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You can ask just about any debt and credit related question here and get a dedicated reply by email. This is not published anywhere on the site. Sometimes I reply with questions of my own before I can offer actionable feedback.
Michael,
I talked to you early this week regarding my brother. Very informative conversation. Much appreciated. But we were time limited, and i have more questions.
If you recall, my brother was snared in a Government Impersonation Fraud — caller claimed to be FBI and induced my brother to use his AMEX card (as well as cash and an advance from Chase) to buy gift cards. AMEX has closed their investigation and just this week notified him they would be closing the account on the 21st of this month and we should call them ‘tout de suite’. Can you tell me what happens when they do that? Does it effect his other cards? He has two where the debts are reasonable and being worked off that he would like to keep. Will his limits and/or interest rates be changed?
We have had no luck in talking to AMEX and i think we may need to go the route of having someone negotiate for us. In the meantime, do we contact AMEX before this coming Wednesday? Should we have a lawyer at our disposal? I’ve talked to someone, and as you noted to me, their fee would be 20% of the debt(s) itself. At the moment its $21,700 for the AMEX card — that includes interest and member fees; it was initially $20,300 — and $8500 for the card with Chase. $6000 is a lot of money to have added to the debt. We are considering going to a Chase Bank and trying to negotiate on our own, but…
As senior citizens, after my near death from a brain mass and the subsequent brain surgery i am no longer bring in any income. And my brother, who has a bad case of diverticulitis, is approaching retirement. Though he makes good money `when’ he works, living here in NYCwe are tight to the vest. We are however prepared to come up with an offer to pay up to 50-60% of the debts (if that can be arranged) in a lump settlement, but so far no one is talking to us without telling us they don’t negotiate.
I am going to try and schedule a call with you. We are open to all suggestions.
Thanks ever so much,
rich
Hi Rich – I am replying to your direct email instead of this comment, and am going to delete your last name from your comment. I can help you. We can talk more about that on our next call.
They said I had talked to somebody in November and said that I would pay the debt. I never did that. Not that I could remember anyway.
My question to you is, since I have been served, what is the best way to approach handling this? My thoughts were to obviously respond (don’t know exactly what to say), but also think I could settle for much less with them since I was paying over 30% interest and have given them $9,560.77 in interest alone in 2023 & 2024. Should I try to settle directly with Zwicker or get in front of a judge? Any advice is appreciated.
I would suggest scheduling a call with me here: https://calendly.com/debtbytes/15min
I can offer actionable feedback when I have several of my own questions answered about your situation.
Such a helpful resource! It’s reassuring to know there’s expert guidance available for navigating debt issues—definitely worth taking advantage of.
I was served a lawsuit from Zwicker and Associates on behalf of US Bank for 7k of Credit Card Debt in NYC. Should I call them directly to make a settlement? Can i still call US Bank to make a settlement? I am being advised also to ask for arbitration and they probably wont do that and than have case dismissed. This is time sensitive thanks!
You can call US Bank, but they will direct you to Zwicker for anything related to this account.
Find out if your bank has an arbitration clause. If they do, getting this moved to an arbitration forum is possible. You have to do it the right way.
I would not say that moving to an arbitration setting out of the court is a lock for dismissal. It is not as effective a strategy as it once was, but worth a shot if you have no funds to settle with, or want to try.
Settling with Zwicker is common, and I find them to be one of the more reasonable collection law firms.
Al says
Thanks Michael
I appreciate the quick informative response to my question on the debt collection process.
I just learned that Amex turned my business account over to ARSI. I reached out to ARSI and was responded to by Vinci Law with two settlement options for my $20,300 debt.
12 Month Payment Plan of approximately $1691.82
24 Month Payment Plan of approximately $845.91
I can’t afford either of these. Any advice on how to approach negotiations? Specific wording and amounts/terms to request would be very appreciated. Thank you!
I suggest getting help in this situation. You can schedule a call with me to talk about how that may work here: https://calendly.com/debtbytes/15min
Hello Michael, Thank you so much for what you do, it is appreciated. I have been reading /learning on your website, for 5 hours now.
I have Wells Fargo 11,000, Tally Credit Line $6,77 CareCredit Vet $6,500 (I adopted/rescued 4 pets over 10 years and I cannot afford them, but I do it anyway. They are all older now and have medical needs, Medicines, Surgeries.)
I can’t live this way anymore, I am flat broke. I have carried this debt for over 8 years and am getting nowhere. I don’t make enough money, and live on my own in an apartment that is way too high for me alone. I Can’t get roommate because no one wants to live with 4 animals.
My Auto is worth $17,000 and I owe $3,00 more on it. This is holding me back from a Chapter 7
Please can you help me? What should I do?
Thank you.
I would suggest scheduling a call with me to talk more about your alternatives. There is too much to cover in this situation to do it justice in a comment exchange. You can schedule using the get help tab at the top of the page.
Hi, Michael, I have 5 charged off Citi credit cards, 4 of them I made settlement directly with Citi Recovery Department for around 35%. The last one for $19300 didn’t accept my 35% settlement offer, they countered at 50%, which I didn’t accept it and today I received an email from Citi that it was referred to Client Services Inc. I spoke with Client Services Inc and they offered me 35% settlement (i can accept it)if I made my payment within 2 days. Can you please advise me how to make this settlement correctly? It is my first time dealing with collection agency. Should I tell them to send me settlement confirmation letter first? What is the best way to accept this offer .Client Services agent insisted for paymnet to be made by the phone, she told me she will send me an email with settlement offer, but I haven’t received it yet.She also told me that Client Services Inc is not the owner of the debt, that the Citi still is and after I made settlement payment they will send it back to Citi and Citi will update my credit report. What can you tell me about Client Services Inc? Are they telling true ? Is it safe to give them my account numbers for payment ? I read some of the Collection Agency can drain your account, that they lie and they will just take your money and account wont be settled.
Thank you for your answer.
Here are some of the things you want to look for in a settlement letter. Getting the letter in a PDF via email is normal.
Client Services regularly collects on Citibank accounts and it is common to reach settlements with them. I would have no problem paying them over the phone if I had my settlement agreement in writing first, and the deal met my goals.
Hi Micheal, I’m alumni of the now defunct Tribeca Flashpoint Academy/College in Chicago with approx $50,000 in federal loans. I attended because they had modern facilities, boasted their strong job placement numbers, and gave the impression that they were very selective about the interview and admission process. From what I understand they also claimed they were accreddited which I have since found out was either a lie or they lost it at some point. I’m now in a situation where I can’t continue my degree because my transfer credits and former college does not exist. Additionally I have testimony/reviews of dozens of other students with similar stories .
I suggest speaking with an experienced student loan borrower defense attorney in your state. There are options for you and others to explore.
Hi Michael,
On January 12, 2023 I was alerted about changes in my credit report, and when I checked I saw that my score had decreased by 137 points. This was due to my Macy’s card being newly reported as delinquent in the form of 30-day late payment. The total amount is $269.
On January 13th, I called Macy’s (as the debt is still with Macy’s and not sold yet) credit department to speak with an agent to see if I could get the late report removed from my credit reports. I made the minimum payment ($107.11) that was required for my account to become current again with the agent, and she said that I would need to wait 72 hours to call back to see if the late marks could be removed.
Today, January 17th, I called back to check on the marks being removed since the payment has posted and my account is now current. Unfortunately, I was told that they aren’t able to remove the late payment marks. I actually called and spoke to several different reps, but each told me the same unfortunate news. The last rep I spoke with said that they had submitted a dispute to the credit bureaus, so I would need to see if the credit bureaus, themselves, were able to remove the marks from the reports. I’m still a bit confused about this, as I don’t know why/how the credit bureaus would have more power to remove the marks than the creditor itself.
After speaking with the rep today, I actually went ahead and just paid off the rest of the balance on my card, so I now owe $0. I’m not sure if this was worth it or not.
Is there any advice you can offer that can possibly help these late marks to be removed from my credit reports? A 137 points drop is a huge hit to my score and I hate that it can be stuck on the reports for seven years—especially since I now owe $0 after today’s payment. I really want to get this info off my reports and my credit score back in good standing.
I appreciate your assistance with this matter and hope to hear back from you soon.
Best,
Quelly
I do not understand Citibank saying they sent a dispute to the bureaus either. It may just be the rep using a term that they assumed would be more relatable to you.
Furnishers to the credit bureaus can send corrections. Let’s see what happens with what they say they have done and go from there. Please post an update.
I see similar situations to yours not result in the removal of an accurate negative. And if that is the case with your situation, a 30 day late takes a while to become stale on your credit reports, but it will, and your scores will recover.
Thanks for replying, Michael. Yes, I will wait to see what/if anything happens and keep you posted.
Best,
Quelly
Hi Michael!
I have two separate personal loan accounts with Lending Club that are pending for charge off. As of today I’m on my 127 days in delinquency on each account. I have not been able to make payments due to cuts on my income. I called Lending Club today and told them that I simply won’t be able to pay the full monthly payment amount on each account ($365.59 min pay + $616.58 min pay = $982.17 between both accounts every month), but that I was willing/able to pay at least some portion ($150 on each account) every month. The representative told me, “If you schedule at least 5 payments online through your account, we might be able to stop the accounts to be charge off. However, the system is not allowing me to submit a lower payment. She told me, that if that happened, that I needed to call back and have a representative do it for me. But it seems to me this is to vague of a process, and I don’t want to risk getting myself deeper in trouble or in debt with all the late fees and them still reporting delinquency to my credit report.
So, my question is: How can I negotiate (if possible) a lower payment plan/interest rate, without having these accounts be charge off? or at least, how can I negotiate a combined balances payment plan? I don’t have the funds to settle, so my only option is to pay back little by little until I get myself back on track.
Any help, suggestions, will be much appreciate it.
Thank you so much!
From a credit score angle, I typically see little point to trying to get 4 month late accounts on some type of temporary monthly payments. It does not undo the existing credit damage.
I favor settlements with monthly payments in this situation. The more time you need to make payments on the settlements (more than say 90 days), the more you embrace the charge off as a means to get you to a settlement you can pay over a longer period of time.
Go here to schedule a debt consultation call with me to talk strategy.
Hi Michael,
I just received a notification that Lnvn is reporting on my credit for a navy Federal credit card that is from 2019. My questions is what does the negotiation process look like for this company.
LVNV is far more aggressive than Navy Federal. I often suggest getting help with a debt buyer like this. You can schedule a call with me to talk strategy here: https://calendly.com/debtbytes/15min
Hi Michael. I had a credit card with Citi Bank (Costco) with a $6.5k limit (28% interest…I know..) that defaulted into collections when I lost my job and went through a separation with my wife during the pandemic. I had other debt at that time, but I couldn’t keep up with everything, so I chose to pay other debt over this and it went into collections (Cavalry SPV I, LLC). It has been there for over a year. I am working now and trying to catch back up. I just received a letter from Gurstel Law Firm saying they are trying to collect a debt I owe to Cavalry and asking to contact them by December 7th, 2022. The total amount listed now is $9.1k. I can’t afford to pay that. I may be able to find a way to get $3k… is that even something that will be entertained now that a law firm is involved? My goal is to settle;I do not want this lingering over me any longer.
Gurstel is tough to settle with for that kind of reduction. I recommend getting some help on this. You can schedule a call with me using the box you see just above the comments here.
Hi Michael. I watched some of your youtube videos about how to negotiating debt and talking to collectors and being honest about your situation and the struggles that you into this situation.
I spoke to an agent at Gurstel about settling the debt I have. I originally said I could pay roughly $2k, then he said they would settle for $7800. I explained my situation and told him that amount wasn’t possible, but I would see what other options I have. I called back the next day saying I could pay $4100 (roughly 45% of the debt) and he said that amount was approved to settle.
I asked what the next steps are and he said I could go on the website and make a payment there. He said to not be alarmed when I log in and see the original amount, but to just make the payment that was approved and they would send a letter to me afterwards saying it was settled.
I want to be trusting and have this resolved, but I’m skeptical that my lump sum payment will just be used towards the total amount and they will still try to collect the remainder.
I asked if I could have that in writing and he said he would have an email sent to me (from Barracuda) in the next 24-48 hours.
My question to you: Is there anything I should be skeptical of or look out for in these next steps? If I get an email from Barracuda and not directly Gurstel, can that cause concern?
I also have both of my calls recorded for my own records.
Thank you in advance, and I appreciate you helping people in times of struggle.
Schedule a phone consult with me when your Gurstel Law settlement letter gets to you: https://calendly.com/debtbytes/15min
I can review it with you.
Hey Jordan, I am in a similar situation and wondered what ended up happening? Did they actually give you a settlement letter?
I am in a similar situation. Hope it worked out and they were honorable.
Hi Michael, I owe navy federal 28K 3 credit card. Visa, mastercard and amex. I called them 1 month ago and ask for financial assistance if they offer reduce payment because of my income change and i cannot afford to pay like 700 a month and they told me they cannot offer any assistance right now. Now i am 2 weeks past due. Never been late in my whole credit history. Will they sue me? like garnishment? Im in new jersey. Thanks
It is not out of the question for Navy Federal to sue to collect. I suggest you schedule a call with me to talk strategy for enrolling in a reduced monthly payment plan with Navy Federal. You can schedule the call here: https://calendly.com/debtbytes/15min
Letter states T-Mobile, account #, amount owed 905.28, “ This letter is to inform you that on 9/26/22 you agreed to a payment arrangement below for a total of 362.11.”, once all payments have been received by us and paid in full by your financial institution , Your account will be recalled by T-Mobile from further collection efforts. We are not obligated to renew this offer. Sincerely convergent outsourcing Inc. I worried about paying this because doesn’t state reduced amount offer. Makes it seem like just agreeing to a payment and then they can come back and ask for balance. It does say total of 362.11 in text as above.., but states once all payments …I’d rather it sa Specifically once 362.11 received.. Am I reading into this to much? They claim is standard letter and won’t change the wording. This also makes me Leary of dealing with them.. thanks for input
I would not be okay with that letter.
You may want to file a bait and switch complaint against Convergent with the CFPB. More on that here: https://consumerrecoverynetwork.com/filing-complaints-with-the-cfpb/
If they verbally agreed to a settlement for the 362, and are calling this a payment only, and the account will be recalled by the creditor, it is not what they said outload, which smacks of bait and switch to me.
When you file the complaint with the CFPB be sure to include the date and time of the call you had with Convergent. Include the number you called, or the number they called you from.
If you know the name of the Convergent collection rep you spoke with, include that too.
Be sure to clearly outline what was said on the call.
Hi, I have a Sallie mae loan of I borrowed from them 2k they billed to 10k I borrowed in January 2019 they said not to make payment nowu can make payment when u graduate, I tried calling them they says I need to make full amount. Is there a way I can settled this. I don’t want to pay extra 8k in wastebasket to them at13%apr.
I suggest scheduling a phone consult with me to talk through your situation in more detail. You can click the get help tab at the top of the page.
Even with a 25% default penalty, and with fees and interest added on, I have a hard time with the debt quadrupling.
If this is private student debt they will settle, but I would want to work from an accurate balance first.
Sounds good I will call you.
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: https://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.