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Citi PreLitigation Letter received - advice?


jameseiv
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First, I would like to thank everyone for their feedback and help. It has been extremely helpful.

Any advice on what I should do before my account is sent to "prelitigation"?

I am at an impass with Citi. I have offered them about 30% and they will not budge from 45%. I am 152 days past due and my account is scheduled to be sent to "prelitigation" about a week before charge off. The balance is just under $18k.

Now I have gotten a letter today stating the following:

"Unfortunately we have been unable to establish an acceptable arrangement for repayment of the above, blah, blah. Unless such an arrangement is established within 30 calendar days from date of this letter, we will refer your account to an attorney licensed in your state for further collection efforts including a possible lawsuit to obtain a judgement."

If the account is sent to to an attorney, what happens next?

Will I get sued right away?

Does the attorney try and settle also?

Does Citi try and settle right before this point?

Should I call every couple of days to see if they will budge at all?

The CitiCard settlement department would not answer my questions about this and the rep even yawned while talking to me, it was actually hilarious!

Thanks!!!!

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On the one hand, "prelitigation" is one of those words OCs and CAs use to scare you into coughing up money. Sending it to a lawyer for collection is in the same category. Those kind of lawyers are usually just CAs.

On the other hand, $18k is a lot of money...more than enough for them to sue.

So...no real answer for you. Don't agree to something you can't pay. Have you thought about BK?

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The creditor's nuclear option is to sue. The debtor's nuclear option is to compel arbitration, if there's an arbitration clause in the agreement (look it up). If there's not, and you're judgment-proof for a while or are willing to learn to become one for a while, you may still have a nicer settlement down the road, even if the debt becomes a judgment. You do not file BK for being $10K short, since that would bar you from refiling BK for many years, should your debt become serious (6 figures or more).

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The difference between your offer of 30% and their 45% is about $2500. If you put the 30% down, could you pay $100 or $200 a month until the remaining $2500 is paid off? They might accept such an offer.

However, as Willing stated, don't offer something if you're not sure you can follow through.

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All great points and great advice. I don't want to deal with a law firm judging from experiences I read from searching the boards. I have the 30% now so I will have to budget to figure out a scenario. Off to the spreadsheet! I am going to give it a few more days to see if they call back and if not I will call them. Appreciate it!

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