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Any info on settling with HSBC and Discover


dudehelptry
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Does anyone have any recent experience settling with this two creditors? I am about 60 days late on HSBC and 60 on DIscover, and would like to settle. Any contact info, or departments to talk to - what I have been able to get from them - HSBC has short term and long term plans but they want to know income/outcome before proceeding.

Discover flat out right says we dont do settlements. I hinted at it very slightly with them and they refuse to dicsuss any settlements.

The amount of debt with each is pretty high, around 11 K HSBC and 13K Discover

Any advice - and BTW I have read and readed almost every thing in the forum, so please dont say read the forums, I have).

I want to settle to get this over with once and for all.

Thanks in advance.

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Discover does settle. At about three months delinquent they will send a settlement offer to you for 40%. I never called them to talk settlement and my 40% letter came in the mail a few weeks ago as I expected. There may be conditions that trigger the sending of this letter. I can't tell you that they send it out for every delinquent account. It may depend on the amount of the debt and if you are also delinquent with your other creditors. I didn't take the settlement offer. When the deadline for responding passed they sent another letter offering to reactivate my account and to deduct all interest and fees that have been added to the balance since I last payed. Your debt with Discover is 4x the amount I owe. I don't know if you will have a similar experience, but they will settle.

I don't know anything about HSBC.

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Back in 2002 I settled with HBSC for 60%. Hadn't found this site yet, and thought that was a good settlement at the time, but I've learned since that they probably would have gone lower. I calculated the 60% by taking the principle amount owed, tacking on reasonable interest. They agreed, but they did file a 1099-C for the forgiven portion of the debt and I paid income tax on that. Wasn't something I was aware of when settling, so it was a bit of a kick in the teeth.

I have never had a Discover card but I have heard repeatedly that Discover does sue, especially for larger amounts. However, they most likely would settle for much less than the $13K before your court date.

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We sent a letter to Discover asking for reduction explaining our situation.

The gal there recommended that I roll my discover balance to another creditor; since, Discover isn't doing reductions at this time. And she made fun of the Oparah episode where people were recommended to negoiate with the card companies.

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You were talking to the wrong rep. I have negotiated better rates with every card I have ever had. Quoting Oprah probably wasn't the best idea.

The creditors don't care about your situation. They only care if you are paying them or not. If they are not getting paid, they suddenly become very interested in the debtor's situation and amenable to negotiations.

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I settled 2 Discover cards.

One was a collector (after Discover had charged it off). I made a few payments to the collector and then they called me at the end of the month and offered 30% on a 16 K debt. Most people ive talked to since says that is very good for Discover. Only thing I can think of is that I did have a pleasant relationship with the collector and had already paid them $900 before the offer (I know, I know most people do not recommend paying a collector but it seemed to work here).

Second Discover settlement was after they sued. I offered 50% on a 15K debt and they took it and dropped the suit.

If you are only a couple months delinquent, youre a little early to get good deals. Try when you are at 4 or 5 months (chargeoff happens at about 6 months). That is when they seem to give the best deals.

If you cant do it before chargeoff, my experience shows you can do it later.

The credit report after settlement with reflect Pays as Agreed with Settlement in the remarks.

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Does anyone have any recent experience settling with this two creditors? I am about 60 days late on HSBC and 60 on DIscover, and would like to settle. Any contact info, or departments to talk to - what I have been able to get from them - HSBC has short term and long term plans but they want to know income/outcome before proceeding.

Discover flat out right says we dont do settlements. I hinted at it very slightly with them and they refuse to dicsuss any settlements.

The amount of debt with each is pretty high, around 11 K HSBC and 13K Discover

Any advice - and BTW I have read and readed almost every thing in the forum, so please dont say read the forums, I have).

I want to settle to get this over with once and for all.

Thanks in advance.

I'm not sure about Discover, but HSBC worked with us when we were late on our payments.

We paid up what we owed as far as payments and they restored dh's charging privileges. We just made payments and now we have a positive TL out of it. Granted, our balance wasn't high.

If it were me, I'd use some of my income taxes each year to "pay to principle..." or pay something extra each month to go towards principle, rather than try to "settle" for less than I lawfully owe. But than if you're suffering from rising debt I can understand your trying to figure out how to lower it. JMHO. Good luck.

Elyse

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