brokeanddesparate

citi settlement

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Has anyone have any recent experience settling credit card with citi? i just finished settling with bank of america for 15%, anyone knowwhat to expect with 20,000 from citi?

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Congrats! From what I understand, BOA can be quite difficult to deal with. Citi has been pretty good to deal with when making payment arrangements but I haven't heard a lot about settling with them. Are you dealing directly with OC?

Please keep us posted as your results unfold. If they have sent the debt off to a CA, they may not talk to you. (This was what I found when I tried).

VBC :wink:

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Has anyone have any recent experience settling credit card with citi? i just finished settling with bank of america for 15%, anyone knowwhat to expect with 20,000 from citi?

Hey, that's awesome news about your settlement!!

I have a BoA card I just can't make payments on any more. I will need to settle with them.

I know this is bothersome, but would you mind telling me how you went about it?

Did you just call their customer service hotline? And then whom did you ask for? I read you're supposed to ask for a "Credit Manager". Is that what you did? I'm just looking for a starting point...

Thank you for your time!

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B&D

I just settled 4 different citi accounts over the last 3 months ....

It felt like I was dealing with 4 different banks .... all took alot some effort

citi 1 17 k....... settled at month 5 @ 25% directly with citi.... they were stuck at 45% forever ..... citi likes to dream alot .....

citi 2 13k sears citi .... settled at month 5.5 ... it was sent to CA before charge off .... settled at 20% one payment

citi 3 about 6 k ..... settled right before charge off at 15 % .... felt very lucky on this one ... it was directly with citi still

citi # 4 ..... the big daddy 21k ..... they would not go lower than 40 % all the way till charge off..... I let this one charge off..... and then I bitch slapped the CA .... and got 15 % ..... I even offered 20 % before charge off and they rejected.... this was one payment

Citi is now done !!

You have to play hard ball with them ..... I told them many times

" It was either 15 % or 0 % (chapter 7 )...... take your pick "

I did talk to them alot ..... and they knew my severe hardship

mac

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Additionally, I settled all my BofAs recently ..... 4 accounts ... amounts - about 80-90k total

at 15 % as well ....

They were stuck at 25 % for the longest time....

Then right before charge off .... they went to 20 % .... and I worked them down to

15% .... before charge off

They let me make 3 payments over 93 days .

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Additionally, I settled all my BofAs recently ..... 4 accounts ... amounts - about 80-90k total

at 15 % as well ....

They were stuck at 25 % for the longest time....

Then right before charge off .... they went to 20 % .... and I worked them down to

15% .... before charge off

They let me make 3 payments over 93 days .

did they settle for 15% of your original balance, or did they settle for 15% of the latest balance (including the excessive interest charges, late fees, etc.)?

i'm asking because i really don't want to have to pay taxes (1099-c) on the awful interest/fees accrued after i had to stop paying the minimums...

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all of my settlements were with fees and interest

some banks really rate jack you .... like discover and citi ...

but my 4 bofas did not ???? I dont know why, perhaps they saw that I owed them a great deal of money and they did not rock the boat......

so lets say you have a 10k balance.... after 5 months it may well be 11500 or somewhere close to that....

so my settlement percentages were based on the total balance including fees and interest.

but 15 % is still an excellent settlement .... also you should not have to worry about a 1099 if you are insolvent .... such as me

mac

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all of my settlements were with fees and interest

some banks really rate jack you .... like discover and citi ...

but my 4 bofas did not ???? I dont know why, perhaps they saw that I owed them a great deal of money and they did not rock the boat......

so lets say you have a 10k balance.... after 5 months it may well be 11500 or somewhere close to that....

so my settlement percentages were based on the total balance including fees and interest.

but 15 % is still an excellent settlement .... also you should not have to worry about a 1099 if you are insolvent .... such as me

mac

thanks for the reply; that info helps.

do you have any experience with discover business cards, or capital one?

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Mac,

Congrats! Can you share a little more? I'm curious specifically about the Chiti accounts. How far behind on each of them were you? Were all of them directly with OC or CAs? I don't see them ever selling their accounts and I have one with an attorney trying to collect now for $5600.

Did you just negotiate over the phone directly with them or did you write letters? Just wanting to know where I might start.

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vball

Citi was a tough one.... each one of my accounts were completely different to settle .

I had 1 and my wife had 3 ....

I settled 2 with citi directly before charge off

one at 25% and one at 15%

the other 2 went to a CA ..... one I settled at before charge off at 20% in one payment and one was after charge off at 15 % ....

no rhyme or reason ... but they are done !!

I honestly think that they saw that we had ALOT of unsecured debt and that we were going to file chapter 7 ..... and I told them we would if we did not get a low settlement.

I talked to them 90 % on the phone.

I faxed in hardship letters to the CA's ... so that I could get a better settlement %

with both CA's I settled before the 30 days so I did not have to DV them..... I did say to both of them that if we did not excute a settlement before 30 days that I would DV them and elect arbitration...... maybe that helped ??

I still have about a 5k cap one account to settle

I did settle discover personal card of 17 k for 25% ..... at about 5.5 months late

mac

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Well guys, I'm now officially done!!!:) Just settled my last card with Citi and Thanks to Mac posts I held out and got 15% on my 20K...:)++

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They offered to settle for 70% with 3 months to pay and I would receive a 1099, this was after missing 1 payment, my balance is 18k

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the 1099 is only for forgiven principal, not interest. And you can file a form with your return to have the IRS waive it.

can you explain this a little more? i thought the 1099 would be for the entire amount forgiven (including the excessive interest & late fees)...

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i am under the impression the 1099 i will be getting includes all interest and late fee's, not the smaller amount, if anyone knows different please post. Also if equity in home or any money in 401k or IRA exceeds the forgiven amount, than filing insolvency form with IRS will not do away with 1099 obligation, i would assume committing a federal crime of filing for insolvency falsely would be easily caught by IRS since various early withdrawals from ira also generate paper, and even having ira generates paper with irs, so be careful about trying to absolve 1099 with a insolvency form to irs. Any irs experts out there who want to estimate odds on getting caught falsely filing insolvency? i am an amateur, my guess is 100% chance of jail. Even paying taxes and penalties out of ira is a big savings on a nice 15% settlement, although the taxes due may turn out higher than the settlement amount. If i did not have equity put in home in last 10 years, bankruptcy would have been better. Please write your congressman and senators to try to get ira and 401k early withdrawal penalties forgiven in the economic crisis we are in, plus let taxes be spread over 5 years. They do that for people in federal disaster area's, so why not a break for others, economy is a disaster. tons of taxes and penalties being collected as people take out early to survive in this crummy economy.

Edited by brokeanddesparate

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ok, i have found citi the hardest one to settle, one account 20k. charges off in 7 days, final offer they gave me is 40percent (can't do) or 5 year payments of 350 mo, or 1 payment of 350 to delay charge off by 30 days. The one you let go to CA, how did you get that 15percent settlement? Did you get taken to court? i have always heard settling is harder after charge off. Please give your thoughts.

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