Cap1 not budging on a reasonable payment plan...

[75K_CCdebt]

Hi,I have negotiated with 3 of my 4 cards so far,with one giving me 0% interest and low monthly until its paid ,2 gave me hardship programs for 6 months which will be 0% and will get us current,BUT,Cap1 is way out of league with thier payment plan,on a 20K balance they need minimums of 800/month payments which there is no way we can afford! We are in stage 1 collections(71 days) and after 120 days it goes to another level,whatever that means?

Any experience with Cap1?????? seems they dont want to work with me

[legal_loansharking]

Here is some advice for you. Instead of calling them, send them your offer certified mail in writing. Wait for their response in writing. Keep doing certified letters until you accomplish what you want.

With me, they did not want to help at all, and I just walked away & didnt pay anything. They did sue me, but I countersued them also. My debt was only for 1400.00.

The reason why I am telling you certified, is so that you have a paper trail and in the event you have to walk away, you have sufficient proof to show a judge that you tried to settle the matter reasonably and they declined. THey are more interested in letting this drag on so they continue to collect interest and fees.

[admin]

Cap 1 is known for hanging on to debt until the grave. I think Legal Loanshark is on the right track.

[75K_CCdebt]

thanks guys,the thing is I cant settle with a payment in full,I can only manage to pay about 300 dollars a month,Im a bit concerned of sending a payment at all,should I just send 300 a month and a certified letter stating this is all i can afford?

thank you

[henry1018]

A credit card company's willingness to work with someone must be a function of their current year's accounting or liquid asset holdings. I mean, once you stop paying, they add interest, late fees, and over-limit fees which could easily be $500/month- every month. In my case, a $5000 balance became a $12,500 balance in a matter of months. The bank then sells it off but I'm sure writes off the 12,500 if not more. I argued for hours with the bank's trained monkeys why I was not paying anymore than 5000- which I would pay lump sum to be done with them. But they insisted on another payment of 3000 with-in ten days of the first payment. All this grief because I incured one 30 day late with another creditor. (my credit union which I made arrangements with just so I could stay current with everyone else when I took a $30,000/yr pay cut at work) My rate went from 5% to 28.99% and I told them I would file for bankruptcy before I would willingly pay them that kind of money. I also think it's a calculated play on the bank's part- At the time I had a near 800 credit score and I get the impression from conversations with the monkeys that they gamble you will pay the higher amounts in the name of protecting your credit score.

[75K_CCdebt]

henry,your situation sounds just like ours right now with capitalone!

Do I pay them something? or just wait? I need some opinions,and thats just as i will take them as.

[henry1018]

IMHWorthlessO-- I don't think it will matter what you do if you do anything that deviates from your contractual obligations. I bet they have already decided how to proceed with your account based on their financial picture for 2008. Of course I may be completely wrong.

[legal_loansharking]

I wouldnt send them any money until you have a firm agreement in place. Cap1 will file suit, but you need to cover your bases. The certified letters with a payment arrangement you can afford at this time should suffice, but if they keep denying you, keep sending certified letters.

Worse case, they take you to court, you have shown a good faith effort to repay, they denied all of payment agreements and the judge should throw it out. Judges will chose a consumer over a debt anyday if you can prove your case....certified letters return receipt.

[75K_CCdebt]

ok,so I dont pay anything just yet?

I send a certified letter explaining that I just cannot afford thier demands and my other living expenses together.In the letter I offer to pay 300 dollars a month(what I can afford) until the debt is paid in full?

if so,can you PLEASE,type out a sample letter or one that i can copy? Im not very good at getting anywhere whith my own words. lol

I will hold off on any payments to them until I can hear more here,Id hate to spend money on attorney if I can gain knowledge here,and I will recirculate my knowledge in the future to anyone that is in this situation.

[legal_loansharking]

Their address

Your Name Address

Account Number

Date

Dear CRAP1,

Due to unforseen circumstances I would like to setup a payment agreement on my account. I can only afford to make payments of 300.00 a month. This is all I can afford at this time. If you stop charging interest and fees on this account, it would be greatly appreciated. Currently my balance is XXXXX. I will pay 300.00 a month. In XXXXX months my balance will be paid in full. balance divided by 300.00 a month goes in the last XXXXX.

[75K_CCdebt]

matt,thanks,the 1st letter will be sent tomorow,i expect to be sued,am a bit nervous,but will stay up.

should i just hang up when they call?

[Debt Guy]

The advice you are getting is probably what you want to hear. However, I think it is sorely in need of a reality check.

Speaking as one who has been on both sides of this equation (a career in banking and later a business failure that left me with $300,000 in credit card debt) your situation feels familiar in several perspectives.

Just some thoughts.

First, your existing financial situation is the parameter that defines your options. You can only do what you can do. It makes little difference what the creditor wants or demands if you do not have the ability to make it work. It serves neither you nor your family any good to stress about this. It is what it is. You will live through it. Do your best and that is all you can do. Ignore the rest of the noise as best you can.

It is not realistic that you should expect the creditor to feel sympathy for you (my guess is that you feel little sympathy for the travails of the creditor -- which are myriad these days). Consequently, their conduct will be driven by their needs and not your ability or willingness. It serves no useful purpose to work yourself up over their unwillingness to "meet you halfway" or even their refusal to behave in a manner you believe to be in their best interest.

I have very little confidence in the notion that a documented effort to offer settlements to the creditor will do you much good. Having spent a lot of time in the courtroom I can tell you that the judge may have sympathy for your situation but will rarely "cramdown" the creditor. The hard cold facts are that you and the creditor entered into a contract and apparently you failed to uphold your end of the contract and consequently the creditor is entitled to certain remedies under that contract. The proper venue for a "cramdown" is in bankruptcy court, not civil court.

I don't mean to suggest that such an effort to document will hurt anything -- it is just not likely to be helpful. Don't get your hopes up unrealistically.

Whether you do or do not talk to the creditor when they call does not mean much one way or the other. If talking to them is upsetting, then don't do it. Personally, I would just ignore it until and unless you are in a position to make a proposal that you think might work.

The financial industry is in a world of hurt these days. Normally, one could expect certain creditors to behave in a predicable fashion. For example, Capone almost never sells their charged off debts and the probability of a lawsuit is nigh on to 100%. Whether or not they will continue that pattern is very hard to predict as there is just too much turmoil in the credit markets today. Personally, I hope Capital One crashes into the rocks and dies -- I do not like them and never have. But, even if they crash and burn, some other organization will step into their shoes -- perhaps even the FDIC or the Treasury -- an event that might be a blessing to you as FDIC is slightly more sensitive to public opinion (they are doing a very good job with IndyMac).

If I were you, and based on what I perceive to be your situation, I would try to go slow as long as possible. There is a push in Washington for bankruptcy reform -- most of the discussion today is to give bankruptcy judges the power to rewrite home loans. But, if Congress opens that can of worms, I think there will be a tug of war over a roll back of some of the more onerous elements of the 2005 reform act (which made it more difficult to shed credit card debt) -- maybe something good will come along that will offer you some shelter.

I don't wish anything bad for you -- but I think the advice you are getting is naive.

[legal_loansharking]

I disagree, if you do nothing, you be steamrolled in court by Cap1.

If you show the judge you acted in good faith to try to negotiate a settlement and were denied time and time again the judge may rule in favor of Cap1 but not for the total amount. If anything you can try to get all of the fees removed from the last statement on the acct up until the court date.

The other option, they accept the settlement and work with you.

These judges are normal people just like us. They see what happens on a daily basis. Somebody doing nothing or not showing up is going to lose. Someone who shows up to fight has a chance to win or lessen the blow.

Also, prior to court, you may be able to work it out with the collection attorney. They want their fee paid and it seems that is 95% of what they care about. They work for the default judgment. Other than that, they really dont want to do much else.

[BTO429]

The judge wont make you pay anymore than you can afford. let em sue and tell the judge what you can afford and they wont have a choice but to accept it.

[75K_CCdebt]

Im back and forth right now,bankruptcy or continue my payments on 3 credit cards that worked out a payment plan and wait for Capital One to sue,by then the balance could be double of the 19K original!

I guess Im gonna be making the payments to the 3 cards to keep the agreement without having them on my back too.

Maybe Capital One will just disappear?

[henry1018]

It sounds like you're on the right track- it would be a shame to file BK. Gunny's right, odds are a judge won't make you pay more than you would probably be willing to pay them if they would negotiate with you and they can't get blood from a turnip. The fact that you are able to show the responsible efforts that you have made with your other creditors will probably be a breath of fresh air to the judge. I wish you luck!!

[Denita]

Don't file BK if you can help it. Your situation is now under control except for Cap1. You have handled the other creditors the right way.

[win270]

Hate to High jack but is BK worse than Paid for less or charge off? I mean doesn't BK last for 7 years just as paid for less or charge off?I have been told it is easier to rebuild after BK than CO and PFL.If I would have Bk 6 years ago I would be in much better shape than paying for less I mean now that I have finished paying 3 years ago the bad marks will stay from the time of my last payment because they re aged the debt when I started making payment,Thats another 4 years of these TL's.

"Maybe Capital One will just disappear?"

They never go away in my case they waited 1 month before the 5 year SOL tolled then sued.They charge every penny they legally can.

[Denita]

win270, it depends on the whole situation. In this case the OP had 4 issues, 3 of which he has handled by negotiating zero to low interest and his payments apply to principal. The 4th situation, Cap1, is an issue for sure. But if you file BK on essentially a rouge creditor - he is paying a high price for a long time. If the OP's situation deteriorates or the issues balloon - then maybe a BK would be warranted - but why swat a fly with a hammer???? JMHO

[75K_CCdebt]

Im gonna send certified letters and keep paying,if i get screwed? o well!

the best advice here is to not let it get me to divorce! cuz thats where this stress is going,she blaming me and i blaming her!

[75K_CCdebt]

man,i never imagined divorce and marital bliss at the same time! If Capital One would have made an agreement? I wouldnt be seeing social workers for simple marriage tiffs.