infoseeker5x5 Posted October 7, 2008 Report Share Posted October 7, 2008 I have a close relative with about $25k in debt to Amex that she can't pay. She has additional smaller debts with other cards and a large amount of student loan debt because she is now finishing grad school.The Amex debt is just over 90 days in default. The collectors state that they are working for Amex, but that they are a subcontractor of some kind. So it is Amex's debt but the collectors are a private company designed to help defaulted card members pay/settle.I have told them that I will pay (myself, not the family member) in return for a release. But I won't pay everything. I have them down to $18k (72% reduction) right now. (1) How far can go with these people? 40% reduction? 50% reduction? More?(2) They keep asking for a "hardship letter"? Does anyone with experience on this have advice?(3) Is there anything that I can do to protect my family member's credit score? What should I ask for? Link to comment Share on other sites More sharing options...
shrinkingvioletssad Posted October 7, 2008 Report Share Posted October 7, 2008 Hi there,About 6 months ago a dear friend of mine had about the same amount owed to Amex. He said they went down to them willing to take 40% settlement if he had a lump sum. Hope that helps. Don't know what he ended up doing. Link to comment Share on other sites More sharing options...
infoseeker5x5 Posted October 7, 2008 Author Report Share Posted October 7, 2008 Vederveder, Thank you very much for your input. I do appreciate it as this is a new experience for me.Does anyone else have any advice, either specific to Amex or more generally with other companies? Link to comment Share on other sites More sharing options...
bingo Posted October 8, 2008 Report Share Posted October 8, 2008 Before you pay, be sure the deal is in writing. Make sure that the unsettled portion will not be sold, transfered or, assigned to any 3rd party debt collector. 1 Link to comment Share on other sites More sharing options...
Recovering Attorney Posted October 17, 2008 Report Share Posted October 17, 2008 If they will take 40% as a lump sum, take it. You can get 3 or 4 payments out of themJust remember, your family member will get a 1099 for the balance. I wouldn't worry about her credit score. You are kind enough to get her out of this mess. Let time and her own efforts handle the FICO Link to comment Share on other sites More sharing options...
Lulu123 Posted October 17, 2008 Report Share Posted October 17, 2008 I have had a little experience with Amex. If you talk to the right people at Amex they will pull the debt back from the CA. I had a settlement offer of 50% with them making payments over about 5 months. Link to comment Share on other sites More sharing options...
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