CC assigned debt to CA Question

[loose tooth]

I owe 14k to cap one. It has been assigned to a collection agency.

I called cap one but was connected immediately to this CA called Total Debt Management.

Tried to get me to settle for 13k. Told them I couldn't. If I had that kind of money, the debt would be paid off (or close to) That's no settlement.

My minimum pmt ot get me out of collections is 2k.

They told me that if I gave them 5k that the interest charge would go down to 3%. Told them I wanted a fax on cap one letterhead stating this. The rep who "sounded nice" was headed out the door and told me she would fax it over the next day. This other dood came on the phone asking me for bank info. What the f----? (Excuse my language) They pushed me and pushed me for bank info. Told me legal action was starting if I didn't. Of course I am embarrassed to say that I gave it to them. I am such a pushover. I did call my bank to see if I can stop pmt. I can, thank God, because I did give them a check #.

First of all, how can a CA negotiate interest rates for the OC. The rep did tell me she had been working for cap one for quite a few years. Is this really collections or is it really crap one.

Needless to say, I am still waiting for my fax about 3% APR. Called my rep yesterday and interestingly enough she was gone. Supposed to be there today. I will call. If I don't get that fax, I will stop pmt and just send cap one a check for the minimum owed. Still plenty of time before last due date.

What a learning experience this all is? I don't lie. I don't. And I am so niave, I don't expect others to lie either. It is so maddening.

Any advice?

Why would they offer a 3% apr for 5k? As a CA can they do this?

[AISLE4]

You're doing this all wrong. I think I suggested in answer to a PM you sent to me that you DV the collection agency. Your account has not charged off. The collection agency after receiving the DV would have bounced the account back to Cap1, and then Cap1 would have sent it out to another CA, where the process starts again. If after reading this board for a couple weeks, as I know you have, you actually gave the CA your banking info during a phone conversation, it's VERY CLEAR that YOU should never talk on the phone to these people. Mail or fax only.

Why are you giving them 2K to get your account out of collections? You're trying to settle; you want your account in collections. Now that they know or suspect they can browbeat you into handing over money, your goal to settle is compromised. The ideal plan of action is to make them think you are penniless and surviving on rice and beans and will have to suffer enormously to come up with 40-50% to settle.

[loose tooth]

I thank you for all of your advice, aisle 4. I am not strong like you. I am a pushover and scared. I don't lack in common sense like that paralegal said about me in one of his/her posts. Quite the opposite, actually. I think to much about things. Sometimes, I wish I was a dingbat. Then I wouldn't care and I wouldn't try to disect things so much. At one time, my credit report was so important to me. I never ever had a missed pmt. Never. Now it is shot. I have lates and settlements on my cr. So, I move on to the credit repair section.

Quiet honestly, my nerves are shot. I can't deal w/ this anymore. These damn credit card companies have stolen my joy for long enough. My joy belongs to my family. My mind has been a million miles away for quite sometime now. I have been missing out on the special little moments in life all for what? Worrying about my damn credit report and how I was going to deal w/ these cc. The possibility of bk.

I feel I have done well, as I have gotten rid of and settled 60k of cc debt. The other cc didn't act like crap one. The others wanted to settle. I now owe the good old IRS enough money. Lots of money. That's ok though. The amt. I settled for is gone.

I don't have the nerves or energy to deal w/ CAs and charge offs and the possibility of getting sued. I am tired. My intent was to call cap one directly to see if I could work something out w/ them to get things on track. I was connected to the CA. So I did the stupid thing and I spoke w/ them. I broke down.

With all the debt I have settled, DH and I are in a better place. I am thankful to the companies who did settle w/ us, because it would have been bk for sure. The settlements have allowed us to keep our business.

So, I will pay cap one. Pay them off as fast as I can to get them out of my life.

And I will say goodbye to credit cards. They are not a place to go. I have learned a valuable lesson, a lesson to pass on to my children.

You know, my dad in all his 62 years has never ever had a credit card. Never!! He always made it. Made ends meet. We never had the extras, but he didn't have the credit card bills either.

I must say, too, that the phone isn't ringing like it used to. It is quiet. A nice peace. It has been ringing off the hook, every 15 mins to half hour for the past 7 months. Thank God for caller ID. It is pretty bad when my 3 year old notices that I don't answer the phone she looks at me and says "Credit card, Mama?" She doesn't deserve to bear a part of my stress.

So, that's my story. I am sure everyone's story is similar to mine. It is nice knowing that I am not the only one dealing w/ this crap.

Thanks to everyone who has given me advice. Aisle 4, my nerves got the best of me. I am sorry.

[MadinKS]

They pushed me and pushed me for bank info. Told me legal action was starting if I didn't.

That sounds like a border-line violation of the FDCPA to me. If you read

§ 807. False or misleading representations [15 USC 1692e]

(4) The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person unless such action is lawful and the debt collector or creditor intends to take such action.

Does the CA intend to take such action? Maybe, maybe not. But he implied and scared you into payment didn't he. I think that could be construed as implication. But if you are going to give into these A$$CLOWNS then no amount of advice here is going to help because it sounds like your quitting before you get started. You can't let it get you down and disheartened. It's a long war, with many battles and if you win enough battles you win the war! Good luck in making your decisions.

[AISLE4]

Sorry if my tone was a little harsh. You've done well. You've settled a lot of accounts. you are down to the last couple and the most difficult. Cap1 and Citi play hardball, but it's mostly hot air. They will settle. It's very important if you do continue to talk with them on the phone to give yourself a script before making the call. Plot out points you want to discuss. If the conversations diverge onto a path that you don't want to take, and you're having a problem getting it back where you want it, there is a great technique you can use: hang up. They are trained to push your buttons. I have found that the men are much more aggressive than the women. If I'm calling a CA and a man picks up, I can tell within two sentences if I want to talk with him. If not, I hang up and call back. Cap1 will definitely do 50%. I'd call and offer that, if you can afford it, and don't even engage in conversation about anything except a 50% settlement. If they don't want to talk about 50%, hang up. When it gets to the point that they are about to write off the debt, they will take your offer. Find out when the account will charge off. Starting a few weeks bore the account charges off, call them once a week to offer 50%. They'll probably continue to say no until a few days before charge off. I know there has been a lot of talk here about the charge off date having little to do with reaching a settlement. I have found the opposite to be true. My creditors have all scrambled to settle before they charged off the debts.