Charged-off Citi Card, Explanation of my situation

[Crimson Hawk]

Hi to everyone! This is my first post on the boards here, though I've been browsing for about a week and have found a lot of the posts extremely helpful. I haven't found anything that quite matches up to my situation though, and I'm hoping that you all can help.

I'm a college student who has had a Citi credit card since August of 2005. I went to a community college previously and worked at the same time, so I could afford to make the payments on the card without a problem. When I transferred to a bigger school, though, I had no luck finding work. I didn't know what to do about the card, so I did nothing (I know, dumb move). I let the account go six months delinquent and it now currently has a balance of $3,363. It was then charged off recently.

Around the end of April and into May of this year, I was contacted by United Collections Bureau, who threatened me with a deadline: pay by April 27 or my account would go to their legal department. They offered me two options: either pay a settlement in full, which was $2,200, or make payments. The problem with payments, however, was that the first one needed to be almost $1,000. As a college student without a job, I told them neither was feasible. I tried to work with them, but what I mostly got was hung up on. The April 27 deadline came and went. I contacted them again afterwards, and they gave me a new deadline: May 27, or my account would go legal. By now I was convinced they were just using scare tactics, but at the same time, I don't want to be sued by Citi and I want the calls to stop. I want the debt gone.

Fast forward to right now. I am now employed and am bringing in about $300 a week, none of which is committed to anything. On top of my job, I am also being given $2,000 in July. So what can I do to please these people? I have thought about trying to work directly with Citi, because UCB has been very rude and unprofessional to me (they actually violated third party disclosure by calling and telling my mother how much I owed, shame it isn't recorded).

If anyone has any thoughts or ideas, I'd really appreciate it. Thanks for taking the time to read.

[AISLE4]

UCB isn't going to sue you. They are merely the middleman hired by Citi. I wouldn't give them a cent. I love the way they keep moving their deadlines. Been there, done that. After 3-4 months of non-payment to UCB, the account will be bounced back to Citi. It will then likely be tossed to Academy, another collection agency. The folks at UCB are scoundrels. Go to www.budhibbs.com to get info on any collection agency that contacts you.

Ordinarily, when a collection agency contacts you, the plan of action is to send a debt validation request. Sending a DV to a CA working for Citi is not a good idea if you want to stay out of court. Citi will likely sue. Folks here will tell you to send the DV to protect your rights as a consumer, but unless you like the idea of fighting in court, I wouldn't do it.

If your goal is to settle, try to deal with Citi directly. I doubt they'll even talk to you as long as the account is with UCB, BUT if you are very diligent and call Citi weekly after 3 months have passed since UCB got the account, you might be able to catch Citi with the account before they send it on to the next collection agency.

UCB will do everything they can think of to make you squirm. They'll call your first grade teacher if they can find her. Next time they call talk about anything but your debt. Tell them you got a new fish and can't think of a name. Ask if they have any ideas.

Keep records of their violations. The violations add up fast with UCB. Record the phone calls. Many of their collectors go off script if you start asking questions. Instead of saying the account will be moved to the legal department if you don't pay, they will eventually tell you that they will sue you if they don't have a payment by such and such a date. That's a viloation.They have no cause to sue. They are not a party to your contract with Citi.

[willingtocope]

Sending a DV to a CA working for Citi is not a good idea if you want to stay out of court. Citi will likely sue.

Again, we have no evidence this is true....

[AISLE4]

There have been at least a few examples of Citi suing when getting the DV request since the issue became a topic here. I know anecdotal evidence doesn't mean it is the policy of Citi, but I thought the debtor who started this thread might want to know about it. It's his choice.

There is a thread here started within the last week or so by a debtor who got sued immediately after a DV was sent to a CA working for Citi. You might want to look for that thread and talk directly with that person.

[willingtocope]

There have been at least a few examples of Citi suing when getting the DV request since the issue became a topic here. I know anecdotal evidence doesn't mean it is the policy of Citi,

Honestly, I've been trying to find examples one way or the other...there are none. And, all the "anecdotal" evidence seems to have come from a "debt fixer" who has a contract/contact with Citi and was therefore trying to drum up business for himself.

There is a thread here started within the last week or so by a debtor who got sued immediately after a DV was sent to a CA working for Citi. You might want to look for that thread and talk directly with that person.

Yep. Found that one already, and posted the same questions there.

[Crimson Hawk]

It could just be a difference between collection agencies, but there could be some legitimacy to Citi suing after receiving a DV. I read a thread in the legal section posted by someone in a very similar situation to myself. The last payment was even made in the same month, October 2006. The difference between us, however, is that my account is still in the hands of UCB. I sent no DV letters. He sent several DV letters and is now being sued.