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 had a corporate card at my old firm and I just received a notice from a collections agency for $90.00 (the annual fee for the card) which is inaccurate because I haven’t used the card or been with the firm in 4 years. I have tried to dispute online and/or by written letter but can’t find any of the appropriate addresses. When I call they transfer me to the collections agency. $90.00 is nothing and I would pay in an instant but I am concerned that if I pay it will show up on my credit report as a legitimate collection even though it is incorrect.. Any advice?
File a debt collection complaint against American Express with the CFPB.
I have an AMEX business card that fell behind about 4-5 months and is with AMEX collections dept. The account was closed but they agreed to reinstate the account once it’s paid in full thru some program. I agreed to pay the balance in full in 3 payments over the next 14 days. I just noticed the account is now showing as collection on my credit. How do I get this deleted since I just made one of three payments due? Thank you for all your help!
You may not be able to get AMEX to delete that from your personal credit report. They will regularly report accounts opened in a business name after a few months of nonpayment. That is because it is an account with your personal guarantee. It is possible to get them to take it off, but I have seen that happen so few times it is not something I would get my hopes up on.
If it is the only negative item appearing on your credit, once you pay American Express in full, that fact will update to your credit reports and not hold you back much, if at all, right away. But that does depend on the rest of your credit profile.
Thank you for your response Michael. Are there any steps you suggest I take to try to get the deletion like threaten not to pay the balance in full?
If AMEX will not remove the late/collection item on my credit report, would you pay the balance in full or try to settle at a lower amount since the damage has been done on the credit report? I guess I am asking if it were you how would you handle the circumstance as the amount is a high balance over $80k. Besides this new negative item on my credit report, my credit history is flawless. Any guidance advice would be much appreciated. Thank you again
You do not have any real leverage to the the account pulled from your credit reports. And whether you settle for less, or pay in full, you will get the same credit report impact.
If it were me, and given the little I have to go on, I would settle for less and move on without AMEX in my life. I encourage you to call in for a consult so I can get more into the particulars of your situation before you go down the settlement path. You can reach me at 800-939-8357 ext 2, or fill in the Talk to Michael form in the right column of this page. I will then call and email to set up a time that works for both of us.
I have an old American express debt that had went to court in the past and had a judgment put on me back in 2011. Years later I received the actual papers from a law firm that was handling it and went on a payment plan to avoid garnishment of my wages. I paid most of the debt down to around $1,000 and asked to have my payments lowered because I was off work on maternity leave. The law firm would not work with me at all and actually sent a payment back that I had mailed in late. This was in 2014 and I haven’t heard anything else about it. Recently we got preapproved for a mortgage loan and are going through the process on purchasing a home. My lender later told me after we started the process that I needed to show proof of the judgment being settled. I called the law firm from before and they no longer are handling the case. So I called the original court that had filed the judgment years ago and they said they have no records of anything being paid or settled. The past week I have been on the phone with 20 different people from American Express recovery services trying to get this matter taken care of and paid. Nobody seems to be able to help and I keep getting different answers. I REALLY need to get this paid and something saying it was settled so we can move forward with our loan. The last person I talked to said I was able to pay over the phone and after that it would take 15-20 days to send papers to the courts and usually takes 6-8 weeks to get cleared. I asked if I could be provided with something saying it was paid or even in the process of being cleared and she said NO! What am I able to do in this situation?? The loan I am taking out is an FHA loan so I don’t think we can move forward unless something shows it has been settled.
Thanks!
To get FHA to approve your loan with a collection account, you often do have to wait until the satisfaction of judgement is filed with the court. There is not a lot of ways to speed that up. Most creditors and debt collectors wait 2 weeks after an account is paid to schedule the work to file with the court. And even the court could be a delay of several days.
It is a normal occurrence to have the bank or debt collector document the agreement to settle. If they refuse, and you still want to make progress, you could record the phone call (tell them you are and why) where they outline they are accepting X amount of dollars as payment in full for the judgment or debt.
If it were me, I may go through with it so I could get things rolling in the right direction. I would give my loan officer a copy of the recording, and proof from my bank account that the amount was taken. But you are still likely going to have some delays.
Hi Michael,
I have an Amex account that I stopped paying in 2008 when I broke my back in a motorcycle accident. I called them up an told them my doctor wasn’t sure when I would work again and is there some kind of program I can get into so I don’t fall behind on my payments? They informed they had no program to help me and there was nothing they could do. So in the end I couldn’t pay them off. In 2011 they filed a lien on my house in California. I wasn’t even living there at the time as I was taking care of mother back in Upstate NY when she was dealing with cancer. So I had no idea about the court case or the lien afterwards. Now I’d like to refinance my house and I discovered I have this lien to deal with. Any suggestions on a game plan for moi? (I don’t have much money to pay them now as I am unemployed and recovering from a recent back surgery)
Any and all help is greatly appreciated.
(thank you for doing this for everybody btw, you rock)
Andrei
The lien means they sued and got a judgment. If they sued and you did not know about it, that can present an opportunity to challenge the judgment.
Was there anyone staying at the house they might have served when you were away? Look at the court record and confirm how they say you were served. You are looking for discrepancies. Let me know what you find.
You can often settle judgment debts. Now is not a great time because you are not working, but that fact can play to your strengths when negotiating the best outcome too.
Let me know what you learn in the court record, and also what your ability is to raise half the judgment balance.
Hi Michael,
Thanks for replying so fast.
It says judgement was personally served or mailed to me at my house address.
I didn’t have anyone I know living at the house at the time and I was in upstate NY so they couldn’t have served me or anyone I know.
Half the amount would be tough.
Also, does length of delinquency play into negations with them? This was filed back in 2010.
What are my options?
Again, thanks for all your help, much appreciated.
Andrei
I would talk to an experienced debt collection defense attorney about your options to vacate the judgment. How old this is can play a part, or at least I know how it has in similar circumstances. It can be difficult to get an older judgment like this vacated. But being in New York can help because of well publicized issues with improper service dating back further than 2010.
I can send you a list of attorneys with the experience you need it you like?
If it comes to settling, what was the judgment amount?
Hi Michael,
That would be great if you could send me that list.
The judgement was for 22,000.
thanks again!
andrei
Hello Michael,
Your excellent commentary has prompted me to ask you a question regarding my situation.
I recently discovered that Amex sued me in September of 2014 for ~19K. I was never served and never knew of the lawsuit until 2016, when I saw that Amex won a judgment against me in my credit report.
Today, I am finally in a position to begin making payments to resolve my debt. However, I am not sure about the best way to approach the matter. I am afraid to phone Amex out of fear that my call may prompt it to seek and destroy my existing bank accounts via levies.
Do you think that I should attempt to have its judgement vacated before initiating settlement talks? I was told this would be a possibility given the company did not properly serve me.
Or, do you think it would be safe to let Amex know that I am genuinely interested in resolving the matter without amplifying the risk of a levy?
Any help that you can provide is greatly appreciated!
Thank you!
What state are you in? What is the name of the law firm that AMEX hired to sue? Have you looked in the court record to see what is recorded for when you were supposedly served? Is there an address listed that you did not live at the time, or any other discrepancy?
Your answers will impact my feedback.
Thank you for your prompt response.
-I live in Indiana
-Yes, I did change my address, and Amex was not aware (still isn’t).
-I have only seen a record that offers Amex as the plaintiff, so I am unaware of the law firm.
-I do not know how Amex claims to have served me, but it was unaware of my location at the time.
My biggest question is how often Amex searches for existing bank accounts. During the two years since its initial action, it did not make a single attempt to seize my account. My concern is that Amex will after I contact it.
I am happy to make significant payments for my entire balance, but am not in a position to pay the balance in one lump sum.
I would look into your options to vacate the judgment first. I will email you some attorneys in Indiana you can speak with about that. It will cost less, but I would only go down that path if you have a decent shot at succeeding.
If you want to settle with AMEX then I would encourage you to call me for a quick consult at 800-939-8357, ext 2, or fill in the talk to Michael form in the right column of this page so we can connect via email. AMEX may be the least straight forward creditor to do settlements with. And there are real concerns to poking a seeping bear and not being able to run fast enough. I will cover that with you on the phone.
The last time I paid on my AMEX was at least 8 years ago, when I got a divorce and signed up with a debt settlement company. Currently, the only debt listed with the settlement company is my AMEX account (all of my other accounts have been paid off). 8 years ago the balance was only about $1300. I’ve called the settlement company and they have been unable to get ahold of AMEX to settlement my debt. Meanwhile, I am paying out $340 a month for the settlement company to put into my settlement savings account.
This account is not listed on my credit report and I would like to have that extra $340/month to put toward a new car (unfortunately, it’s looking like I will need to invest in one). Here’s the question: If I end my dealings with the debt settlement company and have them send me a check for the amount in account, what should I do? Will AMEX suddenly come after me, guns blazing, asking for $1,000 more than what I owed initially? I wouldn’t mind trying to settle with them myself. But would that even be worth my while at this point?
I am not sure what all is happening with you. It sounds like a debt settlement company has had your AMEX account for 8 years and you have been paying monthly since then, but they have still not settled the AMEX account.
Who is the settlement company you are working with?
When did you enroll in the settlement program with them?
How long ago were all of your other debts resolved?
I can offer you better feedback if I know the answers to those questions.
Thank you for your response.
Yes. I have been with the settlement company since 2008. Although, it started out with one company who handed my account off to another company who then handed my account off to Settlement Services due to either going out of business or reorganization.
They have attempted to contact AMEX multiple times to settle my account, but have not received any response. I haven’t heard anything from AMEX myself since probably about 2009.
My last debt besides AMEX was resolved in early 2015.
I am pretty floored that you have been paying a settlement company that long and still not out of debt. What were their fees precisely?
If the AMEX debt is that old, it is likely passed the SOL to sue in court to collect, and is off your credit reports. It almost would not matter if you did not settle it.
Hello,
I am 24 years old and have a $2,400 3 year debt with AMEX in LA, California. I have previously received calls from collectors who have said that AMEX sold the debt to them and they offered settlements. But as of this year, i have received settlement offers with a AMEX letterhead( is it no longer sold to other collectors and back with AMEX). Today i called in and a payoff in FULL and a settlement for a lower percentage was offered to me. I didn’t not agree to any and said i would call back after i review my finances after receiving the numbers and timeline that they are looking for me to pay in.
Im very scared of being scammed and paying some random person. I also will say that I’m looking to buy a home within 1 year, max 2 years I’m in a stable income situation. i want to better my credit score as soon as possible. what are my best options?
Make sure you start your call by calling the main customer service number to AMEX that they publish on their website. Nothing random about that.
Settling and getting your credit report updated to show a paid collection (no matter if you pay in full or for less) will help you accomplish your home loan goal. Check out my post about rebuilding your credit to buy a home.
I received a summons for a debt to Amex this week. I need to file an answer. It is from zwicker & associates. I am unemployed. Should I obtain a lawyer or should I call Zwicker myself?
What is your goal? The answer to that will help me offer better feedback about dealing with Zwicker and Associates.
My goal is to settle with them out of court if possible. Debt $34K Florida
Do you have an attorney to recommend?
Assume you are going to need half the balance -in order to settle. How long will it take to pull together 17k? The longer you need, the more strategic the approach you take with Zwicker. Give me a call for a quick consult and I can provide an outline of what the next few months will look like, and if needed, refer you to an attorney. You can reach me at 800-939-8357 ext 2, or fill in the “Talk to Michael” form in the right column on this page. Those all come direct to me.
A debt collector for Amer Express is offering to cut my balance by half. How will that be listed on my credit report and will it affect my taxes somehow. Is this a smart move to take or not.
Settling an Amex account – once it reaches the collection agency you are dealing with – is typically the right thing to do.
You often cannot deal with AMEX at this point, but the collector.
You cannot undo the credit damage, but by getting the account to show paid and zero balance owed. It does not matter if you pay less, in full, or 10 times what you owe. The update to credit, and its impact, is the same. Because of this, I am a big fan of settling for the best savings.
If you don’t settle the AMEX debt now, you do run the risk of being sued. Amex is heavy on the litigation button at this time.
There are tax implications to settling debt for less. Whether or not you will owe tax is not always a simple thing to figure out. Check out this article about tax on cancelled debt for more about how this could impact you. At the end of the day, settling and preventing a lawsuit, saving money over all, even if you are taxed in your bracket, is worth it.
Hi,
I had an AMEX Gold account that I got behind on in early 2014 for 18K, approx 10K due now and 8K in an extended pay option. In July 2014, I started a 12 month payment play for $1,100 t pay off the due now portion. Completed, all payments on time. Now my balance is about $4,500 and the minimum payment is $50/month.
My issue is that AMEX is reporting this account as in collections/charge off, which it’s not; not reporting the monthly payment amount to the bureaus, and not reporting as paid as agreed. I can understand why, during the 15 months when the account had a past due balance, that they didn’t, but for the last year (since the payment plan has been completed), the account is current and being paid as agreed. I’ve written them about this and they say the account is accurate.
Is this normal? What can I do? I’m now showing a currently delinquent account on my reports that isn’t delinquent.
Is the delinquency showing up as 30 day late payments for last month, and the months before that, or is American Express showing as delinquent back for parts of 2014 and 2015?
I can read your comment to say both.
If the former, call American Express and ask what you need to do to bring your account fully current. Let me know what they say.
If the latter, that is normal unless you get AMEX to agree to reage your account.
Hi,
I have an AMEX card that was close early last year and sent to United Recovery Systems sometime late summer early fall. To back up the previous year I had maxed it out and paid it in full with one payment and then proceeded to max out again. They had offered $3,000 settlement at the time but I didn’t have it. I set up a payment plan. And just recently broke it. I am calling them at the end of the month to settle the debt. I have paid $710 in payments but yet the balance went from $4500 to $4700 rather than down at all. I talked to someone who is helping me repair my credit and they said start low at 35% and take no more than 50-60%. I have 2 questions. Since they offered 3,000 initially would I have a chance now at a lower amount since I have the money to settle and didn’t before? And can I factor in the payments of $710? i.e. 4,500 * 35% = $1575 – $710 = $865 Also, have you had any interactions with this company?
I am familiar with negotiating and settling with URS.
You will be negotiating anew because of the missed payments. None of the prior math will apply, but the collector at United Recovery Systems will see you as sincere given the prior payments you made.
You may be able to get them to 35%, as that is often the floor with American Express accounts that are out with non attorney contingency collection agencies. And if you are prepared to go to 50% I like your chances. But be ready for them to see you differently if things have improved for you financially.
They would not go lower than 65%. I offered 35% of the balance they say I owe with all the fees and interest they have added and they rejected it and used their tactics. I tried and tried and made an arrangement to settle at 65% this Thursday. I am guessing there is no room to negatiate at this point to get 35% -50% right? I wish I would have come back and checked before I settled.
If you locked in the arrangement they will be loathe to change it at this point. And with AMEX accounts, you really want to get things handled. If the deal goes south again be sure to call in for some help before negotiating again.
They were supposed to take out of account July 1st and they didn’t that was to settle account.. And the settlement letter said it was to be settled on July 1st to completed or fulfill settlement. They didn’t complete their part. I will call in to your number.
Hi Michael,
I have 2 AmEx accounts turned over to Michael & Associates for $11k and I had been out of work for a long period with no income and the AmEx accounts about 5 months delinquent. I recently secured a new management job in 2/2016 and at that time made an agreement with Michael & Ass. to the full amount over 6 months. Unfortunately, I was let go by my new company last month and had only paid M&A $6.5k of the agreed amount and since broken the original agreement. I didn’t contact M&A and they have called 3 times and left messages. I have another $10k to also pay with 4 other creditor collectors, but M&A had the only “lawyer” and notarized agreement which has me worried the most. I would ask your opinion as I have paid 60% of the original debt if it would be worth my effort to send a certified letter asking to settle with the $6.5k and ask for confirmation of the settlement in writing? In my research and your very informative site, 60% is more than reasonable and even AmEx might accept that? I’m almost completely judgement proof given Nevada’s friendly debtor exemptions and I have no confidence finding employment soon.
Thanks for your most excellent debt advise site!
You have no shot at revising history. If you had no deal to settle for the 6500 prior, you cannot succeed with a good will request to have that count as such now.
You could likely settle the remainder with Michael and Associates for 50 to 60 percent though.
Thank You Michael for the quick reply!
I originally agreed to the whole 11k without any negotiation which at this point in time has turned out to be an unfortunate move–I always had paid what I owed to this point and with a decent income agreed to the 6 month deal. Sounds like back to square one and unfortunately no income to negotiate with and my other creditors starting to call after missing last month’s payments.
Appreciate your help and honest response!
Fill in the talk to Michael form in the right column if you want to setup a time to talk with me next week. I can help you sketch a plan out that you can implement when you are ready to later, after you are back to work.
I was enrolled in Freedom Debt Relief since August 2015. Due to my good standing with them, I was approved for a Consolidation Plus loan, in which they have offered to settle all of my credit cards up front now and I would pay off the loan versus a debt relief program. I have been working with Consolidation Plus since March and they have settled almost all of my credit card debt, with the exception of my American Express account. This past week I was sued by Zwicker and Associates and I have until about Friday to answer the summons. I do not have legal representation with Consolidation Plus or Freedom. I was told to Answer and then they would continue to work on settling the account, but they did not/cannot tell me how to Answer. I do want to Answer because I do not want them to win automatically before settlement happens, but I’m not sure what advice you can offer me in terms of how I should answer or what happens if I don’t or what my best next steps are.
How much is Zwicker suing for? What state are you in?
They are suing for the full amount of the credit card statement, which is about $9k and I’m in Florida.
I highly recommend working with an attorney who has debt collection defense experience once sued. Your strategy is the right one, to settle the debt and maximize your savings, and filing the answer will help you reach your goal.
I can send you an email with contact details to an attorney with the experience you need if you like?
No that’s okay. I believe this is covered through my benefits at work. I just wasn’t sure if I needed to go the route of legal representation since Consolidation Plus is working on settling the debt already. It’s just taking longer than anticipated.
Thanks for your help.
How do I know these debt collectors are legit? I was just speaking to one of them because I received a letter to pay 40% of the balance owed. However, I told them the payment would be available next Wednesday. They kept asking about paying now and they would reduce it to $2200. I explained that I had to transfer funds from one bank to the other and he just kept going on and on. Then when I got him to shut-up and listen, he now tells me to send it to a different address other than whats on the return coupon. I tried calling Amex and they said that they could not confirm the address because it was not a current account.
Who is the debt collection agency you are dealing with?
When is the last time you paid American Express on this account?
They said they are with the Collection dept. of Amex and the last time I paid was probably Jan of 2015.
Sounds sketchy to me. When was the last time you made a payment to American Express?
January 2015
Hi Michael,
Found your site through Google and the help you are giving everyone is amazing. I have a question of my own concerning Zwicker and Amex if you don’t mind? I spoke with Zwicker today and it appears that my soon to be ex-husband ran up 7k worth of charges before he left. They have filed suit against me as of April 27th. Now it appears the Amex bills I didn’t get because aforementioned soon to be ex-husband was hiding them but if it wasn’t for a phone call I wouldn’t have known about Zwicker. I have never received anything in writing and I have never received a summons from the court. I would have communicated with them if I had. But honestly I didn’t make these charges and I am completely on workers comp at this point unfortunately. Not sure what to do here. Any advice would be appreciated.
Was this an account you opened or is it something the ex opened without you knowing?
If you were to need to settle with Zwicker and Associates how soon would you be able to raise half the amount owed?
Hello,
I did a Google search, and found your article. Perhaps you have an idea of what I should do.
My elderly mother in law has been receiving around 3 automated calls per day on her phone from American Express looking for someone who does not live there. She has tried to tell them that, but she doesn’t understand it’s just a recording. And frankly, I think she’s intimidated by the whole situation.
So, I thought I’d try to help, and have called American Express several times to tell them that the person they are calling is not who they are looking for, Every time they have assured me that her number is going to be taken off of the call list, but the calls have not stopped. It’s been going on for about a month now, maybe longer.
I do not know how they even got her number. She lives alone, and has never to my knowledge even had an American Express card.
What else do you think should I try to do in order to stop their harassment of a 93 year old woman.
What state does your mother in law live in? I will email you some resources you can connect with.
I have a American express judgement on a credit card that was on a corporation business. How it is possible that they put a judgement on my name and not the company? That corporation has been close for many years.I am l;looking to settle with them now. Should I try to do it by myself or get a lawyer?
Business credit with American Express will usually require a personal guarantee. That is why they chase the person and not the business.
Give me a call on Monday Grettel. I can go over some strategies you can pursue.
Hello Michael
What does “highly collectable” mean and why is it bad? Can AMEX take money from your bank account without notice as was said in a previous post? Is that even legal? Very scary..
I have many questions regarding my current situation with AMEX: may I call you tomorrow (Weds 3/23)
what time zone are you in
Highly collectable is meant to describe someone who appears to a debt collector to be able to pay all or most of the debt back. Debt collectors have real time access to your credit reports. You are more, or highly collectable, when you are keeping things like a mortgage, car loan, student loans, and a few other credit cards current.
When you appear that way to a debt collector it is harder to target a better settlement outcome.
AMEX would need a court judgment to levy a bank account.
I am in Sandpoint Idaho, and on pacific time. You can reach me most days after 8 am at 800-939-8357, option 2. Because I am on the phone a lot, we could end up playing phone tag. It is often best to exchange emails in order to set up a time that works for both of us. My email address is the same one you get comment notifications from. If you are not subscribed send to michael at consumerrecoverynetwork dot com.
Crystal – I encourage you to watch this video I just put up: https://youtu.be/RwttPuchUPs
It is about settling with a large debt collection agency, but I highlight the basics of what makes someone look more collectable than another.
Hello,
I have a business account that is an American Express Blue. The business is no longer active and closed several years ago. I have continued to make payments on the account until last year when I became disabled. In Jan 2016 I borrowed money and paid the delinquent payments of $1,766.88 on the balance of $14, 567.69. I received a letter the same month that they were calling in the full balance to be paid immediately. I explained to the collector that I didn’t have any money but that I was getting a refund and could see what I could do…. On initial estimate I had about $3800 I could pay on the new balance of $13,121.98. The collector was very pushy even though I told him I couldn’t file yet because a form was not released yet. He then told me that that was not enough to settle and that they would just keep collecting from me. This was on 2/10/16. Since then I was able to file my return and get the actual amount and can pay a little more. Today I got a call from the Internal Sr collector and could not return the call because I was at the hospital. (Last week I had a minor stroke) While I was at the hospital he was calling my children and my niece and not sure who else as those are just the people that let me know. I called him back furious when he knew he had a good working number and shouldn’t of been calling kids. He is now willing to accept the amount I offered before as a down pmt when he wouldn’t the last call. He says they will accept $7,873.18 for settlement but I still don’t have that much but could probably do $6,000. I do not want this collector to benefit from my payment after what he did today. (I also called you and left a message)
I got your voice mail and left you one a moment ago. Give me a call back to go over the details of your situation. I would like to see you get a better settlement deal given the circumstances.
My husband and I had to stop paying on 3 of our credit cards. We were working with a law firm that deals with credit card debt. They were able to get one credit card debt taken away. However, no one tells you up front that any amount they “forgive” will have to be claimed on taxes. That is a whole other story. After 14 months of non-payment and being represented by my lawyers Amex sent us to Zwicker and I was served a summons. My lawyers handled all of the paper work and answered the summons. We even sent a settlement offer. We owe $10,500 and we offered to settle for $3000 with monthly payments for 3 years. They didn’t respond. I finally called them (Zwicker) and was told that they didn’t work with debt management companies. I thought this was funny since they are a DEBT COLLECTION company but they didn’t share my sense of humor. They made me take back the power of attorney before they would talk to me. Now they are “willing” to settle for a lump sum of $6302. I have 10 days to get the money or we keep moving forward with the court. I can borrow the money but I want assurances from them that we are not going to court and that this is over. If I have to go to court anyway I am considering not taking the offer and just taking my chances with the court. I want to get something in writing saying that it is over. Is that wise?
Zwicker and Associated regularly sends a written outline of any settlement you agree to. That written agreement will have a “paid by” date. As long as you have that and the proof from your bank account that you paid, you have what you need. If you are cutting it too close I would show up in court anyway (even if I already paid the agreement), because I would want to make sure the local attorney got the memo about the case being settled out of court (I have seen mix ups happen).
It is not Zwicker and Associates that refuses to work with third parties. That is a condition of American Express. It is a silly thing to do and could come back to bite AMEX later. But one thing about that policy is that it does not apply if you are being represented by your own attorney in the case. Are you saying that Zwicker required you to get rid of your attorney?
After reviewing the professional advice from all the former postings I thought to contact Mike to see what I could do about my situation.
In a nutshell I became totally disabled a few years back and lost my business’s due issues of my military past sneaking in on me. I was able to pay off all my outstanding debts except my American Express card with my VA and SDI back pay benefits. Almost 40K.
I had one card left with 7200 on it and that eventually became 9400 with late fees and 20 something percent interest.
This was an important time to have had mike give me some tips on how to handle this before I was put into collections. But my state of mind put paying my bills on time at .001 on a scale of 1 to 100. But for many of you you may avoid going from, an 800 credit rating to a 493.
OK back to where I am now… I have had several back and forths with collectors and finally came to a settlement amount of 3100 of the 9400 – that’s a great deal – so I sent in 400 to anchor my deal and not lose this window of urgency. ( I look back and now see how stupid I was) The letter that promised the deal never arrived until the supposed window closed, and then they claimed that I had waited too long and the deal was off the table.
I could tell you what this kind of deceit did to my mental status but we’ve all been there. Injustice is one of my biggest issues.
So here I am 1 year later with the same steps occurring. I am in a tight window of opportunity to send in the money now before this door shuts. We sent you a letter in the mail, (November 4th) its probably in the mail pay us now! Pay it now, before we have to turn it over to a collection agency.
I am doing well enough again to care about my credit and we have enough in taxes coming back to settle for the amount agreed to.
Tips given …note everything; record conversations if possible (nice free aps for Iphone and droids); verbal confirmations of recorded information including all the details is good as written doc….
Other personally helpful information as well, but probably not publicly pertinent.
Its February 12th I will update you more as this progresses.
Krazy Kev
Thanks for posting what you have going on after our phone conversation. I look forward to your updates and your putting this last debt behind you.