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I owe total $10,800 on my Wells Fargo credit card. My current amount due is $934 on 8/13/21. I didn’t make a full payment in June so part of that is from a prior month. There’s no way I can afford the monthly payments even if I’m caught up because they are still close to $500. Would I be asking to settle the $1000 that’s due 8/13/21 or be asking to try and settle the total amount on the card of $10,800. And if so, what would be the best time to try and ask them for relief or help?
Check my article series on settling a credit card with your original lender starting here: http://consumerrecoverynetwork.com/credit-card-debt-settlement-program/
You will get a better feel for why you should be trying to settle this after around months delinquency or later.
You will also have a better understanding of what to say, when, and why.
Hey Michael, I have 2 Amex cards that we’re both in collections being held by alltran. I just got notified today from Amex that one card with a balance of 12.8 got sent to Nationwide credit inc. and the other in the amount of 3400 got sent to gatestone & co. What is your experience with them both? And target settlements with them. Thank you
When did you stop paying on the AMEX accounts?
October of 2020, I just passed 150 days
In some instances we have been able to get 30%, but more common is closer to 50% with these 2 collection agencies on an AMEX account.
I’ve gradually increased my settle amount offer starting from 20%, but they’re both holding firm at 50%. Is it wise to accept or continue to push for lower. They keep pushing hard for 60 month payment plans and a payment today to stop late fees and reduce apr to 7.99, but I would prefer to settle. I’m tired of speaking to there “supervisors”.
Some of these can just get locked up at 50 percent.
Dealing with them now means you remove the risk of them going to a collection law firm next.
I am trying to remember the settlement process with Capital One that we talked about. I received a letter that one of my accounts is now 6 payments past due, and they are saying the next step is charge off, account closed, and full balance still due. At this point, I am still waiting for them to notify me of legal action and then I reply with a suggestion for a settlement and monthly payments, correct? Or am I missing some stuff?
I would not wait for legal action in this situation at all.
How much is the balance owed to CapOne?
How prepared are you to pay a settlement in the next 30 days?
In our previous conversations, I could have sworn you recommended that I wait the 180-210 days of delinquency before presenting settlement options–which would have been around the time they presented legal action like my Discover card did a few months ago. On the account I’ve mentioned here, the balance is $11k, but I have two other account with Cap One totaling $25k. I’m in no position for a settlement in the next 30 days, and probably not for another year or more.
You had mentioned that I could eventually set some sort of payment structure up with them, and then they would basically accept anything I could pay per month over the few years that the payments would be made toward the ultimate settlement amount. If I’m remembering correctly?
You can set up that settlement with Capital One by proactively calling them to negotiate that when you are just passed charge off (just after 180 days late). That is what I would do.
You do not have to wait for a legal notice to settle an account, virtually ever, though that is how things can happen when we have more accounts to settle than we have money for at a given time.
Please continue to post questions in the comments as you go, and at key inflection points, and when you want to better understand something.
You walked away from past conversations with some very wrong impressions that could prove very costly.
Thank you for the reply. I will continue to post the questions here. And I have two more about the Cap One accounts right now. So, I have three accounts with Cap One. Two are at six months and going into discharge the first week of April. The third account is at four months behind, so two more months until it discharges. Do you suggest that I call into to suggest a settlement plan on the two accounts going into discharge now and wait on the third? Or should I attempt a settlement negotiation on all three in April, even thought the third account will only be at 120 days?
And clarifying a previous point you made in our first conversation: Cap One will probably offer me a settlement over a three year span? And as long as I send them some sort of money each month, they will be satisfied, as long as I pay the remainder of the settlement at the end of the three years?
How long they allow a settlement to stretch out often depends on the balance owed, but they tend to offer payment plans ranging from 3 to 36 months, and I do see them allow you to configure the payments with flexibility to miss a month, but no more than 2 months in a row, and where you can send a lower amount some months, as long as you make it up at the end.
The above is what I see when a professional negotiates, which often translates to you being able to.
No, you would not settle all 3 accounts in April after only 2 have charged off. Settlements on accounts that have not charged off yet are typically only going to allow 3 months payments on the whole settlement amount. This is because of an OCC rule banks follow.
You can get longer than 90 days to pay on charged off accounts only.
Thank you! This has been very helpful. I wouldn’t be opposed to having your team negotiate these settlements for me–to ensure I’m getting it right. But maybe I try for the settlement myself, and if I don’t get what you’ve mentioned here, then maybe I can bring it to you?
Sometimes it works just fine when people try on their own and get stuck, but we can still get outcomes we expect.
Other times things were not handled correctly and we cannot get expected outcomes.
Ideally, if you thin you want help, I would just start off with that.
Got ya. Thank you for clarifying. I would at least like to discuss cost and process of your team handling the negotiations. Is that something you would clarify in these comments, or should I make an appointment to discuss those details with you?
It would be more efficient to talk over your strategy on a phone call. You can schedule the call with me here: https://calendly.com/debtbytes/15min
Michael, am I remembering correctly that you said it would be likely that, if I can find the cash upfront for CapOne, you could potentially negotiate a settlement for me around .05 cents on dollar? If that’s the case, then I might be able to find the money to go that route.
No one really settles for 5 cents on the dollar. Least of all Capital One. I often see settlements with Capital One between 30 and 55 percent of the balance. That is if we catch it before it goes to an attorney for collection.
There are really good long term payment plans on the settlements that will vary depending on how much is owed, so that can help people accept a deal they cannot pay in a lump sum, and still avoid attorney placement for collection.
Michael, you and I had discussed that I can’t file Chapter 7 bankruptcy because I did so in 2015. But what are your thoughts on filing chapter 13? I believe I’m eligible.
Chapter 7 is ideal, while chapter 13 is often least so, but it does have its place.
When we spoke, is it that you do not have a way to settle your debts within the next 2 to 3 years? If that is the case, yes, I would talk to a bankruptcy attorney about chapter 13.
Synchrony bank sold a $30,000 debt to Midland in Nov. of 2019. They have just recently showed up on my credit report. Does that mean anything like that they are getting ready to sue or something? And the last 2 letters that I got from them are in Spanish & I am not hispanic, but I could tell that they were offering 10% off of the balance & this was in Oct. 2020. A year ago, they wouldn’t discuss any kind of settlement but wanted me to make any kind of payment which I did not do. Should I call them now & make a settlement offer or continue to wait? I haven’t talked to anyone there for over a year.