Dealing with Client Services?
First off, tons of great info here thanks for running this site! I missed several payments on a Bank of America credit card with a balance of around $8,000 back in 2013. After a few months Client Services, Inc. began contacting me to collect the debt, though it appears BoA still owns it. I made an agreement at the time to pay CSI $100 per month (all I was able to afford) just to get them off my back.
Fast forward to today, my financial situation is starting to significantly improve and my wife and I are looking to purchase our first home within the next 6 months (baby due in June). There is about $5,000 left on the account and it's reported as a collection on my credit report. I'm not entirely sure how to interpret the report so here is an image: [link to image removed - you are welcome to email me a copy]. We are saving up for a down payment, so I have about $8,000 in my Bank of America checking account currently. Would like to completely remove the collection from my report if possible, but from reading on here seems unlikely the bank would do it.
Thanks for your help!
What's the best way to pay off an unsettled credit card collection that I've been making payments on for 2.5 years?
—Sean
You are not in bad shape to settle your BofA debt with Client Services. It is usually ideal to negotiate a deal with this type of debt collector from the outset rather than make long term payment arrangements. One big reason is that at the time they started collecting you were in worse financial shape. Now it can be a little more difficult to convince them that you are in a hardship.
Settle with Client Services
You should be able to settle with Client Services and save some money. I do not see you reaching the best savings by calling and trying to negotiate if your scheduled payments are being made. It is typically better to stop making those payments and then look to negotiate the best lump sum payoff outcome.
Client Services, like most debt collectors, will have real time access to your credit reports. If they can see that everything on your credit looks to be in great shape, they may not be willing to settle for the best savings.
If your credit report shows you are in collections with several accounts (even if making other bill payments like a car or home loan on time), getting the better settlement terms can become more likely.
I run into Client Services all over the place. They collect for Bank of America and many other major credit card issuers. I see many Citibank accounts go to them, and am seeing more Chase accounts placed with them too. Who they work for can dictate the results you can realistically expect. I often target settlements with Bank of America at between 25 and 40 percent (depending on the collector).

Because you are more than 2 years behind, but current in payments to Client Services, I would be looking to target the high side of that.
I would call and let them know you are likely unable to pay on time this month and were curious to know if a single payoff amount is an option. Let them know you may be able to pull the money together if the amount was reasonable and see what they say.
Getting the Best Result on Your Credit Reports
Client Services is not known for removing any credit report entry in exchange for payment. And, they have zero ability to make credit reporting decisions for the banks who hire them.
You can expect any settlement or payoff you make to Client Services to update to your credit reports. What would typically happen is that you negotiate and resolve the debt with the debt collector, and any reporting they or the creditor do will reflect a zero balance owed shortly thereafter. It will not matter if you pay in full or settle for less on an account this far down the collection pipeline.
That updating is often all that is needed to get your home loan approved. And it is better to do what you are doing, negotiating payoffs on collection accounts, before you apply for a home loan.
Be sure to get any settlement agreement you reach sent to you in writing before you pay. If anyone fails to update your credit reports you will use that letter and your proof of payment to get things corrected.
I have typically found Client Services easy to work with when I am working on a customer file. And I cannot recall an instance where one of our DIY customers mentioned an overly difficult time dealing with them.
Anyone uncertain with how to proceed when calling Client Services to negotiate, call me for a consult at 800-939-8357, option 2 rings to me. Anyone can post questions or concerns about Client Services in the comments below for feedback.
I had 5 cards with Chase that they just up and closed one day Shortly after, I lost my job and so those were the easiest to let lapse. Almost 2 years later, they’re with Client Services and I received significant settlement offers today. I can easily pay them now but am more concerned with the hit my credit has taken. 5 Chase charge-offs and 5 collection accounts. I’d like to buy a house soon but would like to know how to get removals or pay for delete or anything that betters my current credit situation. Any and all advice is welcome. Thanks
I would settle if it were me. With the home loan goal, unpaid collections will prevent loan approval no matter what your credit score is, so you have to, unless you are willing to put your home loan goal off until these negatives fall off your credit when 7 years has elapsed.
HI Michael,
I just started to receive calls from Client Services. I have a couple of recent charge offs with Citibank.
I am guessing it is regarding one of accounts. I am trying to gather some funding for settlement but it will be a while before I have anything to offer. Do you think I should call them for details? Is it worth having some contact at this point?
Thanks for helping all who suffer from debt issues!
Unless you can have a productive conversation about resolving the debt, there is little reason to talk with Client Services.
If your account is charged off, sometimes your settlements can be spread out with payments far enough for you to lock something in today, but if you are not ready for those discussions, I would not talk to them if it were me.
Thanks for your reply Michael,
Not sure if this section is still correct for this, please move comment if necessary.
I just received a letter offer from Client Services for approx. 3,400 on a charge off citi card of 7,600.
Time limit 40 days. Two questions
1. They will be able to see when I list my house, do you think that will effect future negotiations?
2. Do they usually only have account assigned for 60-90 days?
Thanks again for your time!
Are you able to take a settlement offer from Client Services before listing your home? What if they spread it out over 90 days, would that help?
How long they have the account is often related to how far behind with payments to Citibank you are. When did you stop paying Citi?
I wish I could say I have funds but I really won’t prior to selling my home.
(Settling this old debt is my motivation)
Citi has still been receiving some money from my dmp but reduced so recorded like unpaid. Charged off maybe a month now.
It is what it is in this situation. You cannot put the cart before the horse.
Your settlement will still happen, and it may still be able to be done for optimal savings, but that will not always be the case.
Do you want help with this? Sometimes we can structure a deal spread out over enough time to make it so you can lock one in and afford the monthly installment.
I likely will be calling on your services at some point here. I know your expertise is awesome. As much as I want to begin settling I am hesitant to commit to anything that I have any doubt of being able to pay. (I have also learned this from reading your posts for years now!) I have already missed two dmp payments and probably will be out soon, but it has helped to buy some time.
Now Client Services has 2 of my 3 Citi accounts. Received letter offer for approx. 3,200 settlement on 4,800 balance. Not nearly as good as the other one. I have not picked up any of their many calls. At least they are not too aggressive. I hope to be able to settle these before it reaches that point. So drained from this long journey.
Thanks for listening…
Are you just waiting to save up enough to do lump sum settlement payments?
Sometimes doing a settlement and structuring it over several months can prevent an account from escalating to attorney collections.
Unfortunately, I don’t have any funds to put toward settlements until my house sells. Hopefully, it wont take too long and I can start something before lawyers are calling, but I feel like I am stuck…
Just wondering…when we are talking about stretching out a settlement I assume that is like 2 or 3 payments? Those are still too much for me to commit to. They still received a payment from DMP last month but I likely won’t make one this month. I have missed some payments but they haven’t totally dropped me yet. I was hoping to buy some time before legal woes.
Thank you always for great advice…
We can often get settlements spread out longer than 3 months. In some situations we can get settlement agreements over 12 and more months.
You can click on get debt help in the upper right and create a user profile and submit a single account, or multiple, for assistance.
Hi Michael…thanks for being there for all of those drowning in debt!
Going from bad to worse…one Citi account was sold to Calvary (just found out). Also, I got a call from Cawley and Bergmann? Are they a law firm? They said collection agency. I think that is one of my other accounts. (not sure which I haven’t called back yet. Still don’t have any funds until house sells.
I am working hard on that. I am worried I am getting closer to getting sued. I have signed up on Resolve and put all my debts in there.
I’ve settled my debt on my own and now it’s like pulling teeth to get my money back 3800.00
Who are you trying to get money back from?
Stopped making payments on Discover Card in 2010 due to loss of income. Tried to settle with Discover, but was unable to and debt was referred to collection agency. Received settlement offer last week from Client Services – letter dated 1/13/2016 – for 20% of balance. I can and would like to settle but the letter has the following statement: “This offer is valid until 01/01/1900. If payment in full of the settlement amount is not received in our office by this date, this offer will be withdrawn and will be deemed null and void “. Since any payment would be 116 years past this deadline, I am afraid this offer is just a ruse to locate me. Does the 01/01/1900 deadline make the offer bogus, or is it just a default date indicating that the offer has no defined deadline?
I would not take the settlement offer based on a Client Services letter with an expired date. It is a good offer, and I do not think they are bating you. While Discover does not typically settle that low, the longer a debt goes unpaid the better discount you can often see.
I would call Client Services and let them know you are willing to borrow the money to pay the settlement but need a letter with an accurate date. Get them to date the new letter with a decent window of time (a week or three).
What state are you in?
California.
Thanks. That confirms some of why Client Services is offering this low of a pay off amount in their letter.
I would call and get the new letter and then pay Client Services in manner you can easily track.