ImaBird Posted January 17, 2008 Report Share Posted January 17, 2008 We have a business credit card that my husband's name is on. (We own the business.)We're now being called by FIA Card Services because we have now gone a few months without paying it. We owe $4,800 on it.We don't have the cash to settle; however, we might in a month or two.Two questions:(1) Has anyone ever settled with this company before? Can you give advice? Should I try to settle at all? I read that not settling with them can be bad news...(2) If I should settle with them, is there any way to stall them until we come up with the cash?Thanks for any input! Link to comment Share on other sites More sharing options...
willingtocope Posted January 17, 2008 Report Share Posted January 17, 2008 First...because its "business" credit the FDCPA doesn't apply...But, I'd suggest you call BofA directly and talk to them (ignore the collector). You may have to work your way up the food chain to get past the phone jockeys. Tell them you intend to pay...maybe even send in a payment? (Don't do that over the phone...send a company check). Link to comment Share on other sites More sharing options...
ImaBird Posted January 17, 2008 Author Report Share Posted January 17, 2008 Okay, that's good advice... but here's a catch. The company that this card served for is dissolving. Our other option would probably be bankrupting the company. Do you think that they would settle for less if we told them that? Link to comment Share on other sites More sharing options...
willingtocope Posted January 17, 2008 Report Share Posted January 17, 2008 If the company was incorporated...and if you guys didn't personally gurantee the card...the BK'ing the company would be a good idea. But, you'll need to get that done quickly...and, you can let your BK attorney tell them.On the other hand, if it is a personal guranteed card, then closing down the company isn't going to protect you personally from this. And, if you tell them the company's going away, they make get more agressive in coming after you. No easy answers, I'm afraid. In my experience anyway, CCs are not quite as willing to "settle for less than the full amount" when its a "business" card. They know the personal gurantee can let them come after your assets. Link to comment Share on other sites More sharing options...
ImaBird Posted January 17, 2008 Author Report Share Posted January 17, 2008 Ha ha ha! We don't have any assets that they can take!It's an LLC. We opened the account so long ago, I don't remember if he personally backed it or not. How can I find out? Link to comment Share on other sites More sharing options...
bubbaboo Posted January 17, 2008 Report Share Posted January 17, 2008 I thought FIA was part of BOA, not an outside collector. Link to comment Share on other sites More sharing options...
willingtocope Posted January 18, 2008 Report Share Posted January 18, 2008 It's an LLC. We opened the account so long ago, I don't remember if he personally backed it or not. How can I find out?The only sure ways are 1. is it being reported on your personal credit reports? and 2. call the OC...tell them you'd like to work out payment for your company and see what they say.I do believe FIA is the internal collector for BofA...but again, because its a "businees" account", it doesn't matter much. FIA can be as nasty as they like because the FDCPA doesn't apply. Link to comment Share on other sites More sharing options...
parsoc Posted January 20, 2008 Report Share Posted January 20, 2008 I believe FIA is the internal collections for BoA; my personal experience with them is that they were willing to settle with us and offered several times..lower interest, etc. We were with a debt settlement company (American Financial Services) which negotiated a settlement of $3000 on a $10,000. We paid on it a couple of months but then decided to go the Chpt. 7 route. When they were advised of us dropping out of AFS they were still willing to settle...it was usually the same person who called, fairly persistent rather than aggressive but not awful. If they were our only debt I would have continued to settle...hopefully that helps. Link to comment Share on other sites More sharing options...
ImaBird Posted January 21, 2008 Author Report Share Posted January 21, 2008 I think that this card is guaranteed by my husband... still not exactly sure... waiting for a copy of his CR...What if I wrote a letter stating that we are currently obtaining legal counsel regarding both business and personal bankruptcies, but that we may consider settling... and then making an offer? Would that be unwise? Link to comment Share on other sites More sharing options...
willingtocope Posted January 21, 2008 Report Share Posted January 21, 2008 Its really tough to know for sure. Sometimes even mentioning the B-word makes them rush to court to grab what they can. And, like most things CCs do, it has little to do with you or your personal situation. Its more of a "policy de jour" of the current management. Really hard to predict. Link to comment Share on other sites More sharing options...
ImaBird Posted January 21, 2008 Author Report Share Posted January 21, 2008 Okay. So that leaves me with no idea what to do... Anyone had any experience with a similar situation? Link to comment Share on other sites More sharing options...
willingtocope Posted January 21, 2008 Report Share Posted January 21, 2008 Well, here's the thing. If you are indeed thinking about BK...and you do settle with these people...and then you really do need to a BK...the BK trustee may turn around and want the money back from them.So...first things first. See if its being reported on your personal credit reports. If it is, go see a BK lawyer or two and get their advice.If its not, then call the OC, ask for their hardship department, and see what the "business" can work out. (Another thought (your choice) is if its not personally gurantee, then just BK the business. The debt goes away when the business does). Link to comment Share on other sites More sharing options...
ImaBird Posted January 23, 2008 Author Report Share Posted January 23, 2008 Okay, I just pulled my husbands CR, like willingtocope suggested, and our business debt is not on there, which leads me to believe that he did not personally guarantee the credit card.So at this point, without the $1200 to file bankruptcy, and without the ability to pay the debt, I suppose I'm out of options... Link to comment Share on other sites More sharing options...
willingtocope Posted January 23, 2008 Report Share Posted January 23, 2008 The good thing about closing down a business is that you really don't have to BK it. You can just stop doing business. There are probably some state forms you have to file and you still have to send in your final income tax forms, but, unlike a personal BK...there's no real incentive to "start over".That doesn't really mean the debts will just go away, but, they may not be collectable from you personally. If the debts are sizable, the creditor may try to seize company assets and the like, but, you might be okay.At this point, I'd suggest you go talk with a couple of BK lawyers...most will give you a free consulation...and get some legal advice on where to go from here. Link to comment Share on other sites More sharing options...
ImaBird Posted January 23, 2008 Author Report Share Posted January 23, 2008 Since I'm not 100% positive that my DH didn't personally guarantee this card...Call me paranoid, but is there any chance that BofA isn't reporting to his personal CR to "trick" us, so that if we do close up shop for good they can attack us personally? Link to comment Share on other sites More sharing options...
willingtocope Posted January 23, 2008 Report Share Posted January 23, 2008 Technically, if he did personally gurantee it, it doesn't become personal...and therefore won't show up on his reports...until they've decided that the company defaulted. I don't think they're trying to trick you or anything...they're probably just waiting to see what happens. Link to comment Share on other sites More sharing options...
ImaBird Posted January 23, 2008 Author Report Share Posted January 23, 2008 So basically, if he did guarantee it, it could take a long time to show up on his CR, but it still could, and they can still come after him for the money. And sue him. And probably whatever else they want.So even though they would then be coming after him personally, the FDCPA still doesn't apply? Link to comment Share on other sites More sharing options...
willingtocope Posted January 23, 2008 Report Share Posted January 23, 2008 The FDCPA doesn't apply to "business" related debt. The FCRA might once its on his personal reports.However, when I had CAs calling me about personally guarnteed "business" CCs, I was able to scare some of them away by claiming that it did. (They don't know any better than we do).And, yes, all this may take awhile. Its probably not going away. If you do come up with the money in the next couple months, you'd be wise to contact the OC and see what you can arrange. Link to comment Share on other sites More sharing options...
ImaBird Posted January 23, 2008 Author Report Share Posted January 23, 2008 Thank you, willingtocope, you've been a HUGE help! Link to comment Share on other sites More sharing options...
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