Do I have to deal with debt collectors for American Express?
I stopped paying my American Express account when I got laid off. I am working again, and it has taken this long to catch up with most bills. I want to tackle this one, but I cannot pay the full amount.
Can I call American Express and set up payments? I got an offer to pay less than the full amount from a different debt collector than who has my account now. Can I agree and set up payments for that amount with the new collection firm?
How can I deal with a debt collector for American Express?
—Maria
Short answer
In most cases, yes. American Express handles little of its own collection work, so once your account is placed with a debt collector or a collection law firm, any payment arrangement or settlement goes through that collector rather than through Amex.
Key points on this page
- Amex does not bundle up unpaid credit card accounts and sell them to debt buyers as a general practice, so Amex remains the legal owner of the debt.
- Amex has no internal recovery and collection department to speak of. Once the account is behind enough to enter the collection pipeline, you are routed to third party collectors.
- Under about 90 days late, Amex may bring you current or put you on a temporary hardship plan with a lower interest rate for several months, sometimes up to a year. Avoid that plan if the setback is not temporary, because the payment goes back up at the end.
- With contingency collection agencies, Amex accounts can settle as low as 25 percent of the current balance, while other agencies will not go below 50 or 60 percent. Some files are flagged for no settlement, usually where the account is new or the balance is mostly recent usage, cash advances, balance transfers or big ticket items.
- Attorney collectors, such as Zwicker and Associates, can file a collection lawsuit shortly after their first letter. Settlements at that stage tend to be 50 percent or higher. Balances under about four thousand dollars are less likely to go to a collection attorney.
- Amex will not delete its credit reporting and does not do pay for delete, but it does update the entry to a zero balance once the settlement is complete.
American Express handles little of the collection activity for the credit cards people fall behind paying. Your options for dealing with Amex accounts that are already placed with a debt collector, or collection law firm, are going to be limited to working things out with the collectors in most cases.
You can pay or settle with debt collectors on American Express credit cards at the different stages of collections. Below is general information about resolving an AMEX account. I can get more specific with each individual persons situation when you provide details using any of the three below boxes (ask a question, request a settlement estimate, schedule a call with me).
Be sure to read through all of the options I outline in this article, including how American Express will update your credit reports.
You are Less than Ninety Days Late with American Express
American Express has some programs available for repayment when you are struggling with your finances. You can call a customer service rep at AMEX, and if early enough (within a few months of missing payments), they can help you bring your account current, or enroll you in a temporary repayment plan. These plans are generally going to offer you a lower monthly credit card payment for several months, and often up to a year.
The lower AMEX bill is because they are dropping your interest rate down during the months you are on the hardship plan.
Try to avoid taking advantage of any short term payment plan if your financial setbacks are not just temporary. You have no assurance the AMEX will extend the lower payment plan once your time on the temporary plan is up. That means your monthly payments will go back up, and may still be out of reach.
American Express also regularly works with nonprofit credit counselors who can get your monthly payments reduced, and get your interest rate lowered for the life of the balance, or while paying through the counseling agency, which can last up to five years.
You can be current with your credit card payments and still work with a counselor to pay your American Express bill each month.
If you are not yet 3 or more months delinquent in paying your AMEX credit card, and would like to see if you can get a lower monthly payment for the life of the balance, I would encourage you to consult with a credit counselor and get an exact payment quote at 800-939-8357, choose option 1.
If you have more than one or two credit cards you are struggling with, a counselor can help you consolidate most or all of those accounts into one lower payment.
Unpaid American Express Credit Cards are Not Sold to Debt Buyers
One of the first things to point out to people dealing with American Express accounts in collection is that they do not sell debt.
Many major credit card issuers sell off some of their credit card bills (that remain unpaid long enough) to debt buyers. AMEX does not bundle up unpaid credit card accounts to sell off as a general practice. That is not to say AMEX will always retain ownership of their delinquent debts. Bank policies do change from time to time, and operational realities could lead to AMEX changes too. But for now, AMEX is ultimately the legal owner of your unpaid credit card account.
This is an important distinction to point out. There are situations where someone dealing with a debt buyer collecting will have additional strategies to consider.
Amex is also one of few credit card lenders of its size that has no internal recovery and collection department to speak of. That is not to say they are lacking in customer service for their credit card account holders who do call you frequently in the first couple of months you are late. But once your account is behind enough to be dropped into their collection pipeline, you are typically not going to be connected to internal AMEX collection resources. You are, more often than not, going to be routed to third party collectors that AMEX sent your account to.
If you have had financial setbacks that caused you to stop paying American Express, but your accounts are already out for collection, you are generally going to find that any payment arrangements you make, settlement offers you receive, or that we can help you negotiate, will go through the debt collector that is currently collecting for AMEX.
Settling Your American Express Account with a Debt Collector
The type of settlement you can realistically aim for with AMEX credit cards can depend on several things. Your account usage leading up to missing payments is sometimes part of the equation, and so is how collectable you look to the debt collector handling the account for AMEX.
Who the debt collector is can also impact your settlement opportunities. Not all American Express debt collectors are the same. Let me break this down a bit.
The most common debt collector is a working on a contingency. If they can get you to pay something through phone calls and mail, they get to keep a percentage of what you pay. American Express accounts can settle for as low as 25 percent of today’s balance with some of the collection agencies they use, while others may not settle for under 50 or even 60 percent.
There are files that are flagged for no settlement. Some of the reasons this may happen are:
- Your account with American Express is too new.
- Recent AMEX card cash advances.
- Amount owed consists largely of balance transfer.
- The balance owed at time of default was made up of mostly recent months credit usage, or big ticket items.
Being Sued for Your AMEX Debt
There are large debt collection law firms that pick up large blocks of AMEX accounts to collect. They will call and write to you in seemingly the same way as a third party debt collector I just described. But do not let the similarity fool you. Some of these attorney networks, like Zwicker and Associates, can and do file collection lawsuits with the courts shortly after sending you their first collection letter.
Smaller local collection attorneys may contact you about your unpaid American Express card. And any collection letter you receive from an attorney with letterhead showing an address in your state, or one neighboring you, is a clear indication that your risks of being sued to get you to pay have escalated.
Smaller AMEX balances, say under four thousand dollars, are less likely to go to collection attorneys.
Settlements with attorney debt collectors for American Express accounts, whether in or out of court, tend to be at 50 percent or higher. If you appear highly collectable, and are already being sued, decent settlement percentages are harder to negotiate. If you are reading this and have recently been sued for an AMEX account, let me know where you are at in the process using one of the three options below.
We have good success helping people settle with AMEX, even when sued, for under fifty percent, and also with getting the settlement set up over many months. The extra time to pay the settlement can often be the difference in your success!
What if you cannot pay right now?
You mentioned you are not able to pay what is owed, and would hopefully be able to get a payment plan to only pay back what a prior debt collector offered as a settlement. Unfortunately, those lower balance settlement offers usually come with an expiration date. You can try to negotiate the same deal with the new debt collector, but they are not bound by that prior offer, and settlement amounts you can realistically target can change dramatically the more time you need to make monthly payments.
Remember that a debt collector is all about how you need to pay them right now. Anything you say about how tough your finances are at the moment will circle back to what you can pay today and in the near future. Every communication from collectors is for the exclusive purpose of getting money from you. That is how debt collectors are, for the most part.
You need to be concerned with your whole financial picture, and not just this one bill. No matter what the sense of urgency you feel when you are dealing with collectors, always know your cash flow, and never agree to something you are the least bit concerned you will be able to follow through with.
Unless you are dealing with an attorney debt collector licensed in your state, or have already been sued for collection, you probably do not have a debt emergency. And while I do recommend taking advantage of some of the better offers to settle your AMEX accounts with debt collectors early on, you can only do what you can. And even if you are in late stage collections with AMEX (in the courts or about to be), you still have options to navigate the situation, and even delay things.
How AMEX Will Show on Your Credit Reports
If you are only late a couple months on your AMEX payments, they will be showing one or two 30 day late pays on your credit reports. It can still make sense to do a hardship plan in this situation. But if you are more than 2 months late I am typically a fan of settling with AMEX for less, as it could actually benefit your credit more than by getting back on track.
I know… it is weird that your credit could improve years faster from settling for less, than by paying all the money back over a longer period of time. We did not make this system, but we do have to operate in it.
Late payments do not go away. And when you settle a debt for less, AMEX is not going to delete their reporting. They will update it though, and to show there is now a zero balance, once you complete the settlement. This will often mean you are taking a negative credit item and getting it to reflect a zero balance sometimes in a matter of weeks or months, instead of making monthly payments on the full balance of a negative credit reporting item for years.
American Express will not do pay for delete. Most banks will not.
Oh… and I should point out that not paying your AMEX credit cards may result in losing miles and other points in rewards programs, and those not paying their full balances back may not be able to get approved for American Express accounts in the future.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
I have been sued by American express and summoned to court. Already am going thru prime solutions to get my debt resolved. Don’t have that much money and I am between ( low paying jobs)…what do I do… I can’t settle on my own at this point.
What state are you in? Who is the debt collection attorney firm working for AMEX?
What advice did Prime Solutions offer to settle this for you? Do you have payments going out to any other settlements right now (ask Prime Solutions if you do not know)?
Hi- for the last couple of months I have been working on settling my parents credit card debt. It’s a long story but to sum it up they had to close their business and no longer pay their debts. I have manage to come to agreements on settlement on 4 of their cards And of course the last one is their Amex that has refused to negoiate. This past week my patents received a letter from the collection agency Central Credit Services formerly known as Veldos LLC. They have been and were the most unpleasant people to negoiate with. It was high pressure to get me to agree to an amount and the offer was only good if I paid immediately. I was able to get them down from $10,000.00 to $3,500.00. I was willing to accept that amount however wanted it in writing. They said that I would have to first set up payment. to be received by tomorrow and that they would send out a letter at that point in time. I of course didn’t agree. Was I wrong? Should I have trusted that they would send the letter of settlement? I just didn’t feel that they were very legit. I did call American Express after and confirmed that this was the agency that they hired to work from them on their behalf. Have you ever heard of them?
I am familiar with Veldos. You put together a good settlement. They can and do send settlement letters. Stick to your guns about wanting a letter before paying, or you can schedule the payment date for a week to 10 days out in order to allow the agreement to arrive before that (if mailing to you).
You can also record the call you have with them that covers the agreement to settle for the amount you are paying. Tell them you are recording and why. But you still want the letter.
Hello Micheal,
I had an american express debt of about $3,000 back in 2007. Before I lost my job I paid the balance in full every month. Once I lost my job I fell behind with the payments and I didn’t realize I had relief options (silly college student). Fast forward to 2015 I am currently cleaning my credit and most of my delinquent accounts have been paid off and removed from my report. My credit score is in the “Fair” category, and although I’ve never paid the American Express balance they are reporting positively on my credit report with a balance of $0. Once my credit score rises, I’d like to apply for another card with them, but I’d hate to have a hard inquiry on my credit report, and be denied because of my past delinquencies, even though, it looks like they have been forgiven or simply overlooked.
Do you think I should give them a call? or should I just steer clear of them? I’d hate to “rock the boat”!
Thank you,
Claudette
You generally need to have resolved any past debts with American Express before they approve any new account. You will likely want to payoff the debt with American Express prior to applying for a new card.
You can also just skip applying for an American Express account. The one you had that went to collections is too old to appear on your credit reports (it was not an oversight).
Got behind 3 payments with AE…now caught up…owe 4300. Received letter from zwicker and associates. ..will be calling tomorrow…..will want to set up payment plan with them…is this realist in working with them?
You can set up payment plans with Zwicker and Associates. The amounts they will accept can vary depending on several things. What can you afford to pay them monthly?
I had 3 amex cards, I missed one payment on one of them and they closed all 3, I paid off that one card, shortley after I moved and updated my new address but it didn’t get updated, so I wasn’t getting the statements and forgot about it, that was back in 11/2014, in 1/15 I got laid off so I couldn’t afford the payments anymore, it went into collection, I owe on one card around $1,900 and another about $3,000 I asked them to settle the debt in one lump sum, but they said they would’nt because it was opened in 9/2014.
What do you think my chances are to get a sertlement, I have a friend that is willing to help me pay them off in one lump sum, other than $80 verizon collection account and two late mortgage payments in the past 6 months, I pay all my other accounts on time, so I might seem collectable, how do I convince them that I really can’t afford a payment plan and get them to agree to settle.
Thank you
Joseph
You will likely have to wait until your AMEX accounts are out with debt collectors. Even then the account that is not a year old may not settle for less. Unseasoned accounts are difficult to settle with AMEX and other banks too.
Have you heard from any third party debt collectors on either account yet?
We have owed A/E about $26,000 since 2011 and not made a payment since 5/2012. We were contacted by a collection company and was offered to settle for about$7,000 – but I didn’t have the money at that time. I contacted A/E direct within the past month and we have worked out an agreement of about $14,000 (65%). I have built up our FICO score to about 680 and need to keep it moving north. I want to settle, but their letter states “no attempts will be made to collect remaining balance while you are making payments in accordance with terms listed below. Upon payment of the settlement balance due, no attempts will be made to collect remaining balance.” Nothing is stated about removing it from the 3 CRA. Also, what is strange about this – they do not show up anymore (since 4/2015) on any of the CRA’s??? What do you think of going forward with the deal?
Expecting American Express to remove the collection item from your credit reports is unrealistic. That just does not happen. They will update the account to show it is resolved though, and your credit will improve from that. Based on the dates you gave the account would normally fall off from age in 2019 or early 2020. I am not sure what to make of the AMEX collection account no longer showing on your reports now. Was this an AMEX business account?
Accounts that should be on your report, that inexplicably drop off, can and do just reappear.
Moving forward with this AMEX settlement will often depend on your goals. I would want to dig into what those in order to offer the best feedback about moving forward. For that reason, and if you want to see about getting that settlement dropped some more, call in for a consult and lets talk about your situation. You can reach me at 800-939-8357, then choose option 2.
Sorry I should have included that! It is Amex global collections out of Leigh Valley PA. Thank you!
That sounds like Nationwide Credit Inc. If it is, I like your chances of getting your settlement lower, and closer to 40%.
You may have to wear them down a bit by making the offer more than once.
I owe AMEX $2500. It was originally $2100 and went up due to fees. They sent me a 60% offer and I just cant scrape up that much right now. I can do about 40% in one lump sum. Do you think they will take it? I’m a single mother and I just don’t have the extra cash and neither does anyone I can ask. It sounds silly for such a small amount but right now that is my situation. I fell behind on my minimum payments in December around Christmas and never caught back up. I would love to take the offer but just cant. If only they would go a little lower. Not sure if they will make another offer. Will settling affect my credit score as much as not paying it all together?
Who is the debt collection agency working for Amex? That will help me be realistic if encouraging you to contact them and make a count offer to settle.
Resolving a debt collection account is better for your credit reports than unpaid ones. Your score will likely improve given the recency of your delinquency. Also consider that, depending on the credit opportunity you would later apply for, unpaid debt can often prevent approval regardless of your credit score (home financing being the main concern).
Hi Michael,
My wife and i are trying to refi our home and ran into a title lien against our house during a recent credit check. We have an outstanding AMEX debt that is 4 years and 6 mos old which I tried to neg with the attorneys who sued us ( I had offered a 55% lump sum and was told it was accepted – failed to get it in writing and then they dropped negotiations abruptly the day I had $ in bank ready to pay!) so I abandoned the debt without realizing the potential harm this would do to us later..
We owe Amex 13K and there is a title judgement against us.
I approached a lawyer and was told that it would cost $1500 for them to neg for me and that they could save me some $ on debt but wouldn’t tell me what to expect so I did not go that route
I just inherited 5K and would like to offer the second collection company this for a settlement.
I have a 620 FICO credit score ( my wife’s is worse 570 or so)
I probably appear collectible because I have stayed on top of my student loan (mostly) and never missed a car payment. I have a Discover card with 4K on it and have rarely been late.
I am self employed and want to reduce my mortgage to save money to change business locations but don’t know what to do. I have tried to refi with bank and Quicken loans and was told that I first had to get the title judgement removed before they will consider it
I have read all your previous comments regarding similar scenarios….
Do we even stand a chance at negotiating on my own again for a lump sum of 5k? Or do I stand a better chance hiring you or a lawyer to negotiate it for us?
Not quite sure what to do next but would be grateful to hear your opinion,
Thanks
The results of settling the AMEX debt at this late stage of collection can vary. You know some of what makes you look collectable. Who the attorney is, and other factors, will come in to play.
You can call me for a consult at 800-939-8357 then press option 2. Leave a message if you get my voice mail. You can also email me directly to coordinate a time. The email address you get these comment notifications from is mine.
Sunrise,
I recently had similar issue, now I am on a process of paying settlement amount. Like Michael said, it is all depends on who is attorney, and what stage of your debt situation.
I talked to Michael, he actually helped me a lot. Feel free to talk to him.
I just settled just one credit card, I do have to deal with bunch of other account though. I think more you talk to Michael regarding your case. He can assist better.
Thanks for the encouragement..I will do that and let you know what happens
OK I recorded the conversation verifying terms of agreement and terms by which they are to be carried out. I have confirmation that they sent another letter in the mail to me on the 17th as well as previously on the 4th. I have not received any of these letters. I asked that they do not contact me until I call them back when I have the agreement letter in hand. So I have 21 calls in 4 days filling my voice message system. 1-877-443-0144.
So I don’t get out much because of my condition and I don’t stay out long when I do. So I went to a Kinko’s to get a fax from them as per an earlier conversation as a way around not getting letters, my original call went through at 143am I left Kinkos at 240 a half hour after they insisted they showed the fax transmitted and was received. Wow! here we go again. I was not going to sit around and wait so I left and that’s a good thing because now at 320 they show a fax arrived. I so hate this process.
While I was on the phone with him he was insisting that I give him a check number and my account. Had I done so I am almost certain that fax would never have come through almost an hour and a half after he said it was transmitted.
So tired of this game that must be played with collectors.
Krazy Kev… just a little more crazy now that I have to go out on the town for this fax.
Try not to let it get to you too much. I would have been okay with the recording, but if you have a letter waiting for you, I would pick it up for sure.
Who is the debt collection agency you are dealing with again?
Michael,
I have desperate situation too. To make a long story short, I have $9250 debt with AMEX. At first, I hired Debt Settlement firm Brownstone Law Group, they helped to settle two account so far. But, Amex became serious. Before I joined this program, I never made late payment. Anyway, I was told not to communicate with creditors. Now, Jaffe and Asher sued me while my debt settlement firm failed to settled. Jaffe & Asher wanted full amount. Tomorrow, I will call them and find out what they can offer me ( or they are not willing to offer). Few questions regarding Jaffe & Asher.
1. Should give offer from my end, or they will usually try to toss the number?
2. Since my debt settlement company failed it, is it better to call them or attend trial and try to delay my payment.
3. if they offer, how much do they usually offer, (so far, they wanted 100%)
American Express credit card debt that lands with an attorney rarely settles for great reduction, and AMEX collection lawsuits can mean even less favorable negotiation results.
You can start the negotiation with an offer, but what can you pull together as a lump sum?
Whether or not to take your defense of the lawsuit further to buy time is often something that will depend on the reason you need to buy the time, such as save up more to fund a realistic settlement.
Jaffe and Asher is not going to lead with the lowest they are able to offer you for a lower payoff and to dismiss the case.
How collectable do you look on paper? Are you paying other bills on time that shows on your credit reports (home, auto loan, other credit cards)?
Have your other credit cards updated to show that they are settled?
How long ago was it that you stopped paying AMEX?
Thank you for your kind response.
Here is my answers ..
How collectable do you look on paper?
I am working for a US big corp., and I have about 17 credit cards debt 4 of them are $5000 or more, rest of others are low. before I started debt settlement program. It was fine. I do not own home, my car is leased car. But I think Jeffe & Asher think I can still pay back full amount
Have your other credit cards updated to show that they are settled?
two settlements made and still paying not fully paid yet.
How long ago was it that you stopped paying AMEX?
Since last November.
Looks like I have a some plan based on your comments.
1. call Jaffe and Asher ( Not thru my debt settlement firm) personally, and ask for settlement . Hope they offer me some guidance or other . I might about to offer 50% lump -sum. is that good idea?
2. If they do not take it, go to trial and ask for extension to gather more money. but, when I go to court on the day 7/1. if judge give me extension. which means it is not “judgement” ruled yet in record right?
3. questions…is that really matters for me leaving “judgement” on my record. since my credit is already drop bottom?
Thank you very much again…..you are a big help.
If you are paying several other credit cards on time, even though credit cards other than AMEX went to collection, you are going to look more collectable.
You can use the fact that there are other unpaid debts as a talking point, but there are limits to how far that will take you.
1. My target would not be any less than 50% for the settlement, and I am more than a little skeptical that you will be able to get this one done that low on your own.
2. Have you filed an answer to the complaint with the court?
3. Yes, a judgment on your credit report does matter. You really should try to avoid it if possible, but I understand when you can’t. It just is what it is in some cases, and you circle back to settle the judgment for less later on, or agree to make payments to prevent other collection activity.
Michael,
Yes. I provided answer right after i received the summon letter. I was thinking that i could have more time but they set thr court date as 7/1 so quick.
I called Jaffe and Asher ( JA), and in fact they are not willing to drop down any pennies. However they can give payment plan after substantial down payment. I said, i cant afford payment plan because, debt settlment escraw already taking huge money every months not other options for payment plan. Even $100 / mo is hard ( while regardless of how much I can pay as dwon payment)
JA strongly urge to call them back after i should seeing any other ways to gather money.
While I am not sure how to gather money( still wrong on it) to pay as lump sum. I can’t think about punch line to settle with any discounted money. I think JA attorney has some guideline not to settle during initial litigation. Not sure systrm wide or not..(.do you know? ) do you think it is better idea to reach out to my debt settlement company to ask settle again regaring lump sum deal? Would it be easier ?
I gave up for bargaining for 50%. My goal is now to deal for 30% and pay.-If i could get money. But not too sure how to talk to JA since they are not willing to take any below from what I owe.
Thanks Michael. Dealing with attroney is very hard…..
Did you not already cover this scenario and the options available to assist you with the debt settlement company? What exactly was the outcome of that discussion?
Can you raise 50% of the balance Jaffe and Asher are suing for? What if the deal ends up being 60%… can you pull that amount together?
There are times where having a pro handle the negotiations is just better. This could be one of them. I can help you with a resource if you like? But first find out if the debt settlement company you have now will do the work, and if not, fill out this consult form and I will call connect with you off line.
At this point I can probably only afford to pay $250 max per month. I have other financial obligations that total about $4k per month that represents well over half my monthly net income. My goal is to start off with a payment plan of $200 a month for the first year and then increased to $300 year after until it is paid off. Ideally, I’d like a settlement but not in a place where I could afford 50-60% up front.
That payment offer will likely not prevent them from suing on the AMEX account. It is worth trying to negotiate with debt collector though. I do see one off scenarios where longer term payment arrangements are excepted.
If your payment plan with the collector is declined, you may end up being sued. Once a judgment is entered and they try extra ordinary collection efforts that fail, you could likely get them to agree to smaller payments for a longer period of time. Just know that judgment interest is usually going to be applied, so the smaller the payment, the less of a dent you are making on the total owed.
I asked about the other unsecured debt totals in order to make some observations about chapter 7 bankruptcy. Have you looked into it?
I received a letter from Michael & Associates, PC (attorney at law) regarding my AMEX account that was sent to their office for collections. I called AMEX and got an automated message that my account has been closed and sent to ARSI for collections. One is a collection agency and the other a debt collector possibly hired out or affiliated with ARSI that contacted me. Would you suggest I reach out to ARSI or Michael & Associates. My debt is $20k (last payment made Jan 2015) and the only viable prion is a payment arrangement as I don’t have the financial means to offer a suitable settlement. it would be great if you had any insight on these two agencies and how to approach them.
thank you!
I do have some feedback Lulu, but it would be helpful for me to fist know answers to the following:
Did you send any kind of letter to AMEX since you missed payments, and if so, what did it say?
Did you speak with AMEX in the since January, and if so, what about?
Were there any large cash advances or purchases made using your AMEX credit card in the 6 to 12 months prior to stopping payments?
I am looking for reasoning as to why your AMEX account has been placed for potentially more aggressive collections this early in the collection cycle. If there is a reason for it (there isn’t always), that can often help you target realistic outcomes.
No communication from me to AMEX since last payment and no large purchases 6 – 12 months prior. I was also surprised to see this account handled so aggressively. I received a notice from AMEX that this would be last communication to work out payment terms before it was sent to a CA. Shortly after the time expiration to contact AMEX I received the letter from Michael & Associates (within the week).
It is normal for AMEX accounts to get placed with a debt collector earlier than other major card issuers, but legal placement at 4 months is often triggered by something.
How much of a monthly payment can you afford?
Are there other debts besides the AMEX account, and if so, how much do all of them add up to?
I owe Amex 7725.66. I missed 2 payments and a partial 1. Jaffe and Asher called me in March 2014 and demanded $2400 within 4 days. I didn’t have it. I scraped together $1900 and have been paying Amex on line since. In 1 year I paid them $4122.00 I just received a phone call from Jaffe and Asher stating there will be a lawsuit against me from Amex. I need to pay the remaining balance $7725. I said I don’t have that kind of money and the other alternative was $3575.66 by next Friday and 5 monthly payments of $1050.00. I asked if they would offer me a settlement and was told no.. Should I call Amex?
I have seen this type of development with AMEX accounts that get placed with debt collectors, but where account holders work directly within the AMEX payment systems.
In the Amex system, Jaffe and Asher are on contract for collections. American Express will likely tell you as much and typically not work directly with you toward any resolution.
It would be a good idea for us to cover some things in a phone consult. You can reply to the emails you get from the comment notification system, as those all come to me, and we can set up a time to talk.
Hi,
I have a judgement filed for an Amex account in 2010. In 2013 I paid in full to Zwicker & Associates and settled quickly as I was in the process of selling a home. I am selling again and the judgement is still showing and was not reported as settled. I have my payment receipt from Zwicker. What is the fastest way to resolve this judgement.
Thanks
If the court record shows no update since you paid the judgment I would:
1. Call Zwicker and Associates and let them know they dropped the ball with notifying the court. Demand they do so inside of a specified time frame or you will file complaints with the Bar Association and the CFPB.
2. Skip right to filing your complaints.
3. File your own motion with the court using your own attorney.
I reside in Florida and own my property tax homesteaded condominium. American Express Centurion Bank has filed a civil lawsuit against me; the summons hasn’t been served. The credit borrowed was approximately 10,000 dollars. My financial reality is that I don’t have enough to pay even a portion of the money sued for or for an attorney. The legal aid service near doesn’t offer assistance with consumer debt or bankruptcy concerns.
How do I protect my Florida residence from a judgement lien? Thank you very much for the service you provide!
If you live in the Condo you do not have to do anything to protect your home if the collection attorney for American Express gets a judgment. There is no dollar cap on the amount of home value Florida protects from judgment creditors, only the property size is capped (by acreage).
Michael-
How are you affiliated with Cambridge Credit? Also, what are the benefits of using a non-profit debt management company?
How do I confirm that AMEX is receiving payments and has agreed to the deal? Do I get a notice from AMEX?
I have no affiliation with Cambridge Credit Counseling currently, paid or otherwise.
The benefits of using a credit counseling agency (they are nearly all nonprofit), at least in your situation, would be the long term fixed monthly payment you said you were seeking. Many banks will not extend their hardship or reduced payment plans more than once, or more than once in a so many year period. But some will still work with you the same way, and longer term, if you are enrolled in a credit counseling debt management plan. I have a whole section of the debt relief guides dedicated to the topic, starting with an outline of what credit counseling is and how it works. You can review more about the benefits of credit counseling.
You generally will still get your monthly billing statements from American Express while you are enrolled in a DMP. I encourage people to review those statements each and every month to make sure payments and credits are applied according to the plan.
Michael-
I want to repay my entire balance (e.g. not looking for a settlement) and owe about $40K on my Gold Card. I have completed the first 11 of the 12 month program to reduce my balance, but want to set up something more permanent at a much lower rate for a much longer period of time. I have done that with all my other credit cards but don’t have a sense for AMEX since I, maybe mistakenly, entered into ther initial 12 month program they offered.
Do you think this is possible? Do you think I should try and work that out with Amex? They seem only to be willing to do 12 months plans. I don’t want to wait until it goes to collections; I want to pay what I owe over time and set up a permanent plan.
Any recommendations?
Thanks,
Mike
Call my hotline, 800-939-8357, and press option one to talk with a credit counselor about whether AMEX would accept you into a debt management plan with just your one account. If you can, your payment plan with AMEX can be stretched for several years.
I expect the answer to be no while you are still in a temporary payment plan with AMEX. You might want to wait to call between the 12th payment being made, but before the next one (non payment plan monthly payment) is due.
Thanks Michael
I owe around $13k. I can get family help for 50% in the next 10 days but
would the second collection law firm accept to settle for 50% taking into
consideration the court settlement order with the first law firm that
requires full payment.
Thanks
Sal
You can circle back and settle debts for less than the balance owed, even when you are making small monthly payments that were agreed to in or out of court. We have helped people negotiate this result with American Express accounts in the past.
Am I certain you will be able to do this? No. While I see settlements on AMEX accounts at this late stage of collection go for this low, it can often depend on how collectable you look on paper. If you are paying a host of creditors on time, and that shows on your credit reports, you will often appear to debt collectors as someone who can manage to pay more. And sometimes it can come down to how well you carry yourself as having a hardship, or some internal dollar or volume goals at the collection firm.
If that made all this sound complicated, it isn’t, you just need to pick up the phone and start the conversation. Negotiating the better savings tends to favor the person with a financial hardship and/or someone who has other collections appearing on their credit reports.
I called to try and settle and found out that my debt was closed from Collection agency and sent back to AMEX. (collections issues judgement and tried to empy my bank, which had zero balance) I called AMEX 800 number who said they would “take 80%”. by a “supervisor”. (80% equals $17k) I keep hearing 30-60%. from others?? And was it a good thing to go back to AMEX or do collection companies typically better to deal with? If they would take 1/2, or 10.5k, I can pay it but no way the full amount.
Give me a call to discuss the overall situation Jim. You can reach me at 800-939-8357, choose option 2. I am on the phone a good amount of the day. If you get my voice mail be sure to leave a message so I know to return the call.
Hi Michael, My problem with AMEX is while I was hospitalized from 10/30/2014 thru 1/5/2015 due to a screwup that occurred during a laminectomy on my spine. So I missed 3 to 4 payments and they would not talk to my wife because she was not on the account. However, I had gotten her a card on my account but they still would not discuss the account(s) with her. So here I’m stuck in a hospital with no way of taking care of this issue.
They turned my account over to Zwicker, in which are a bunch of liars. They threatened court and even told me that they entered Summary Judgement on me but I have not received any paperwork. I did negotiate a monthly payment with them. $500..
I’m prepared to call AMEX soon to argue that they first sent me to collection too early. Is it not the standard 6 payments late then off to collections. At the same time they cancelled/closed my Costco and Simply Cashcards. I’ve been with AMeX since 1987.. they have srewed up my credit score it dropped from an average 760 down to a 508.
So, can you give me any insight on which I should be handling this problem?
Thanks in advance
There is little point to calling AMEX and arguing anything with them.
American Express is not limited to when they can send your account to a debt collector. No credit card bank is. You could be a day late and the bank could use a collector. Most banks just tend to wait until they have to take the accounting loss which is the charge off.
I would encourage you to call me for a phone consult.That way I can dig into the details a bit more before offering actionable feedback. You can call 800-939-8357, option 2 rings to me. I am on the phone a lot, so be sure to leave a message so I know to call you back. You can also email me a number and some good times to reach you. My email address is the same one you get comment notifications from.
Hi Michael:
I have American express credit card debt that was charged off and a collection law firm which I settled to pay in full through monthly payments for three years after I signed a court settlement order. I paid my monthly payments for 16 month and recently I received a letter from another law collection firm asking for settlement. I reached out to the original law firm and they informed they no longer managing the account and I should contact American express collection which I did and I was informed that my account was transferred to the second law firm. I have couple of questions:
How can I get a written letter from the first law firm certifying the payments I made for 16 month and stating the my remaining balance
What tactic should I use with the second law firm to settle the remaining balance, is it possible to negotiate the remaining balance taking into consideration that I have court order settlement?
I would appreciate any advice you may have to negotiate the tensing balance as I am trying to recover my credit ASAP.
Regards
Sal
I would request an accounting from the prior collector for AMEX In writing, and also from the newest collection firm handling the account. American Express will likely be of little help in this regard, but I would ask them as well.
As far as settling, what do you estimate you owe now? How quickly can you pull together half of that to settle the AMEX account in one lump sum?
I have a delinquent account with AMEX. I tried to settle with the collection agency but was told AMEX doesn’t settle and wants the full amount paid. I tried to enter a payment plan and was not able to keep it. I then got sued by the collection firm. I have negotiated a payment plan thru a stipulated agreement that I am about to sign. However, I keep wondering if it is true that AMEX won’t settle in this case. The stipulated agreement says I will make payments until the full balance is paid and that if I go into default they can request a judgement. This is very serious and scary so I want to just sign the agreement and move on to make payments. But I also keep wondering if I am being naive and have not negotiated hard enough.
I have settled with 2 other credit cards in the past and got a 15% settlement and 30% settlement. So I am not new to negotiating debt settlements but in this case I haven’t been able to get anything other than a repayment plan.
There are indeed instances where you will not be able to settle a credit card debt. I do not have much information to go on to say that is whats happening with your AMEX account, or if the attorney debt collector views your file as highly collectable, and will not budge based on that.
How high are you willing to go to settle? Your expectations may be for too good a savings, as AMEX does not excel in the area of lowest offers approved. Now that you have been sued, the settlement rates can get worse. But debt collection law firms know the real time value of money, even with a file that they see as likely to pay in full (plus costs). I have done 60 to 80 percent lump sum settlements in this situation.
If you do not have the resources to pull together a much higher lump sum offer than what I think you were trying for, and making payments is how you need to proceed, is the amount you are agreeing to pay the law office each month something you are completely confident you can follow through with?
Did you file an answer to the lawsuit with the court?
What is the total you are agreeing to pay?
Who is the law firm handling this for American Express?
The law firm is Zwicker and Associates P.C. The total debt is $15,200 which is the amount I owed AMEX. I do not have the resources to pay a settlement at this point but tried to negotiate with them. The stipulated agreement states that I will pay them the first appearance fee. They will file the answer as well. I received the stipulated agreement from them. I am agreeing to pay $250 per month for the first 12 months and then $300 for the remaining of the debt until it is paid in full.
At first they wanted me to commit to $500 per month because AMEX wanted the debt paid in 36 months at the most. I almost agreed to that but continued to negotiate until I got this plan. Again, I am trying to figure out if I could have done any better.
Thank you
If you are not able to fund the settlement of, say 60 percent, in a lump sum, or broken up into a few payments, than I do not think you were going to succeed with settling. But you did get them to go longer on the payments than I typically see with Zwicker when collecting AMEX accounts, let alone once sued. In that way, you have exceeded expectations!