitant to send (via check over the phone) any more money until I get something in writing. The settlement keeps changing depending on the persons mood.

3100 to Cap 1 which has been charged off according to a letter I received a few months ago. No clue who will be collecting for them, thought I should be prepared.

1900 to chase that's a few years old as well. I think west asset management is collecting for them

I would appreciate any and all help. Thanks!

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When did they charge-off??

Cap One was charged off in November

Discover & Chase about a year and a half ago

When did you open them?

In 2000

Have the collectors been hounding you and have they listed the entry (collection) on your reports yet?

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They've been calling and I've been screening. If it's an 800 or 877 number, I let the machine pick up. No messages so far (that's strange :?: ) only the name & number on caller id. So far, west management assets, ADK & AFS have called.

I've only spoken with the discover card/OSI people. This is what my cr shows for discover. I made some payments & managed to get the balance down. Most of what's left is late fees and over limit charges.

Balance: $1,436

Date Updated: 01/2006

High Balance: $3,271

Credit Limit: $1,900

Past Due: >$46

Pay Status: >Charged Off as Bad Debt<

Account Type: Revolving Account

Responsibility: Individual Account

Date Opened: 04/1997

Date Closed: 05/2004

Loan Type: Credit Card

Remark: >Profit and loss writeoff<

The accounts are listed as charged off as bad debts and no collection accounts are on my reports. I've had a few pull my info the past year and a half.

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Okay, I have an unsecured charged off card I need help with.

I have a household credit services card that has been charged off and shows date of last activity 08/2004, date of last payment 08/2005.

There is a balance of $6755 on the account with a charge of coded "L" listed from 03/2005 to 11/2005. It also shows as "consumer disputes this account information; Charged Off Account; Account Closed By Credit Grantor" as I have previously disputed it twice. I have also called in and gotten an offer of half the balance and the rest would be charged off around a year ago(February 2005). The last time I called in was about three months ago(November 2005) and the best I could get was $5000 with nothing taken off my credit report. I told the rep. that I wanted the negative info. taken off the report or no deal and she opted for no deal?

I now have the money to pay the entire balance but want to use this leverage to my advantage by getting complete deletion from all the Credit Reporting Agencies. How do I do this? Should I call first or write? If I call or write, what do I say, who do I talk to?

Also, I would like to note that the last couple of payments that were made on this account were done by phone in which I told the rep. I didn't have my bank account number nearby and they recited to me over the phone and asked if this was the one to use. Is this legal for thim to access my account number? Does this give me any leverage?

Currently, I am getting my information from a free experian credit report. Any help with this would be greatly appreciated. I am very lost on what to do. Thank You.

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Thank you both for answering my questions, I really appreciate it :D

dont pay a penny!!! dv them

DV Chase & Cap 1 or DV the collection agencies?

If it's the CA, should I wait until they contact me via mail?

I second that emotion! Don't pay nada! Work with the OC first!

Hope you don't mind more questions ( I have quite a few...ack! ), is it possible that OSI is part of the OC's company? Reason I'm asking is because the money I paid them, OSI, a few months ago was applied and subtracted from the balance on my CR. If that is the case, how do I go about getting a settlement for the remainder and what would be a realistic figure?

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Hope you don't mind more questions ( I have quite a few...ack! ), is it possible that OSI is part of the OC's company? Reason I'm asking is because the money I paid them, OSI, a few months ago was applied and subtracted from the balance on my CR. If that is the case, how do I go about getting a settlement for the remainder and what would be a realistic figure?
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Okay, I am new here. I have a couple of naive questions. What exactly is DV, and how do you begin the settlement process with creditors? Is it better to try and get a home equity loan or something to try and cover your debts?

A

Who are your creditors? Are you current or behind? If behind how far behind?

DV is requesting validation of a debt. Requesting a signed copy of the agreement, statements to show the balance is true and correct etc...you are basically requesting the OC prove this is yours.

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