Settling Credit Card Accounts with a Collection Agency After Charge Off
Credit card accounts have not been paid for a while and now collection companies are calling. I settled one late bill with my bank and I am now tapped out. Can I settle with collectors after charge off?
How to deal with a debt collector after accounts charge off?
—Pay collections
Yes, settling a credit card debt after it has been charged off and a debt collection agency is contacting you for payment is always an option. Below is an edited version of an article we published that explains “Charge Off” and what typically happens with your unpaid accounts after they are considered seriously delinquent and the unpaid balance is assigned to an outside debt collector. Settling the debt may be just the opportunity you need to move on with your finances and restore your credit.
For your unpaid credit card to reach charge off, you will have already been through many collection calls from your original creditor. The first stage of collection calls can last six months.
Creditors have 3 options available when they charge off defaulted credit card debt. The most popular option with newly charged off accounts is to send the debt to a collection agency.
Credit Card Debt Sent to Collection Agencies are Mostly Done on Contingency
The amount of time your account remains with an assignee debt collection agency will vary. Let’s assume that the agency that has your unpaid credit card bill will only have the ability to collect from you for 90 days.
The typical debt collector working for your creditor has two ways they attempt to get you to pay; your phone and your mailbox. There are other ways to collect, such as:
- Collection calls to your job,
- Debt collector calls to family members and friends (this does happen – it sucks and is embarrassing).
Lets focus on the most general efforts used by the debt collector who is collecting on your account just after charge off. When a debt collector gets assigned your account, you will often start getting collection calls (at a high volume). You should also get a collection notice in the mail within a week of the agency having contacted you by phone.
You do not have to pick up the collection calls if you are not ready to negotiate a settlement with the agency. My suggestions for speaking to a third party debt collector are not the same as picking up, or making calls out, to your original credit card lender. And you do not necessarily need to send a debt validation request in response to the collection notices you receive in the mail. That is often counter productive to your settlement goals.
Settling an Account with a Collection Agency
Some important details to consider:
- You will have to pick up the telephone in order to learn about your options with the account. I typically recommend that you not limit yourself to written communications with collection agencies.
- You will be speaking to someone who has been trained to push your buttons using the most effective and proven methods for collecting unpaid debt.
- The agency can only work out arrangements for payments that your original creditor allows them to, or where the debt collector can go back to your creditor and get approval.
- You will not be able to re-age the account when settling charged off accounts with debt collectors (the credit report damage is done by your credit card bank, the debt collector will have no control over that).
- Avoid some of the nut job advice on the internet about handling this stage of collection.
- In some ways, you have more payment term options you can negotiate with a collection agency than you would be able to with your bank.
- The collection agency only gets paid if they can get you to pay them (that may not always be the case, but contingency debt collection is the most common model currently).
Charged Off Debt Get Reported to the Credit Reporting Agencies
When this derogatory credit reporting happens the damage to your credit is done. You do not get to re-age charged off accounts. The credit damage from not paying a charge off account can then only get worse if you are sued, followed by getting a judgment against you. The judgment then shows up in the public record section of your credit report. Also, another debt collection trade line may later show up on your credit reports, and this would be considered additional damage.
A debt collector may comment how you should be concerned with your credit report and credit score after the account they are collecting on gets charged off, but this is just a collection tactic. Collection agencies will have no ability to change how the original credit card issuer reports to Equifax, TransUnion or Experian that your account was charged off.
There are tactics and timing I share on this site, and when you want to work with me one on one, that will better prepare you for dealing with outside debt collectors. You can optimize your results by knowing:
- How to negotiate a settlement deal that is timed with internal goals the collection agency has, and even that an individual debt collector may have.
- When to pass on an offer to settle that is too high without being concerned your particular debt collection agency will sue.
- What your bank will allow the collector to do (how low a settlement can get and what payment terms are common).
- The tricks and tactics that will be used to get you to pay more than you may have needed to.
- Collection abuse tactics.
If you are struggling with several credit card debts that are past the charge off stage, you should learn about your options and identify resources for handling the accounts before they end up in more advanced stages of collection which can include being sued.
It is important that your next step to deal with your now charged off debt be the step you take to put the debt to rest before the situation can deteriorate further. If you are serious about resolving unpaid debts and want to develop a workable plan, getting started is easy. Just post more about your situation in the comments below, and lets go from there.
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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 co-signed a Care Credit account with my son for dental work. Every time the account was late, CC called me and I made sure that the account got paid. In March 2016, my son made arrangements with CC to pay $50/week. After that point I never received anymore phone calls. In Sept 2016 i received notice from my bank that my credit lines were reduced due to negative remarks on my credit report. The source of the remarks were CC. The account have been closed and charged off. When I contacted CC they said that they are required to contact only one of the account owners by law and that the account was sold to MCM, Inc. Atlantic Credit & Finance Inc. is currently servicing the debt for MCM. They offered me a settlement of $1057.75 payable in the month of settlement on a debt of $2644.38 (66% reduction). I asked to receive copies of all monthly statements. They only sent me about half of them.
I can’t pay this amount in one month. I have a business line of credit for my corporation with Citibank that has been closed with a balance of $21,900 and they want payment in 48 months. I can’t pay this either.
I don’t know what to do.
Fill in the talk to Michael form in the right column. When I see that I will email you to set up a time to talk on the phone. I will go over you situation and help you figure out your options.
Hi Michael,
I’m being sued by a debt collecting law firm, on behalf of FIA card services, bank of america; for $27K.
i’m unemployed, they want me to settle for $17K with a monthly payment of $700 roughly. I can’t pay it. i’ve no job. i’m in ny.
any suggestions?
You can defend the lawsuit any buy time in order to come up with the money to settle ( I would negotiate a lower deal too).
You can look at chapter 7 bankruptcy to clear the debt, or set up a payment the court makes them accept (even if it is really low).
Do you have additional unpaid accounts besides this one?
I have debt of $5,700 to some debt collection agency. About 5 years ago I went through some financial hardship where I couldn’t pay my credit card payments so it went for collection. Since approximately three years nobody contacted me. I’m not sure what to do what are my options ? Thank you
Who was your original account with? Who is the debt collector you are dealing with now? What state do you live in?
Hey Michael
I have about 70,000 in debt. 11,000 in peer to peer loan and 33,000 in another peer to peer. 13,000 on BOA card and another 20,000 on BOA card.
I make rough 175,000 butt I have house note, car note and regular house expenses. The peer to peer Loan payments what killing me total 2,500 month.
Should I stop payment on all these let cash build up and try settle with all them one by one?
Lending club and prosper who loan through. Do you think they would settle. For less and payment plan later.
I contacted national debt relief but they wanted me pay them 1400 month fir 4 years do you trust them ?
I know management at National Debt Relief and like them well enough. But I do not like 4 year debt settlement plans.
Assume you need 11k total to settle both BofA accounts. Then assume you need 22k to settle Lending Club and Prosper loans. How long would it take to pull that money together using a whatever means necessary approach?
My in-laws that are elderly have an outstanding credit card debt of $5500.00. I found out that they stopped paying the bill about 8 months ago. The account was opened in 2008. My sister-in-law (POA) has been talking with them and was told to wait until the account is 90 days past due for a settlement. The account is 40 days past due. What offer should we make with the company; TDBank to pay off this debt? They don’t have much money left and own nothing in their name.
I do not see many settlements with TD Bank under 50%.
Michael,
What is it that you charge for your services?
Everyone in the network charges 15% of savings at the end. You pay the creditor the settlement first.
I have a derogatory mark on my CR from GE capital bank I have a very good score with it been on there, but my question is if I wanted to can I negotiate a lower payoff amount to clear the debt other than that it will drop my CR in 2 yrs. so which one is better let it fall off or lower the amount of the debt owe. the acct 6 yrs old
What credit or finance goals do you have in the next 12 to 18 months?
Hello Michael
This is my first Credit Card and I’ve gotten a Collections notice from the collection agency. I’ve lost my job and I tried working with the credit card company by asking if they had a hardship program. They had one but they pretty much didn’t want to work within what I could afford. With such a tight budget what kind of options would I have that work in my best interest? Will they accept low payment until I find another job?
Who is your credit card with? How late are you with payments?
Hi Michael,
What can I do about a credit card that I defaulted on in 2012.
I received a call from a collection agency back in July 2014 stating they were going to file a suit against me if I didn’t come up with the money that was owed on a Capital One Credit Card. I have never received a statement from the collection agency. They were telling me that they take credit card payments only & they will debit the card each month for the payment. I thought it sound fishy, so I told the man I would call him back the next day. I google the number and it was Alliant Capital Management. They had my name & card info. I started making payments to this account July 2014 not even knowing if they were legit.
I never received anything in the mail validating the account.
I don’t even know if the collectors have a right to collect on it.
I stop paying them this year & I recently received a very nasty call from them, yelling & stating they do not have time to babysit me. He said he as giving me 24hrs to pay the account in full or else …
I found their address.
Can I still sent them a letter requesting for validation?
Or, what would you advise on this matter?
Thank you,
Kay
It it were me, I would call Capital One and verify that Alliant Capital Management is the collection agency they sent the account to. After confirming that, I would look to continue payments if that is affordable and consistent with my goals, or skip the payments and offer a lump sum settlement instead.
What is the balance still owed on the account?
there was another agency calling before Alliant. so would capitol one know who the first collection agency sold it to? Alliant said the amount oweing is now $1400.
when they called me the other day. I told him I was going to call him back in 2-3 days because I needed to obtain a prepaid card for him to charge & that’s when he started yelling & demanding it in full & hung up.
Thank you for your time.
Not all debts are sold. Capital One has not been selling much at all in the last few years unless it is their HSBC acquired accounts. Was this an HSBC account originally?
Yes it was HSBC.
Hi, I have a BofA credit card that was charged off in March 2013. They are reporting the $2450 balance (which is $450 over the limit) to the CRAs and it is killing my utilization ratio. I contacted BofA in hopes of negotiating a Pay for Delete settlement but they told me that the account details are in the hands of Sunrise Credit Services and I need to discuss options with them. I just received a letter from Sunrise stating their attempt to collect. I have not read anything positive about Sunrise and am wary of dealing with them and have yet to contact them. Should I see what they have to offer or keep trying with BofA?
Thank You
You will be hard pressed to find any debt collection agency with a glowing reputation.
You will want to negotiate with Sunrise Credit Services now that Bank of America sent your account there.
Be sure to get any deal you negotiate in writing before you pay.
Hello Michael,
I have a credit card debt that has been charged off and sent to a collections agency. They sent me a letter in the mail with a settlement offer and a date to pay it by or it says I need to call to workout a payment plan. What would the best course of action be to save my credit score? Thank you for this article and your advice in advance!
Generally speaking, a resolved collection is better for your credit than one that remains unpaid. And settling old collections for less is often ideal.
Can you afford the lump sum offer? If you are short, how long would it take you to raise the rest?
You can often call in to negotiate a better savings than the one they offered you in a letter.
Hello
How does a person who had a best buy credit, which has been sold to a collection agency get receipts for the best buy purchases? Are the best buy receipts permanently gone?
Thank you
If you end up getting sued for the debt you could try and get as much of the details as possible through the formal discovery process.
I have three different credit cards that all went in to charge-off status around Jan 2016 as I was unable to make payments for 180 days. They total around ~$20k and I have gotten offers from the collection agencies to settle.
I understand the damage is done from the charge off status. What I’m unsure of is: If i reach settlement with the collection agencies will this wipe out the “balances owed” to the initial creditors on my credit report?
In other words by settling for 40-60 cents on the dollar with debt collectors (not the original creditors) can i begin wiping the slate clean on my debt to income ratio? And what will potential employers see when they pull my credit report? Aka, can I say “yes I went thru a rough patch but I’ve made good on debts” or will it still look like i owe all these creditors?
Negotiating a lower pay off does result in the accounts showing as zero balance on your credit reports. It does not matter if you negotiate the deal with a collection agency or the lender. Just be sure to get the deals in writing before paying, and have the ability to show proof of payment. With those 2 things, any credit reporting errors can be fixed quickly.
Hi Michael,
So my husband and I have been dealing with charged off accounts from cards opened under his name by his parents. He worked out a payment plan with Nationwide of $1437 monthly on a 33-40k balance on AMEX and we received an offer from Nationwide this week to settle a chase balance of 9800 for 2300, should we try to negotiate it down also apparently we’re down to 20k on the Amex at some point can we try and renegotiate that with them on a lump sum, at the time we didn’t have the 12k they were asking for and I believe he paid them 7k and worked out that monthly plan automatically withdrawn from his account, was that the right thing to do.
Fill in the talk to Michael form in the right column Jean. I want to dig into the details a bit before offering actionable feedback. When I see the form submission I will email you to set up a time to talk over all of this on the phone.
Hi,
Thank you in advance for your help. I have good credit but got into a fight with Capital One when they unilaterally closed my account and confiscated thousands of dollars worth of miles.
I just received a letter from them that they assigned the debt to JH Capital. I would be happy to settle the debt for 60%-70% of the original sum of 18,000. Although I do not have that kind of money, I have the ability to borrow it iat very very low nterest right now and do not want to let this fester of incur legal expensiveness should they sue me. How do I best do this.?
I live in NY, no payments or contact since end of 2013.
Are there other accounts that you continue to pay on time showing on your credit reports?
You may want to fill in the talk to Michael form in the right column. I will see that and email you to set up a time to connect on the phone. I can dig into personal details that may impact what you can settle for.
Thanks. Yes I have other cards (2) that I continue to pay on time.
Hi Michael, I actually just left another message on a different post, but was a bit concerned by this statement: “Charged off debts get reported to the credit reporting agencies. When this derogatory credit reporting happens the damage to your credit is done. You do not get to re-age charged off accounts”
Provided this information, do you think its better to dispute a derogatory remark ($100 incorrectly charged by an internet provider who did not have my full name or social security number) rather than just pay the collections agency, and have that derogatory report confirmed?
Many Thanks,
Larry
I sometimes suggest disputing collection items that cannot be verified prior to negotiating a settlement.
thanks so much Michael. Should I begin by disputing the item with the credit bureaus? or the collection agency? or the original utility company?
Many Thanks
In your situation I would dispute it with the credit bureaus.
thanks so much Michael. Good Karma to you. Just to clarify, I should individually contact each credit bureau. Is this correct?
The ones that you confirm are reporting it.
Hi Michael,
My ex-husband had an extreme gambling problem (I finally discovered what was going on after 21 years of marriage, and that’s why we are now divorced). Anyway, one of his debts is totally ruining my credit. My score is about 540 at this point. There is a Wells Fargo credit line in the amount of $53K that is held jointly in both our names. I never even knew the account existed (but I was NOT on top of our finances, unfortunately, so it’s not surprising that I wasn’t aware of this joint account). My ex has moved on and is living with a girlfriend in California, but I continue to receive mail on all of his debts. The law firm of Zwicker & Associates P.C. wrote regularly for about 6 months beginning about a year ago. I have never received any phone calls, and now I do not receive anymore letters from the law firm. I am dying to get this debt off of MY credit report. I am currently looking for work, but I am not in the position to make a lump payment or even monthly payments at this time. I did try to dispute that the debt was mine online on my credit reports, but I didn’t have much proof so I don’t believe anything came of my claim. One report notes that I “disagree” with the findings… My question for you is: when should I expect to hear from the lawyers again? And is there any possibility that I could work out a settlement to get MY NAME removed from this debt? My ex is completely ignoring all of his debts–this $53K Wells Fargo debt is literally the LEAST of his problems–he has many many others that are much larger (hundreds of thousands, plus a mortgage of over 1M), But I’m not worried about him, I’m worried about me!
Thank you,
Tina
I would recommend you set up a phone consult with me Tina. I have too many questions and details I will be asking in order to offer some suggestions that would be meaningful to you.
Fill in the talk to Michael form in the right column and when I see that I will email you to set up a time to talk.
Hi Michael,
This is the first time I have experienced debt. Up until now, I had a credit score of nearly 800.
I have only had 1 credit card throughout the years, Discover. Due to unforeseen circumstances and a recent move I have been spiraling down the black hole of not even being able to afford rent but that must come first. That and a car payment. It’s 2016 and I am making less money than I did 20 years ago!
Times have changed, for the worst. FInding work that is full-time is nearly impossible and forget about earning a livable wage.
I am single, no children, educated, and white. I am struggling to say the least! About a year ago, I became a licensed Insurance agent. I drove all around the state of VT. I made less than 4,000 in a year. I depended on my savings, which is now gone! I got a job in April at a garden center. In August I received a letter telling me I needed to get out of my apartment in 30 days because the landlords were selling the property.
After 9 years of living in the same place, I wasn’t prepared financially to make a drastic move which is what I had to do. Upon moving, I got a job as a hostess getting zero to 8 hours a week. I picked up another hostessing job and would get cut after not even 2 hours. This is when I had to make what bills I could pay for a priority.
Now, I owe. I owe the electric company and telephone company. I owe my insurance company. And I owe Discover.
I tried talking to Discover. The problem is- I can’t afford the interest and the monthly payment. I got no where. They want me to catch up and have my payment go back to the 205.00. BUT- the problem is, is that I can’t afford the minimum payment. I can’t afford to pay the interest! I stopped using the card a while back. The thing is…if the interest rate would just be half of what it is….If I could just pay on the principle without the interest and late fees occurring…I could do it! But that’s not how it works. I get it!
If you can’t afford something…You have to pay more for it! It is a backwards system…I have just fallen on hard times….I called to negotiate and communicate a resolution that would work for me. I want nothing for free, but I deserve the opportunity to get back on my feet…I have been a responsible citizen. Now the struggle is about feeding myself and being able to pay rent and find work….it’s an everyday sadness. I want to work, I want to live, I want to Earn….But freedom…I can’t afford. This country is starving its own ….We The People…are hungry.
What is your interest rate with Discover?
Have you missed any payments yet, and if so, how late are you?
I have an order on my account that was just released and I have to pay the Federal Tax Bureau.
I have a Macy’s Account in Collections with United Collections Bureau, Inc for 610.37. They will accept $457.78 back in October. I have a Visa with Bank of America for $3022.
I don’t have the money to pay except for $5 a month for each acct. Can I negotiate with them to stop interest charges? Should I just tell them I don’t have any money to pay them? My credit has been impacted with Macy’s going to collections, late payments reported to credit bureas from mortgage co and car pmts, my car insurance had dropped me, etc.
Bankruptcy not an option since my debt is with taxes, correct?
I have a laptop that I owe $300 on and is interest free so I been plugging away at paying it off.
What do you suggest?
IRS debts can be bankrupted in certain circumstances. Check out this article about finding the right bankruptcy attorney and then consult with a couple and see how chapter 7 would apply to you.
Let me know what you think, and whether you would prefer to try to settle with these collectors later on if your cash flow improves.
What is your experience working with Mercantile Adjustment Bureau in Williamsville NY they have a charge off of $8400. from KeyBank account I owe I can not pay off and would need a payment plan or settlement
Negotiating a settlement with Mercantile Adjustment Bureau is pretty standard stuff. Can you pull together 30 to 40 percent of the balance owed? How soon can you have that at the ready?
Hi Michael,
I have a Chevron card that has gone to collection. The Collection agency is, Genpact Services LLC, and I was offered a settlement thats a 1/3rd of the original debt. Im a little skeptical dealing with them on the phone, as I get transfered back and forth, until they can find a ” specialist”. Also, the agency sounds like they might be in India, is this commen? Is it a good idea to take this settlement?
Thanks,
Gary
When did you last make a payment on your card?
What state are you in?
Dealing with legitimate debt collectors that work out of India is quite common. And settling an unpaid collection account for less than half is pretty common too. I would not give up a penny without getting the deal in writing first, which GenPac is used to providing, so be sure and get that from them first if you do settle.
Will a collection agency sue for 250.00 dollars
I do not doubt that some will, but most do not.
Signed with National Debt Relif 3/16 to settle on credit card of $24,504. Have received a settlement proposal (email with verbal commitment) for $6973 with payment schedule from NDR. Chase sent debt to MRS Solutions. There is no written documentation from MRS for it is a recorded phone negotiation with NDR. After 3 payments of $25 a month to MRS, NDR will take their fee of $5635.92 from my Global Solutions account. MRS will continue to be paid monthly till $6973 is fully paid out of the monthly deposits to Global Solutions. GS sends a check each month to MRS.
With no written confirmation from MRS Solutions and NDR taking their fee with 3 payments accepted by MRS of a total of $75.00. Is this a good/safe way to settle the debt? Was told documentation would follow after final payment. Should I still go with NDR and is this verbal negotiating binding & standard?
Is this the only account you have to negotiate? If not, let me know the other ones. I would not settle with Chase ahead of other, more aggressive creditors.
I you proceed with this settlement you will typically be okay with the verbal through NDR unless a payment is not made on time.
Hi there. I have a wells fargo credit card for 2500$ that has been closed and charged off and they are offering me a settlement offer of 1500. I am unable to pay this.
I also have 5 other accounts that have gone to different collection agencies. 844$ from Midland funding LLC and 669$, 2,261$, 1072$, and 587$ all from Porfolio Recovery Associates,
The accounts in collections have been opened since June 2014 and various dates in 2015.
Do you think Wells Fargo would accept 750$ settlement offer? I may be able to borrow money from a family member.
I gotten numerous letters from these companies and such.
Wells Fargo also offered to let me make 6 payments of 250. But I read online that this could allow them to sue me if i make payments?
I cannot afford to pay off any of this debt. All my credit cards were stolen by a family member in 2012 but when i contacted the credit card companies back then .. they advised that i would have to take legal action in order to settle it.
the family member that was involved doesnt even have a job and i wouldnt have gotten anywhere if i sued her.
Please help! Any advice would be much appreciated. Thanks.
It is unlikely to get Wells Fargo that low. But if you take them up on the 250 payments for 6 months, they are not going to sue you too. Be sure that you get the settlement and payment arrangement in writing from them before you pay a penny.
Debt collectors like Portfolio Recovery Associates, and Midland Funding will sue to collect on small balances like yours. The longer they have had your accounts the more likely they are to pursue more aggressive collections.
What is your situation for saving up to handle more than just the Wells Fargo account?
How would I get that in writing from them? Im not very good with this stuff over the phone. Is there a way to do all this via email?
PRA and Midland have had my accounts for years now. Is there a certain point where they just drop my case?
I thought about contacting PRA via chat online, What are the types of things that I should say to get the lowest payment options?
Right now I do have a job, but my boyfriend lost his job so i am supporting the both of us. We have a car in both our names and i make that payment as well. I dont have any extra money after bills are paid.
If he got a new job that could all change though.
Thank you so much for your advice!
Is there any company or person that I can pay to take on my case and do all the settlements for them? I heard about that from a family member and they said they would help me pay to get that help
You ask them to put the deal in writing and fax or mail that to you before you send them any money. Wells Fargo is used to sending this kind of documentation, and it is a normal request. Hit them up for it when you talk to them on the phone. Be sure to have the first paid by date a couple weeks out to give mail time to reach you.
There are not many debt settlement companies that would take your file with the debt so low. And there is not much to do until you have the funds.
Fill in the talk to Michael form in the right column. I will email you after I get that to set up a time to talk on the phone so I can coach you up on what to do.
Hi Michael, we spoke on the phone earlier today. I was able to pull up my credit reports on annualcreditreport.com.
It looks like quite a few of my debts will fall within the 4 year mark come 2017.
Wells Fargo 2,510$ – last payment made was 11/13/2013
Target – 314$ – last payment made was 1/20/2013
TJ Maxx – 791$ – Last payment was 8/20/2013
Walmart – 1846$ – last payment made was 8/21/2013
There are quite a few more that will be coming up on 4 years. Its really hard to tell which loans are which though and with which collection agency because their names change to synchrony bank or GE capital bank. I have no idea what those are.
Do you think i should wait and lay low for the year?
Wells Fargo hasnt gone into collections yet.
I will let you know as soon as I get that $$ amount btw!
Thanks again for your call today,
Based on what we discussed on the phone, you will want to settle PRA and Midland soon. They tend to file collection lawsuits in the 6 or so months prior to your state SOL expiring.
Laying low on those is not a good plan.
Keep me posted.
Hi michael. Ive been doing some research and the amount owed on some of the collections just dont add up… I dont think that some of the items in collections are mine or accurate.
Should I ask for proof? Or dispute the items? Could this reset my SOL?
Asking for proof of a debt does not reset the sate SOL to file a legitimate lawsuit. Asking for proof will not reset the time it can appear on your creidt reports either.
You can get to the bottom of any collections quickly by calling the original creditors. You can ask who they sent or sold the account to, and what the balance is/was at the time.
Check out this post about debt validation when your goal is settling.
I got a offer of 50% off. To settle $4000 credit card debt. Its been charged off what should i offer?
Who is the original creditor?
Who is the collection agency you got the offer from?
Do you have more than just this account showing as negative on your credit reports? If you have more collections, how many?
Hi, im wondering if 20,000$ in debt is a good enough reason to Bankrupt. I am a single mother, and for unforseen circumstances I let some of my credit cards charge off. Its been roughly a year that I let some of these cards go, the other issue is my car payment since I got the car out of necesity at a 26.3% apr and was never able to re-finance to a lower rate. I have defaulted recently on my car its so difficult because it is an upside down loan now. I reside in CA. I am now employed with a company which I can afford to get back on track. My concern is that I have fallen to behind. Any advice? Please I am desperate. Thanks and blessings
I would at least consult with an experienced bankruptcy attorney and weigh what you learn next to settling your debts. Chapter 7 will certainly be less expensive than settling 20k worth of debts with collection agencies.
Who do you owe, and how much on each account? If you know which collection agency has your account currently, include that information too.
I have received a letter from Law offices of Howard Lee Schift pc telling me that I owe just over $4,000 to bank of America. I know this is correct but I can’t afford to pay more than $30 a month and dont have access to a lump sum ofor money. Do law offices ever allow payment plans? Or is it more likely that I’m going to be sued? I would really like to just settle this and get it behind me.
There are situations where you can set up monthly payment plans with a collection law firm before they sue. It is not common to set up one as long as you are needing based on that small a payment.
I have several charge cards in collection now and it’s getting worse. I’m so frightened they’ll sue. My debt is 5000 or less. Should I file for bankruptcy. Is it common for creditor ti sue? My goal is to get therapy and stop spending what I don’t have.
I rarely suggest filing bankruptcy over 5k worth of bills.
List who you owe and how much, and also include how late you are on each account. I can offer some options to consider from there.
I had a Citibank CC with a $7100 balance that I let go due to medical and childcare expenses. This was transferred to Global Credit and they sent me an offer in Dec 2015 to settle for $2077 (25% of balance) in 12 installments for $173. When I called Global to accept, they said it was too late as I only had a 10 day window to reply (of course, this date was after I received letter.) So I did nothing. It is now with Cavalry and I’m trying to get them to accept the 25% but they won’t budge. Any tips on how to deal with Cavalry?
I have a page up about negotiating with Cavalry. Depending on the situation, you may not be able to get under 40% with them.
Hi Michael,
I have approximately 26k in BOA credit card debt. The card was charged off about a year ago. Long story short, we were unable to pay and had to let it be charged off. WE are now able to start making payments to the card. We got a letter in the mail yesterday from an attorney wanting to represent us saying that the next step is that we could be sued. What is the best way to approach calling the agency and negotiating a lower balance, a payment plan and to get it all off my history? The agency is ” Client Services INC” Please help!
Fill in the talk to Michael form in the right column. I will email you once I get that and coordinate a time to talk about how to resolve the debt with Client Services.
I would look to settle this for a much lower amount, and skip any payment plan. Settling will not only save you money, but get you on track with credit reporting quicker too.
My husband died in 2010 and my mother died in 2014. After his death, I spent more time out of state visiting my mother than i spent at home and racked up alot of debt on my credit card which is with Bank of America. The balance is approximately $26,000. I am on soc. sec. since last year and stopped making payments to BofA 7 months ago. My portion of my mother’s estate should be enough to settle 50% (hopefully less) of my cc balance; but everytime I try to talk to them about a settlement, they start using their scripted words and expect me to answer yes when I don’t even know what they said. I just want them to give me a settlement amount. They said they are getting ready to charge it off. I’m not doing very well emotionally. It’s hard to fight back when you’re always sad. I don’t want to talk to robots who don’t care. I just want them to give me a settlement figure. I would appreciate any advice you could give.
Fill in the talk to Michael form in the right column of this page Barb. I will send you an email when I get that in order to schedule a time to talk over your goals and next steps.
Hello your info I chose from a Google search. Please help. I am willing but not able to repay from lonely games played because my outside apartment neighbors looked and sounded so happy so often and I was miserably lacking in up to date living supplies so I activated the credit cards in the mail that came to me and shopped online and locally thinking the people who were happy with me through thin would be happy with me through thick. I currently have all charged off with one that is closed but still is accruing interest called credit one bank amount owed -$770, last payment $227, like august 2016 minimum due, capital one bank $595 charged off, interest rate was about 17%, last payment was about $30 august year 2015, blaze master card owed $444, interest rate was about 16%. ,SunTrust bank, owing $1425 an over draft debit card last payment approximately $35 in august 2013. Then first premier bank master card owing $1021. Last payment like September 2014, interest rate was around 21%. Please note all the cards here are charged off except credit one bank which I asked to be closed with regular balance of $400 yet with closure the account balance is $765~. Also there are 2 clothing companies cards midnight velvet and seventh both with balances of $434 and $740 in collections. No known interest rate. Last payment approximately June 2015.Then, ge capital, (synchrony furniture) balance $1027 in collections with interest rate around 19%. Also M&T bank over draft, amount $767 in collections interest rate was about 12%. My income is social security. What have I done? Plus student loan of $ 1600.
What is your goal to resolve the debt?
Hi i had a Walmart card that i stopped paying in 2009. Just today out of all those years i received a call saying that i owe 1000 something with interest. I tried to negotiate but the man was just yelling at me. He said he is just taking me to court what can i do. I mean they never sent me any mail or tried to contact me and he has all my information but they did contact my brother. Its been 7 years.
The collection ageny is GE
What state are you in?
When you look at your credit reports do you still see the account on there?
Im in Texas i really dont know but i was able to cosign for my brothers auto loan in 2014.
Be sure to read more about scam debt collectors. It sounds like that may be what you are dealing with.
Ok he told me not to call his Office no more that he was just going to send it to Harris county courthouse.
How can i know if its a scam for sure. He told me not to call his Office again, he was just going to send it to Harris county courthouse. Funny thing that in the call he accidently pressed something and it started recording the call. He thought it was me recording got más and hung up.
My husband paid of his target credit card. About $400 in cash two years ago at the store. When we went to buy our home it came up on his credit report. Long story short it is now in collections for $705. Most of that being late charges when he never received a notice and paid cash for his bill so no way to look it up. When he went to the store they couldn’t find anything. Go figure. What should we do with this collections bill for $705?
How much time do you have before closing?
We already closed. We did it all under me. Just trying to figure out how to deal with this collection the best way to get rid of it.
If you already have the home and are not under that type of pressure, I would work through the CFPB complaint portal by filing a debt collection complaint against Target.
I am not sure how effective it will be. You have a he said/she said situation without any documentation to back you up. But that does not mean you should pay a bill twice either.
My husband and I allowed a capital one card to get charged off about a year and a half ago when we were in a bad place financially. We were in the middle of losing a home I owned on my own to foreclosure and in hind sight should have worked harder to keep that card from charging off but what’s done is now done. Flash forward, we are hoping to be able to make a new home purchase in the spring under my husbands name. We checked the credit report and the charged off account is there, but its not showing as a collections account at this time. We got a call from a CA called Hayt Hayt and Landau and while discussing a potential payment scenario with them, I asked the woman how the payments we were arranging would report on my husbands credit report, and she told me she could not answer that. I have reached out directly to Capital One executive services and hope to hear back from someone but what I wonder is if you have any advise in terms of the account.
The balance is $6587 so it isn’t a small chunk.
She tried to offer me a pay off of like $5200 if I paid in full. I don’t have that much to pay out at once. She basically insinuated that if I don’t pay in one payment then the only options is to arrange to pay off the full balance. I have seen payoff scenarios from other debt collectors that are far more favorable such as paying off 40% for a one time payment and 50% over time.
I am looking for any advice or council on how to move forward. It there nothing I can do to get payments I make to the CA to report as being paid on the account???
If you show monthly payments on a collection account this size, you can often still qualify for FHA underwriting. Many conventional lenders are going to want to see this as resolved before approving a loan.
Hayt, Hayt and Landau are debt collection attorneys. If there is still time for them to sue in your state, you have to be concerned about that. It is better to offer a lump sum settlement in your situation, and 50% is likely as good a settlement as you can get. And that is often not a gimme.
Are you going to be on the new home loan too? It is hard to get financing within 3 years of a foreclosure or short sale.
Hey Micheal, I am turning 20 this week and got my first credit card a year ago and quickly maxed it out, at the time I had just lost my job and assumed I would be able to find a new one soon. Eventually months went by and I still could not find a job or a way to pay my increasing debt. I have just recently found a job and had started to be able to make payments when I got a letter in the mail saying my debt of around $1100 had been sold to Commercial Crédit Adjusters (I live in Alberta, Canada by the way) and that I had 7 days to pay them in full. I called and spoke with the man in charge or my account I guess and he said he would give me till the 17th to give him an answer on whether I could pay in full (which I really don’t think I will be able to but he suggested I talk to my bank for a loan and said this was the only way to keep my credit from going down more was paying it in full but I doubt I could get a loan) and if I can’t I will have 90 days to work it out with them or something like that they called so early this morning. I was just wondering what my best options would be here because I really don’t know what to do and it’s really starting to scare me!! Thanks in advance.
How long would it take you to raise half the amount owed?
I’d say about a month to a month and a half though I may be able to work more than usual.
I would call them back and negotiate a settlement. You may be able to get better than 50% off, so aim lower, but be prepared. I do have a page up dedicated to settling cards in Canada. Read through the article and comments. Post questions and updates there as you make progress.
Hello,
A while back, I co-signed a loan for my nephew and the account is currently being handled through a debt collection agency (NES) due to nearly a year of not being paid. After a number of back-and-forth deliberations, they are currently offering a settlement amount that is roughly 60% of the amount owed. They are claiming that is the bottom line. I am wondering is that likely true and any efforts to negotiate further will be fruitless or even detrimental to the current offer? Or is it possible that they may yet present a lower settlement offer and is it safe to push for that? Thank you for any clarity you can provide!
It was good to speak with you on the phone Jim. Let me know how things go with trying to get them to go lower. As I mentioned, it is a bit different to negotiate on unpaid car loans when you still have, and are going to keep the vehicle.
After attempting to get them to go lower that one last time, they actually countered at a higher price, (from 1890 to 2300) which is what I was afraid of. I assume it was a power play, basically to get me to beg for the lower price of 1890 that I was trying to get lowered. All in all, i recountered the 1890 and they agreed. This has been such a stressful and unnerving ordeal and your willingness to advise and inform me was tremendously helpful. Thank you so much!
I had an American Express CC through Costco. I ended up moving to New Zealand from the US and took a 200 dollar cash advance on the CC when living in NZ. When it came time to pay I called American Express and told them it was a US card but I lived in New Zealand and needed to pay my bill. They told me to call the New Zealand American Express in Auckland. When I called them they told me there was nothing they could do for me since it was a US card. I called the US American Express again and they told me I had to mail a check to their P.O. box. Well I come to find out that not one single bank in NZ issues checks. So then they tell me I need to wire money to them but it has to be a US bank account. I closed my US bank account before I left for NZ and had no way of paying for the 200 dollar cash advance. It ended up going to collections and now a year later I am back in the US and wondering what I need to do to settle this debt and get it taken off my credit report. Thank you for taking the time to read this and I hope to hear from you soon.
Call AMEX directly and see if they can accept payment.
Hello my name is Dorothy Halliburton
I had a Credit One Credit Cards for years – even paid for increase.
Well in Jan 2016 my mom took ill with no real help. So I begin paying for her helper and other household bills. I tried on numerous occasions to get Credit One to mail me copies of bills. The help is unreal (no clue of what person is asking them).
I will take not fault anyone for me not making my payments. My mother was my concern. Period.
Yes i make errors with this card, Monthly charges unreal now that I look at it. I now know what subprime credit cards are.
I do see some payments maybe 3.
Well they mailed me a letter stating they sold to Midland September 16.
I would like to see if they violated any of their policy.
The charge off right at 2,000.
Any help is appreciated.
Mother passed n September.
Your best resource to go through and find out if Credit One did anything wrong would be an experienced debt collection defense attorney. I can email you a list of experienced ones in your state if you like? Where do you live?
I looked at my Credit Report one day and the collection agency called JH Portfolio Debt Equities, LLC showed up on my Credit report. I called them to inquire what was owed and today 10/10/2016, I received a letter from JH Portfolio saying they are collecting a credit card debt that was owed to Bank of America way back in 11/21/2011 that was charged off. They want to make a payment arrangement. I don’t have the money to settle with them. What do I do from here?
What state do you live in?
Do you have any major financing goals between now and 2018?
I still have my residency in Idaho but I work in Utah, I come home on weekends and holidays. I was behind my debt when I lost my job in Idaho during job market crash in 2008. I slowly climbed out of it now. I am current in all my debt (I thought I was) except for this charge off and until the JH Portfolio showed up on my Credit Report which I forgot all about. I was told to be careful dealing with this charge off because it could start the statute of limitation. I want to work with them on payment plan. I don’t have the whole amount of $2,960.22 (this was the original balance from Bank of America). I also need to know how to deal with the negative impact of JH Portfolio on my credit report. Thanks
I would only be looking to settle with the debt collector if you can swing it financially, or if you had credit and financing goals that this would hold you back from (like a home loan).
If you are serious about settling, how long would it take you to pull together a third of it?
I won’t be able to settle with them and pull together a third of the amount until April 2017 when I get my tax refund. I have been dedicating my tax refund to climb out of my debt which I have been able to do. Would it be a good idea to contact JH Portfolio and let them know that I can settle this debt in April or let it be until April? What is the statute of limitation from the original creditor (Bank of America) In the state of Idaho?
5 years. When did you last pay anybody on this account?
I have not paid anyone except the original creditor, Bank of America, last payment was October 2011. I don’t know if any collection agency bought this account besides JH Portfolio, This is why I forgot this account even exist until it showed up on my Credit Report from JH Portfolio. This is why I called JH Portfolio to find out what I owe them and requested a verification because I don’t even know this company. Then they sent me a letter with an attach statement from Bank of America saying what I owe, payment due date of 11/11/2011, etc.
So back to my previous question “Would it be a good idea to contact JH Portfolio and let them know that I can settle this debt in April or let it be until April, then call them?
So, this account is pass the statue of limitation and they can’t take me to court?
From reading some review online, JH portfolio seems like an aggressive collector and they would do anything to collect, even taking people to court.
I don’t get what right does JH portfolio to report/submit what I owe Bank of America to my credit report.
Based on the 11/2011 date it looks like you would still be within the SOL.
If you cannot offer any money until April, there is usually not much to talk to them about. And once you pass the SOL, which appears to be really close, you are often in a better position to negotiate a lower pay off.
If it were me, I would wait until I had the money.
Debt buyers purchase the legal rights to your unpaid debts. That affords them the ability to report a collection trade line.
Thank you so much. I appreciate your knowledge, input, and help on this issues!!!
Thanks again…
I have $10,000 in credit card debt. Mostly, Comenity. I recently lost my job, payments have been late a few months. I cannot afford payments. What are my options? We own our home but I cannot get a loan or borrow against house as a friend purchased for us and we paid him.
You can look to settle with Comenity, the debt collectors they later use, or sell your accounts to. You could save half or more on the balances.
Also, you may want to look into how chapter 7 bankruptcy could help you eliminate these, and other debts.
Wouldn’t that no against my home? Could I lose my home? I can’t tell my husband. He is ill.
I called Comenity to apply for their hardship program. I am terrified to end up in collections. I can manage the smaller payments for one year and hopefully can pay off sooner once I find employment again.
I was afraid to jeopardize my home where I owe private party $80,000. I didn’t think chapter 7 or 13 were really an option without losing more.
What do you think?
I don’t typically like bankruptcy for debts that total 10k or less. Not when you consider you can avoid it by settling for 50% of the balances or less. That means you file chapter 7 over 5k or less, and lose the ability to file for 8 years.
You can often get longer term payment plans than what the banks offer by consolidating debt through a nonprofit.
If you were sued and a judgment entered you could end up with a lien on the home. You can avoid that by settling with them proactively, or in reaction to having been sued.
That lien would not cause you to lose your home. But you would need to deal with eventually.
My parent have $11,000 in Discover credit card debt. Most of the debt is accumulated interest. Actual expenses on the card were about $1500 around 5 years ago. SOL is 6 years. His only source of income is security benefits and wife is disabled. He is 85. Discover has offered to settle for 40%. Should we jump on this offer or let it go to collections?
It will not get much better (the settlement amount) if you let it go to collections. If your goal is to settle and put it behind them, this is a good time to do it. Be sure to get everything in writing before you pay.
I have 4 credit cards with various department stores all being under Comenity bank. I live in NC. Last payment on all of them was Jan, 2012. The total of all 4 combined is $2681. I want to improve my credit score. I already own a home and car so I’m not looking for new credit just would like to know the best way to handle this. Do I call and offer to settle with deletion on my credit report? If so where should I start my negotiation amount? Do I just not do anything and wait until the 7 year mark? Thank you in advance for any guidance you can give me.
If you want to clean up your credit now, rather than wait 3 years, I would suggest negotiating settlements. Call Comenity and find out who they have your accounts out with for collection, or who they may have sold the accounts to, and post those details. I can help you from there.
In my late teens, I opened a Capital One credit card and ran into tough times.. I stopped making payments In 2010, I pulled my credit report from all 3 agencies. In that report on all 3 CRA’s, I had a Capital One cc scheduled to be removed in 2011 at the SOL for reporting. 3 months ago, I pulled all three reports and the Capital One account, now owned by MCI (collection agency), is showing a drop off date of 2018. It was re-aged on the year that it was scheduled to drop off of my credit! I sent a request for validation. They sent me a spreadsheet print out that says my FDOD was in 2011 so it’s been updated on my credit reports as “verified”, but how?? That’s a lie. It’s only $501 & I’m sure I could pay it, but if I do I’m afraid it will guarantee it will stay longer. It should’ve been gone years ago! The problem is, I closed the bank account I would’ve made the payments with long past my the date of my last payment, I don’t have any records or bills from that long ago, I can’t find the credit report that I’d pulled with the correct 7 yr SOL date on it that I’d pulled in 2010, and I don’t know when the exact date was of my last payment, so how do I prove the TRUE date first date of delinquency to get this illegal collection deleted? I’m afraid to talk to Capital One OR the collection agency for fear that I will just make it worse or start the clock over somehow. What should I do?
Left a period off after “stopped making payments”. I know it was between 2005-2008 when I stopped making payments.
*Midland Credit Management, not MCI
You can call Midland and explain everything you are telling me. That will not cause any harm.
I would file a debt collection and/or credit reporting complaint with the CFPB against MCI. Review that article for more about why and what to expect.
Let me know the outcome.
I have a total sport account. I did not pay for several months because of unemployment. I forgot to change my particulars so I never received any calls since I had a new number. I’m done paying it now but it’s charged off. Does it mean I will struggle when applying for a job even though I finished paying? Am I black listed? I really need to know
No, you are probably not black listed. Check to make sure they updated your credit reports to show the account is paid to zero and a resolved collection. Let me know if it isn’t and lets go from there.
I have a few accounts that have gone into collections as recent as September, My debt spans across 9 cards in the amount of 10,000 give or take a few hundred. I want to start settling them, but it is impossible to do so many at once until at least February. Is there a likelihood that I would be sued before then?
Post a list of your creditors and the approximate balance on each. If you are already hearing from third party collectors, identify who and for which account.
I can offer the detailed feedback you need once i have those details.
How do subprime credit card companies (I.e first premier, mid Atlantic bank, first savings bank, etc. handle delinquent credit card accounts varying from 300-700 dollars each
They often sell those accounts off to debt buyers.
Besides the obvious damage to credit and future consequences, is the likely hood of a lawsuit from the debt buyer high on such a low amount of debt and with no personal assets other than income of $20000 and benefits (such as unemployment, etc)?
Unfortunately, debt buyers regularly sue to collect on smaller balances like this.
My wife has a credit card with AMEX that just went to Alltran (we got our first letter today). They sent it to Alltran after nonpayment of 120 days. She owes $12,800. We tried to call AMEX to get our options, but they tried to set us up with structured payments. We didn’t like that idea because we’d have to waive literally ALL of our rights to do so.
My greatest concern is being sued and having some of our (very few, but very important) assets taken. For example, we own 1 acre of property outright (no loan).
I understand that our debt is unsecured currently, but I worry about getting sued and losing our property, which is very important to me.
I’d also like to pay for this debt. I’m not trying to be a horrible person when I tell them that I cannot honestly afford another $300/month payment.
She has two other credit cards in her name, both we have missed some payments on over the past 6 months, but we have made the latest 3 payments on time. These are smaller credit cards, one is $1000, the other $3000.
How concerned should we be about a law suit and what is our best option? My wife suggested that we pay the $300 as we can and if we can’t make it one month, don’t worry about it.
We can’t really come up with enough for a settlement, so that’s out of the question. Mortgaging the property to pay for credit card debt seems at cross purposes.
You should be very concerned about a lawsuit when AMEX is involved.
I generally do not suggest making a payment that is not part of an overall strategy. You might as well light that $300 on fire if it is not part of something structured.
Mortgaging the property is not always at odds with your desire to keep the home. But it is a no starter right now because you cannot typically qualify for a loan when you have late pays and unresolved collection accounts like this.
Call in for a consult and I can help you look at creative ways to accomplish your goal. You can reach me at 800-939-8357, ext 2.
Hi, I have kind of a 2-part question: I live in Illinois, and fell behind on my gas bill over ten years ago. Eventually my gas (used for heating and cooking) was turned off, probably around 2001. It is now a time-barred debt that has long since dropped off my credit report, and nobody has tried to collect in probably a decade. I managed to get by with no gas until a few years ago when, unemployed and broke, I racked up a huge power bill and stopped paying after ComEd refused a workaround, When they finally disconnected my service, I owed them a whopping $12,000, most of it for late fees and interest, I still live in the property working part time for myself and after 2 years with no power, (meaning it’s probably three years since I’ve paid them anything), I’ve managed to save up about $2,500 in cash. I want to try and use my savings to get the power back on, so part one of my question isL if I try contacting the collection agency who now holds the debt, what do you think my chances are of them settling for $2k, assuming I can convince them it’s that or bankruptcy? I’m sure the debt has been charged off long ago, because I’m basically judgement-proof, with no wages to garnish, no liquid assets. no large bank deposits, and no credit cards to speak of. The company that;s handling the debt is listed as Southwest Credit Systems LP out of Carrollton Texas, and per my credit report are “Collection Agency/Attorney”. Unfortunately, the part about the bankruptcy would be a bluff,, because it turns out that the equity in my home is too high, due to Illinois law being unusually strict. We also have a 10-year SOL for contract debt! My mortgage is only $400 a month, and if I had to sell my condo, I’d wind up homeless, because I couldn’t afford to live in even a shared apartment for that amount, in Chicago, so I’m out of options. As the second part of my two part question, if I DID succeed in getting the electricity back on, what are my chances of being able to re-establish gas service as a “new customer” at the same address after all this time? If the old People’s Gas delinquency no longer shows anywhere, would they still have an internal record of it?, I welcome your ideas, and appreciate any feedback.
I would call the power company and discuss all of the plans and options with them. They are who ultimately will decide whether they are going to deliver power to that unit.
It would likely be the easiest to put the power in a different name if that is an option.
The debt collector may settle with you, though maybe not for that low. But I would want that to lead to your power options being restored, and the debt collector has no power to make that happen, only the electric company would.
Our house burned down and we have been sick but after two years getting back on our feet. I have a job but all they care about is getting letter to say I have paid off debt. This is urgent trying to get me an apartment and all that really matters to them is you pay it off and a letter to my e-mail a notice stating it is closed and I paid it off. It’s urgent because I have this all done in the next two days. I have money but I need to know the fastest way to pay off and have them send an e-mail stating it been paid off. The apartment will be gone in two days. Who do I call? To make this happen fast, talk to manager of the collection agency or go back to original creditor. Also if I pay it off tomorrow on my debit card how do I get that letter stating its paid off. They need to see that or I can’t get the unit. What if they say we will send it to your e-mail and they don’t. Best and fastest way to pay it right then tomorrow and they will be waiting on the letters from each one to state it’s paid off.?? Please advise adapt if you can. I have been sick and taking care of mom, I’m trying to get this apartment tomorrow because I have all the money now, otherwise it will be gone cause these units never go vacant!! Hope you can help???
Who is the debt collector you are dealing with, and who is the original creditor?
Hello, My name is Lynn. I have a question regarding an Chase credit card that was charged of 04/12. This account was then sent to Unified collection company in which I set up monthly payment plans and never missed a payment until the final balance was paid 07/16. My question is, the entire time I was paying on this debt, Chase was reporting my account as CO every month with the balance owed. Is this legal? Is there anything I can do to have that removed? I thought a charge off was a one time hit.
The charge off should only count once against you. The fact that the account charged off is typically going to appear on your credit for 7 and one half years from when you stopped making regular payments (before you started making schedule payments to the debt collector).
Not much you can do to remove it early, but your credit can better improve now that it is resolved.
Michael,
I have separated from my husband almost a year ago who completely destroyed my credit. While I was in school he took control of the money (my mistake) and allowed several cards to go unpaid. He even racked up 7 missed payments on my car, not all at once so that it wouldn’t get repossessed, but nonetheless destroyed my credit. Since leaving him I have paid off every credit card that I own and have been making large payments son student loans. My credit score has shot up 150 points within the last 8-9months. I had one small collection from a cable company for $60 that has since been paid and removed. The only derogatory account remaining is a charge off from Target for $2500. I have been leaving that for some time as it hasn’t become a collection and was trying to pay off other things as well as getting my own place, and paying attorneys fees. I doubt I will get any money from him to pay for this account. I believe this is the only reason that I am not constantly being denied for credit cards as other credit factors of mine are positive.
I do not wish to pay the full $2500, especially if getting rid of this account isn’t going to help my score and my likelihood of opening a credit card. (I don’t need a card but was working on continuing to build my credit score back up to the almost 800 that it was before him). I could definitely do a couple of large payments or even a lump sum with a maximum of $1000. Is it likely that TD Bank/Target will remove this charge off for that amount?
The account was charged off a couple years ago but my stupid soon to be ex-husband would pay randomly after it was charged off a small $25 thinking that would help. The last date of payment was 02/2015, it was last reported on my credit as of this past month.
Any advice on what to do and/or working with this company or bank is greatly appreciated!
TD bank settles for half or less in many situations. They will not remove it from your credit reports though. Not even if you paid them the full amount with fees and interest. But that is okay. You credit is improving and the paid collection is not going to throw off your efforts.
I received the denial letter from the card I applied for. The only reason it states for denial is the charge off. Is it worth trying to settle the charge off and at least have them report it is paid or will the credit card companies still see it as a charge off and deny me because of it? Trying to determine if it is worth spending the money to pay off the charge off or just ride it out until it is removed.
For me it would depend on how soon Target is set to drop off your credit reports.
If Target is going to fall off in a year, and I am not going for a mortgage, I would wait it out. If I had a couple years or more to wait, I would probably settle this and wait 6 months or so after the zero balance is showing on my credit, and then make my next move to rebuild.
I have tried to make sense of what different sites are saying. Will the charge off fall off 7 years after it was declared a charge off, after the date of last payment, or after they stop reporting it to the credit agency?
If my credit report only shows date of last payment but not the date of the charge off (which was before the date of last payment) can I dispute it?
Count 7 and one half years from when you stopped sending in regular payments. If you stopped paying for, say 3 months, then made a payment, and stopped from there on out, it is still when you stopped making your regularly scheduled payments.
You can dispute an inaccuracy on your credit reports, but sometimes I would not suggest it.
Hi Michael,
In need of some advice from an expert. In April 2015 I was laid off from my employer and was no longer able to pay on my AMEX. The last payment I think I made was in May 2015 and was not able to do much since unfortunately.
The current balance is a little over $8,300. Amex had tried to collect and settle for 60% back last year, but I didn’t not have that at the time either. It went from them to GC Services and now to a collector called First Source. First Source has been calling, but I have not been in a place to settle.
Are you familiar with them and the best way to negotiate?
Also, I don’t think it has hit my credit report (checked last week) and I am keen on preventing that if at all possible. I am sure that will change soon as they sent a letter asking for a written dispute a little over 30 days ago, but I decided not to contest and give it the run around.
I would like to settle this debt before it can hit my credit report and lower my scores.
Any advice is welcome and greatly appreciated!
I am familiar with First Source. They are a larger debt collection agency. Call me to talk over why settling with them may be best, or why, depending on your ability to settle, you may have to wait, but end up paying more to resolve this in the long run. You can reach me at 800-939-8357, ext 2, or by submitting the talk to Michael form in the right column of this page.
Hi Michael,
After a divorce and a spinal surgery that left me disabled over 3 years ago, I was stuck with half of the family debt ($50 grand) and a total income between SSI and alimony of $62500. I have one child that is in college that I help as I can (he works, helps me) but became overwhelmed with credit card payments, extreme medical bills and living costs out on my own. I signed on a year ago with Harbor Legal Group out of Colorado for a debt consolidation and pay them $600 a month. What they explained to me and what has happened in a year are 2 very different things. So far, they have only reached one agreement with one of the smaller cards for about half. Looking at my account, my $600 payments seem to go in their pocket vs settling with the credit cards. My contract is for 4 years. They had first told me that around 6 months they hoped to have 3-5 settlements. Looking at my credit report as my score continues to dive, most credit card companies have charged off the amounts. I receive no phone calls or threats from them. I am thinking that filing bankruptcy may have been the better choice as I am struggling to pay the $600 per month to them. Is there a legal way I can get out of my contract with Harbor as they don’t seem to be doing what the plan was? Should I look into bankruptcy? Thanks, Dianna
Call me for a consult Dianna. You can reach me at 800-939-8357 ext 2, or submit the talk to Michael form you see in the right column on this page and we can email back and forth to set up a time to talk things over on the phone.
You have to pass a 65k-ish income means test to file chapter 7 in Colorado (2 person household). If you are a one person household you may not be able to do chapter 7.
If you still want to settle debts you may be able to, but I would want you to try everything to get your money back if there were advance fees charged by the settlement outfit.
You can absolutely cancel with the settlement company.
Hey I got myself into tough financial trouble after moving about two years ago and have gotten a steady salaried sales job so money is much more stable. I just settled with my biggest balance card and am having a family member loan me the money. I know I’m going to have a retail and one more credit card go to collections. They’re much lower in balances (800 & 3500) and with finding out how much I can negotiate with them am I able to settle on a lower amount and make payments or do they just negotiate for a lump settlement? I know I won’t be able to loan anymore money from family and really don’t want to and don’t like that I did.
How long ago did you last pay those 2 accounts?
Who are the accounts with?
Who is collecting on them now?
It is often best to settle with a single lump sum amount, but there are instances where you can settle and break it up into payments. There are some creditors, and debt collectors, that I would avoid talking payment plans with.
Another chase for I believe 2500, maybe less not sure to be honest. But haven’t paid in at least 6 months. I can’t do another lump sum because I have no money saved from paying off my debts and I really don’t want to keep hitting family up for it. I have two cards (Nordstrom retail card and a Capital One) that are on the verge of collections and I want to try and keep those from going. Nordstrom will work with me and Capital One I want to keep alive because it’s my oldest card and first card but I think if I could do the minimum payments it would just take forever so I anticipate that going to collections soon. I would love if a collection company would say we’ll take 50$ of the balance and do monthly payments but not sure if they do that or will.
I would avoid settling with Chase using payments and just wait until I could save up to settle for a lump sum.
I would try to tackle Capital One, and with payments, after they charge it off. They cannot go beyond 3 months payments with settlements prior to charge off, but can go longer after that. Just know that talking low monthly payments typically means you are not able to negotiate much or any savings off the full balance owed.
the second chase card actually called me yesterday. We settled from $31xx to $1810 and my brother is lending me $1500 but told the collections he would only give me $1250 so when he’s able to transfer me the money I’m going to go back and tell them I was able to get $1500 and want to pay the full up with that. What’s $300 (I’m hoping they’ll see it that way). I just fear with Capital One that it’ll be too much of an initial payment to keep it alive after all the fees and interest has built up. I need to actually call them and talk to them about it. Also sorry for the delayed responses I’m not getting notified when you write back.
Capital One is far less flexible than Chase. I would put them first then circle back and deal with Chase if it were me.
I just saw this. Was trying to login to capital one and they’ve moved it to collections already it looks like. It’s going to have to be a waiting game now. I guess i screwed that bit up. It’s gonna be a while until they get any sort of settlement from me with settling up my two chase cards. Hopefully I can get some money saving.
He Michael. I have a judgement against me made Nov 2011 for almost $7000 plus interest and costs with Asset Acceptance, LLC. I would like to get this handled. I live in Georgia. What would be the best way to start negotiating with them? I obviously do not have $7000 but my family is willing to help up to $2000. Any advice would be appreciated.
You are likely going to need to pull together more than 2k. How long would it take you to gather up half the balance owed today? Judgment interest can go as high as 12% in Georgia. Assume the balance you owe is closer to 10k now, so you need roughly 5k.
I could maybe come up with 5k in a month or two. Maybe sooner.
I would not make an effort to settle until I had access to about half.
I have a page up dedicated to settling with Asset Acceptance.
If you want help 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 and I will coordinate a time to talk with you via email.
I have two Bank of America accounts with 0% Iam struggling paying them now, the 0 will be up in October….Iam now on disability so I have a very set income of 1400 a month…talk with the debt settlement company boa uses, on paper she said there is s just no way to recover from this with what Iam bringing in now…so Iam not late yet but am going to haft to be now..the payments with interest on them are impossible, should I just do bankruptcy? I have tried to call boa was on hold for 30 minutes had tonged off the phone so I never spoke to anyone..any help would be greatly appreciated…I don’t know what to do….
What are the balance on the BofA accounts as of today?
Do you have other credit card debts, and if so, how much do the additional accounts add up to?
Hello Michael,
I currently have two charged off credits cards. One with Wells Fargo for 900 and the other one with capital one for 300. I opened these when I had just turned 18 in 2012. obviously not knowing how to be responsible with credit cards . I only had them for about a year before I could no longer pay them. I just turned 22 and really don’t want these credit cards to haunt me forever, I’ve read online that even when you pay off debt sometimes collections don’t take it off your credit report? Or you pay more than you owed and I don’t know if it’s worth it to pay these credit cards off if it’s going to cause me more problems. I am willing to pay these cards full I just don’t want to be in credit card debt . (I have student loans to worry about) I haven’t called around because I don’t know where to start and how collections really works to be honest. So if you can lead me in the right direction and maybe some tips that would be greatly appreciated thank you so much.
It is not just sometimes, but nearly all the time, that paying a collection account does not get it removed from your credit. That is normal. But they do update the credit reports to show you paid, and that will help you rebuild your credit.
This very page is full of information. Read deep into the comments for tips and advice. You can check out many of the videos on our YouTube channel for tips and strategy. Here is a good one about timing your negotiation efforts with collectors to start you off.
I am trying to buy a home and I had some collections that needed to be paid off before closing. My mortgage company pulled our credit in May. As of May one of my debts had been removed from one reporting agency because it has been 7 years since the debt was incurred. As of June the debt was removed from all reporting agencies. My mortgage company is saying the debt is still showing as an open account with JH port and we need to pay it or get it removed before we close. My questions are:
1. How can this be?
2. Can my mortgage company still make me pay the debt even though it is not showing on my credit report?
Any input would be greatly appreciated!
It was nice to speak with you on the phone today Lydia. Please post an update after you get things over to the lender.
I have a Capital One Credit Card in collections with Scott and Associates, P.C. out of Carrollton, TX. They account charged off in 07/2015. My last payment was 05/2015. The charge off amount was for $5895. This has been placed on my credit report and updated on 07/03. On 07/04 – Scott and Associates, P.C. Sent me a letter with an intent to sue. The letter states that I have three options 1) Call them 2) Pay off and settles for around $5460 OR make monthly payments of $246.
What are my options for neogtiating settlement of the debt? I can’t pay the full amount at this time. I ideally do not want to make monthly payments of $246 for the long term. I know that I could pay this off completely in March of 2017. I was wondering what my best options are? Should I try to scrounge around for a 50% settlement. Should I try to pay it down and then offer a settlement later? What are your thoughts?
If it were me I would be focused on pulling together 50% and trying to negotiate that outcome now, and before they sue. If you have to be sued, and then buy time using the formal court process to your advantage, and then settle for 50-ish percent, it just is what it is. And I would rather do that (you still avoid a judgment) than agree to monthly payments that you don’t like to begin with.
Have a charged of credit card with Capital One with a balance of $2,173.21. Charged off about a year ago. In April received a letter from Law Offices Weber & Olcese, PLC from Damon C Non- Lawyer Collector asking for payment. Wanted full amount and had no way to pay so didn’t respond. On July 9th 2016 received knock at the door and was served Summons And Complaint from local court. Haven’t called anyone yet and don’t know options. I read a bunch of complaints about this company settling with people for set payments and stopping lawsuit and then coming to find out that they followed truth with court and your a no show and judgement against you. Then they start wiping out banking accounts and tax returns for way more then original balances and what was agreed apon.
It is important to get any settlement agreement in writing before you pay. If you have the written agreement and proof of payment (showing you paid how you were supposed to, and by a certain date), you can fix any mistakes or errors of future collection, should they occur.
Can you pull money together to settle for a lump sum?
Not really but I could make like $300 monthly payments starting next month. But that’s taking out medical bills from my daughter.
You may have to get them to agree to accept what you can afford. I am not a fan of making monthly payments on collections in the court. It usually means you have to consent to a judgment. That is okay if it cannot be avoided.
I have a page up you should review about negotiating payments or a settlement when sued.
I came up with half and they said they agreed to take 50% as long as I pay by 7-29-2016 at their office by 4:00pm. We said I wanted email verify that would settle for $1086.00 and after 24 hours haven’t received anything. Im going tomorrow to pay in cash. They said that they will then send written papers to the court to drop the lawsuit. I’ve read so many complaints against this company that I’m afraid I’m gonna give them this money and they won’t follow through. Is it wise to pay cash? I don’t want them having my banking info cause there are a couple complaints that they actually falsified court papers and went to people’s banks and wiped out checking accounts. Don’t know if that’s true or just dishonest clients trying badmouth them. Also what should they be given me in writing once I give them the cash showing paid in full for less then full amount? Thank you for your replies!
Great site. I just called USAA to settle a Credit Card that have a $9500 balance. It was charged off and the debt is about 4 years old. They told me they could only do 50% and they would let me do 12 months worth of payments.
I also have a HELOC with them at a value of $61k. I haven’t worked on negotiating that…it was also charged off.
What is the best I could hope for on a credit card settlement.
You left a little money on the table, but not much. I would hold off accepting the credit card settlement if you want to settle the HELOC. You can sometimes use the multiple accounts to get the best outcome. Call me tomorrow for a consult if you like. I can ask some questions and go into the details of what I would do in your situation.
You can reach me at 800-939-8357, ext 2, or fill in the talk to Michael form in the right column of the site.
Hi Michael, I want to say thanks so much for all of the great information you provide. I visited a hospital last year for some tests and was of the assumption that my insurance covered the costs. I recently discovered I owed $130 and called the hospital to pay the balance directly. They told me that I would have to contact Kevin B. Wilson law offices (debt collector) and discuss the balance with them. I recently (5/16) received a letter from the collection agency asking that I notify them within 30 days to dispute the validity of the debt which had skyrocketed to $888 due to ‘contractual attorney fees’. Is there anyway I can settle for 50% of this balance and pay it all at once or set up a payment plan? And if so, how would I go about getting that settlement? Should I send a letter to them requesting validation? I’m a full-time student currently living with my parents who cannot afford to pay a debt this large. Any information would be so helpful, thanks so much!
This is aggravating. Call me to go over some details and I will make some suggestions from there. You can reach me at 800-939-8357 ext 2.
Will do! Thanks for your willingness to help; I’ll give you a call on Monday.
Hi Michael,
I have a 6000 debt from a Discover It card. It is not to a collection agency yet, however im sure it will soon be. Can you just give me a quick guess at what % they will typically take as a lump sum payoff? I read some of the conversations on here about certain banks like capital one being aroun 50%.
Thanks in advance!
How long have you had your Discover Card?
How much of the balance is from charges made in the year leading up to payments being stopped?
Were there balance transfers or cash advances in the last 12 to 24 months?
The answers to those questions will help me offer better feedback.
Hi,
I have a advanta charge off account. DLA was 06/2010. I am trying to buy a house and when my report was pulled I found out. I called Carson Smithfield and they said they would settle for 520. and mark it as settled.
Can I negotiate with them to have a pay for delete since the statute of limitation expired?
Thanks!
The SOL to sue may be gone, but the SOL to credit report does not appear to have expired. It is highly unlikely to get a deletion in return for money at this point. Here are some good videos on my Youtube channel to watch:
Does pay for delete work?
How long can a negative stay on my credit?
If this is the only thing holding you back from a home purchase, you will probably be able to get that done once this is resolved, even with it still on your credit.
Hi,
I have a question about a charge-off on our credit report. We have been delinquent on our payments since 2012. I missed a few payments and when I went to start paying they rejected our payment and sent it back saying that our account had gone into collections. I spent all day on the phone calling to find out who our collectors were and how to pay on our debt. I was sent on a run around chase and never found who held our debt. They told me they would contact me once they found who bought it from them. I tried again a few months later only to have the same thing happen. We never got a phone call. Then I ignored it. Now 3 years later we are trying to apply for a mortgage and we are being denied because of this out standing debt. I am receiving conflicting suggestions on how to handle this from the internet. I am hoping you may have some insight on what we can do. We have never been contacted by the credit company, nor any collection agencies
Call me to go over your situation in detail Mallory. Make sure you have a current copy of your credit report. I can help you get to the bottom of it.
I am not in the office at all this weekend or on Monday July 4th, but call me at 800-939-8357, ext 2 on Tuesday.
5/27/2014 Date of letter received from Levy and Associates LLC – representing current owner: Atlantic Credit and Finance – Original Creditor: Household Beneficial. Amount due $11,000. The letter offers me to settle the account with them for $5,500 but only if received by 6/27/14. No payment or contact by me to them was made.
6/10/2015 date of letter received from Kirschenbaum, Phillips & Levy PC telling me that they firm has combined with Levy and Associates LLC and Kirschenbaum and Phillips, PC. The letter just states that same creditor and original creditor as above and I can contact them within 30days if I dispute debt. No contact to them by me was made
3/12/2016 date of letter from Kirschenbaum, Phillips and Levy PC telling me that my account is currently being serviced by Kirschenbaum, Phillips, Levy and that the current owner is Atlantic Credit & Finance Special Fiance Unit LLC. The letter goes on to state that for my records, the account number at charge off and creditor at chare off (HSBC Household Realty Corp) and charge off and current balance $11,000. And if I have any questions to call them. No contact to them by me was made.
It is now 2016 and have funds available to settle this account, but I do not want to trigger a suit. So, how do I handle this? I could go as high as 50%, so $5,500 but prefer to pay less say, 30% which will allow me to settle two more accounts. Last payment was made in 2012. SOL is 6yrs in my state. I don’t want to risk a lawsuit and would prefer to settle and get this behind me. If I just pay the 50%, $5500 that they asked for to settle in 2014 and just mail in that payment with a copy of the letter, would they accept it and just send me a settlement letter.?
Thank you for your advice. I appreciate it.
I would NOT just mail in the amount in a settlement offer that is expired. You want to generate a new letter, but first, what is the amount of the other balances you are trying to settle, and who is collecting on those? I like to be as inclusive with strategy as possible.
Thank you for your reply.
The other accounts I would like to settle are:
1. Nordstoms / Portfolio Recovery Associates owns the account. Balance due is $2800 / received letter 10/1/2015 saying they will accept $1945 for settlement if paid by 11/1/2015. Also letter says that the account transferred to litigation dept, however no attorney has personally reviewed the circumstance of the account.
2. Advanta / Carson Smithfield is collecting. / balance due is $3800/ recieved letter 2/1/2016 saying they will accept $1100 if paid by 3/1/2016.
The Advanta settlement is good.
PRA does sue, and though that letter says the account is/will be placed with the litigation team, it sounds like they have not sued yet. It is highly likley though. Try to avoid that by negotiating a better outcome with them too.
When you settle the Atlantic Credit debt you will be alerting other collectors that you are a better collection target than they may have previously scored you as. Do you have additional resources you can use to settle with PRA? Carson Smithfield is last on my list of priorities if it were me in this situation.
So plan of action should be to call:
1. Call PRA for Nordstrom’s and negotiate a lower settlement with them and pay that. Max I have is $1100 at this time.
2. Call to negotiate a settlement with Levy for Atlantic Credit and pay that. Max I have is $5000 at this time.
3. Then pay Carson Smithfield for Advanta when funds are available. I’ll have to wait a month or two for this one.
I have two additional accounts under collection that are with PRA:
1. Wells Fargo – $12k – received letter on 1/10/16
2. Wells Fargo – $7k – received letter on 5/18/16
BOTH letters for the Wells Fargo accounts state the following: The law limits how long you can be sued on a debt. Because of the age of your debt, we will not sue you for it.
* These two accounts I’m don’t believe I should be concerned with right now as I cannot be sued for them. I can try to settle them at a later time if needed. last payments were made in 2012 on both of the WF accounts also.
Thank you again for your advice.
You have a good grip on your situation and the priorities the way I see them.
Keep me posted with how things develop.
Michael,
I have 2 really quick questions.
If I settle a charge-off by a 12 month plan with the collection agency, how does that hit me for my taxes aka the 1099-C? Do I pay taxes on the whole charged off amount or do I wait to pay taxes when the settlement is paid off?
From what I read it takes apx 7.5 years after charge off for the negative mark to drop from my credit file…. Does that “clock” start ticking when it was charged off? Or after paying this charge off via a settlement, perhaps 12 months later reset my clock and start over?
Thanks!!
Check out this article about how to prepare for tax on cancelled debt, or how to calculate if you will not owe tax at all.
There is no reset on your credit reporting when you settle. The clock starts when you fall behind with payments.
Hi,
Need some guidance to target a few collection companies calling me:
I want to settle these accounts and do not know where to start with my conversation.
Client Services (seeking money for Chase) – amount owed 17000
Norland Group (seeking money for Capital One) – amount owed 3000
HI Again, the third and final one is Admin Recovery LLC Collection Agency for TD Bank for balance of 7500.
How you start off speaking with a debt collector can often hinge on how collectable they see you, and your ability to fund a settlement lump sum vs needing time to pay.
Call me for a quick consult if you like at 800-939-8357, ext 2 rings to me.
I fell behind on payment of my BofA credit card due to medical bills and eventually disability. My account was turned over to NCB Management Services Inc. I was contacted by NCB with an option to pay lump sum or payments. I opted for payments and relayed bank account info and payment amount for monthly debit. I never heard back from NCB – about 5 months went by and was recently contacted by an attorney from a firm called Hayt, Hayt & Landau. When I replied to their letter with proof of the offer to repay, they responded that “their client has determined that the complaint was not vendor caused and therefore, the complaint is unjustified”.
I would like to know what my best options are. I have been banking with BofA for decades and I would like to think that they could let me work this out since I genuinely want to try to repay. I was in contact with them throughout, so it was not as though I was not explaining my situation. I have had no income for almost two years, waiting on SSDI, and my mom had to sell her house to support both of us. The amount of debt is $7792. If I was to try to offer lump
sum, what do you think would be reasonable? This is the only card that I became delinquent on and I want to get this resolved. Will great appreciate any advice.
Targets for settling BofA accounts in collection are great. Given that Hayt Hayt and Landau, a collection law firm, is now involved, your settlement targets will be higher. Can you raise 40 to 50 percent?
Hi Michael
I came to USA five years ago for education. I have completed graduation and then started working..
Until January 2016 everything went so well. I maintained my credit history like treating our own family. No missed payments, optimum usage of credit limit, always less than 27% of total limit. My total credit limit is more than 60K. Here comes the problem, I came to my home country and attended visa interview. but, my visa is still under processing and i’m not sure whether i will get it or not? I returned my leased vehicle under voluntary surrender program. During january to april, i have paid all the bills, rent and everything since then i was hoping i will definitely come back! Now i can’t pay the bills now.credit card balance discover 8500, citi 4500, lending club loan 19000. Until now no late payment has been reported. But from august onwards it will be there on my credit report. since most cards taking 30-60 days time to report.
If i comeback i will definitely pay all the bills soon or later not bothering about credit history. what if the situation is same like now after six months? I don’t want to ditch all these companies but i don’t have option. In my country i cannot earn the same like in USA.
1. will the credit card or collection companies come to my country(ASIA)?
2. if they come, will i get options to negotiate with them? since the money earning will be 5 times lesser?
Please let me know your thoughts
Those lenders will not be chasing you down in Asia.
You can deal with these debts when you are back in the country, or when your finances improve, and when the accounts are out with third party debt collectors. It is very common to be able to settle for less than what you owe when the bills go unpaid long enough.
Focus on the visa, and the rest will get sorted out over time. When things do change, post an update and lets go from there.
Thanks for the response. I will definitely post my situation once there is an update. Regarding visa, it’s not in my hands! Embassy has to issue visa once the’re done with the processing. The bad part is we never know how long it takes?
When I was in college I racked up a ton of debt on a Bank Credit Card. I was able to make minimum payments for a couple of years, but one day I wasn’t able to anymore. Living expenses were too much, and I couldn’t pay anything anymore. When my income rose, I figured it was too late to make payments, so I did nothing. The calls came from the bank, now it’s a collection agency. It’s been two years since I was last able to make a payment. I owe approximately $9000. I’d like to resolve it, but I’m scared and I don’t know what I can do. I don’t answer when they call, but I know they’re calling family members. What are my options now?
Who is the creditor you stopped paying? Who is the collection agency calling now?
PNC is the creditor and the collection agency calling is National Recovery.
Give me a call to go over some additional details at 800-939-8357 (option 2 rings me) if you are ready to negotiate a settlement with National Recovery.
I had a Kay’s credit card that went into collections in I believe 2013 (I live in Ohio). For the past few months a man from Orion’s Management Group, LLC has been calling all of my family members (even some that live hours from me) stating that I owe debt and that I need to contact him. Yesterday he called me at work and then again today stating that I owe $710. He said that I can do one sum of $500 or 3 payments on the $710 but he will only accept my payment via credit or debit card and that I can post date the payments. He said that it must be done via credit/debit card because they are planning to serve me on Monday and it’s the only way to stop the papers from being served. I told him that I have never received any letter about this debt or anything and he said that they sent it and it doesn’t matter if I received it or not but he did give me my valid mailing address however I really have never received any letter. I called Kay’s yesterday but they gave me a different collection agency name, not Orion. The man from Orion said I could call that company (I wouldn’t give him their name) and “follow the paper trail” and that it’ll lead back to his group. I’m just really lost as to what to do and I don’t have the $500 or the 3 payments and I don’t feel comfortable giving him my credit card info.
also, when I look on my credit report (Credit Karma), it lists my Kay’s debt as closed?
That is normal when an account goes without payment for even just a couple months.
The calls to your relatives and disclosing the debt are federal law violations (often state law too). The threat of suing you on Monday (if they don’t, and I doubt they will) is likely a law violation too.
I can email you some Ohio attorneys who handle debt collection violations like this, and often at no cost to you, if you like? It is what I would do next if I were you.
Yes, I would like if you could e-mail me a list of Ohio attorneys, however I’m not sure I could even afford one.
Never mind, I saw that you said it could be no cost. Thank you.
Sent. Let me know how it goes.
Hi Michael,
I live in Alaska and own a fishing lodge. During the crash of 2008 I had defaulted on 2 bank of america cards and was just trying to make my mortgage payments. I had closed them both and was on a payment plan for a couple years but was unable to keep up with the payments. They were both charged off in 2012 and is past the statute of limitations for Alaska. Rather than waiting for them to be deleted from my credit report in another 3 years I would like to negotiate a settlement to get them removed or a change of status on my report. How do I go about negotiating a settlement and what percentage of the balances should I offer. One has a balance of 12,000 and the other is 14,000. I have 6,000 saved up. I would really appreciate your help.
Thank You,
Mike B.
Your next steps for settling those BofA accounts can largely depend on the collection agency handling the accounts, or if FIA (which is Bank of America) has them in house.
Have you received anything from a debt collector by phone or mail so far in 2016?
I haven’t received any type of correspondence from anyone for a couple years. So I’m not sure who is holding the debt. It just says charge off May 2012 Bank Of America on my credit report.
My credit report says the creditor contact details are thus.
BANK OF AMERICA
PO BOX 982235
EL PASO, TX
79998
(800) 421-2110
Okay, thanks Mike. There are a couple of ways to approach this from here. But first things first, and that is to find out who you will be negotiating with. Call the number for BofA you just posted from your credit report. You will give them your social or the account number in order for them to direct you to the right department. You will likely end up speakign with someone in FIA card services if Bank of America does not have your account(s) out with an agency. If one or both accounts are with FIA you will be looking at following a slightly different path to resolving the debt than if you are dealing with an outside debt collector.
If they have one or both accounts out with a collection agency they will tell you who and the toll free number to call.
Let me know what you learn and lets go from there.
Hi Mike,
I talked with Recovery Services at BOA and she said they are still holding the accounts. She said I was no longer obligated to pay and they had sent out a 1099c for 2015. I told her I would like to negotiate a settlement and she said she will contact the legal department and for me to call back in 3 to 5 days to see how they would like to handle it. Hopefully that helps.
It helps. I would suggest you give me a call for a consult. I want to cover what you are able to settle for set beside your goals for doing so. I am not all that optimistic you will be able to get the deal you need negotiated given the circumstances. But let’s talk some more about it off line. You can reach me at 800-939-8357. press 2 to get me. You can also email back the same comment notification email, as those all come to me, and we can correspond through email to set up a time.
Hi Michael,
I am in Boston, Massachusetts.bam hav’s pretty bad credit card situation. I recently lost my job. I have not been working since November of 2015. We recently had our second child and my wife needed to go back to finish her medical assistant accelerated program. I ended up doing ok surviving due to the tax return.
My credit debt as follow;
1) $21000 maxed with Bank of America late since acct still open
2) 13000 maxed with Chase past due/minimum due $1900 late since December 2015 acct stil open.
3) $3000 with best buy/city
4) $6000 with city currently in a a 5 years payment plan with Citi
5) $16000 was with Citi, now is with GC Services, collection service. On Saturday I returned their Tuesday call. They left a voice message with a name and a telephone number. I didn’t know who was that person, so I called and found out they were a collection agency. The lady on Saturday 5/28/2016 offered me 3 options;
1. Divide the total balance into 12 monthly payments ($1,333/month)
2. Pay $440 every month
3. Settle the balance by paying $7,000 by 5/31/2016. I told her that I can’t pay $7,000 in 3 days. She checked with her supervisor, and said that I can pay half by 5/31/2016 ($3,500) and the second half by June/15/2016. The collection lady said I need to connect with her on Tuesday between 8am-5pm to let her know about my decision. I’m barely catching up on some other late bills for credit card, student loan, rent, preschool, money owed to family and friend., Electricity, hospital bills.
My questions are;
-Should I talk to the other banks about settlements, before I try to gather the money?
-Should I negotiate settling the account before it her gets charged off or sold to a collection agency?
-how much time after the account is charged off do I have to select the settlement option?
-can I decline to settle with the bank or agency, and when I get the funds call the collection agency to .ask fory settlement.
I would like to settle the balance, but can’t come up with that amount in 3 days. According to the collection lady, if I accept the settlement, I need to pay immediately or can’t take advantage of the settlement option in the future.
You are not going to lose out on the opportunity to settle with Citibank if you do not take advantage of the deal with GC Services. And it may make sense to settle other accounts earlier that his one.
I would encourage you to call in for a phone consult and I can provide more details into the reality of your situation right now, and looking forward the next 6 to 12 months. You may determine you want to settle with Citibank first, but on first impression I would likely use my money to settle more debt with BofA first.
You do not have to be in a hurry to negotiate the debts before charge off. You can often get more flexibility after charge off, and the more debt you have to settle, the more flexibility is needed.
You can settle at virtually anytime after charge off. There is no real time limit to share. But you want to avoid being sued, and that is a timing concern.
Call me at 800-939-8357, option 2 rings to me.
Think very much Michael for your prompt response. I called that number around 9pm and left you a voice message. I’m not sure what’s your business hours. In case we don’t connect prior to CG Service’s call, how should I respond to their request? I know they record the call, should I decline all their payment option tomorrow?
I looked at my credit report as well as my wife and noticed that most of the debt is showing under her. At some point she was an authorized signer, but never a co-applicant. Last year I removed her from all my credit accounts. Why are they reporting the debt under her name when she is no longer an authorized user? Her credit score had been severely damaged. Went from 750 to 600. Can they report those debt under her?
I can talk to you more about the credit reporting on your wife when we connect on the phone. It is a process, but you can remedy this too.
I would simply tell GC Services you are still looking at all of your options and trying to figure out your finances and are unable to commit to anything yet, but you will be in touch as things take shape. Be polite, but cut the call short of any other probing questions. You are not declining offers. You are just not sure how to approach your debt, and not just with GC Services (they can see you are late with other creditors).
I can call you back later this morning. I am on pacific time in north Idaho.
We have 3 substantial balances with 3 major institutions that we would like to negotiate a full payoff. Here is the kicker, none of the institutions opted to send the unpaid balances to a collections agency nor did they opt to sue us. The amounts are 58K, 12K and another 12K and were all used for business. I think I heard gasps from everyone, but please understand. We had NEVER been late on any of our financial obligations but used Bank of America, Chase and BB&T to help consolidate with Promo offers debts that we incurred from our business and working capital. We had always paid things off in lump sums because our income was great but then the economy tanked in 2010 and so did our business. With one more pay check we would have been out of debt yet once again for the hundredth time.
It just so happens that a new bill was going into affect at the same time the economy was failing to protect consumers from credit card companies taking advantage of consumers by offering them a great promo rate with great terms then of course if you read the fine print on the contract where it says they have the right to cancel, change and blah blah blah any time they want. Before the law took affect, guess what? We received letters from all 3 institutions telling us they reserved the right to cancel the promo rate/terms and our new payment would be $***** the thing is, our affordable payments increased more than $200 – $600 per month overnight. I immediately got on the phone and asked them to work with us because we were watching our business fold and wanted to continue to pay what we owe. They refused to work with us and from that very day we stopped paying so we could continue to have a roof over our heads and our modest cars.
My husband sold businesses for a living and with a poor economy, recession, job loss and scared/starving US Citizens, his business was completely void of any future that we could see. We started slowly rebuilding in late 2012 and now have plenty of income but our credit is dinged big time. We look great in our bank account but on paper we look awful. We have not been late on our mortgage in over 4 yrs, both cars are now paid off and we have one open credit card with a $0 balance that is only used for medical. Oh yes, I forgot to add that we also lost our insurance because at the same time as everything else was falling a part in our life our insurance premium went from $350.00 to $980 per month over night.
We refused to file bankruptcy because we knew we could eventually settle our past debts or they would eventually just fall off our report which is where all this was leading up to. As of today, I pulled our credit scores and they are over 650 & range into the 700’s but the lending institution says that is not what they are showing on their Equifax report. We have 300K + in liquid assets and nearly 400K in other assets but what that credit report says is ruining our life! We want to purchase some land nearby and build a home but do not want to use all of our liquid to do it.
As it stands, BOA, Chase and BB&T within 3 months completely charged off our debts in 2010, they sent letters saying they were not going to try to collect and never sent the debt to any collections agencies. Is this good? Is this bad? We are not sure. The IRS of course received a 1099 for the debt since it is seen as income and we currently owe 20K to the IRS for that 1099. Truly people, this is not a big deal to us because we do owe it, it’s our debt and we are blessed that we have bounced back unlike so many other American’s from the nasty recession.
There are a million and one stories out there just like ours. But here is our question. If there is not a debt collector and the lending institutions, is it possible, felt as if they had no right to request their money back because my tax dollars were used to bail them out (remember that mess?) that they simply charged it off and allowed us to deal with the aftermath. So where do we go from here? We want to pay them off, yes they will still show on our credit but they will be paid. Will our scores increase with paid charge offs? Does anyone know the answer? Bottom line is, we want to negotiate those debts but in doing so with the institutions themselves could cause the old debt that may drop off by next year to be reported all over again with a brand new “start” date. We can pay lump sums but we simply will not want to pay the sums that were charged off. I know we can negotiate and they would like to have something instead of nothing at all. Where do we start? In a huge snotty greedy corporation such as BOA and Chase, who do we call or talk to? A customer service rep. is going to go by the usual script, we need someone above the script that can talk to us outside of the box, a real decision maker.
Any and all advice would be greatly appreciated. Thanks
It is still possible to settle with all of the banks listed even though they sent 1099c’s to you and the IRS. I have done those, but it can be a real bear, especially with Chase right now.
No settlement or payment is going to restart how long these old collections can stay on your credit reports. But done incorrectly you could restart the clock for them to sue for collection.
Call me for a consult before you do anything Tracy. I will cover how not to reset the SOL. You may put your goal on hold, or what I share may give you encouragement to move forward with your plans. You can reach me by filling out the consult request form at the top, or call me at 800-939-8357, option 2.
I have some accounts that have been turned over to a coll. Agency. My goal is to get them removed from my credit reports. I also owe the original creditor (medical) amounts that haven’t been sent to coll. yet & i have just set up to have auto bank draft monthly for those that still remain w original creditor. I know the collection agency works on contingency, but original creditor still referred me to them for the amounts that have been ‘turned over’.
I don’t want to pay agency as it will still reflect in my report & to my understanding if original creditor is paid then agency has to delete (they are the only one reporting). When I set up my payments with the original creditor for bills that are still in house I was informed I would have to call back to let them know when debt was paid in full so they could stop drafts. My question is should I just continue to allow drafts until my collections amounts are paid then inform original creditor?!
This is an odd situation you have going with your medical debt. Systems are set up to allow a set number of payments, and the service provider or medical billing company should not need to be told when you have paid your bill.
Who is it you are dealing with?
How much are the balances being collected by the agency? How many more months would it take to continue those payments to pay off all of the bills they sent to collection?
Hi,
I have a charge off with BBT credit card. They are still the ones collecting the debt. I have been paying $100 per month for the last year. The account still says Charge off of course. I have tried to negotiate a payoff to settle the account but I have been unsuccessful. I owe about $5000 and I have about 50% of this stockpiled. They won’t budge. What can I do?
Thanks!
If it were me I would stop paying the $100 a month and let a month or two go by before negotiating a lumps sum settlement with BB&T.
Dear Michael,
A conglomerate bank stopped accepting my electronic payment approx. 16 months ago.. I received 3rd party letter to claim debt by month-end. Please advise.
I am no match for phone conversations or negotiations at this time. I tend to over-commit beyond my actual ability to pay which is why I had a credit card. I did not need this but I thought I could handle one. I am barely self-sufficient and have yet to recover financially and return to the full-time workforce.
Thank you for this section of information as well. I wonder if I should write to dispute or wait to have a free consultation?.
Who is the bank? What is the approximate balance owed today? Who is the debt collection agency?
I do not recommend disputing a debt just for the sake of it. It can lead to a higher risk of being sued.
I can offer better feedback once you post answers to my questions.
Bank: Juniper /Barclay
Amt: 10K+
Forster,Garbus &Garbus
Thanks.
Okay, thanks. You are at a higher risk of being sued based on what you have shared.
Can you pull together 40 to 50 percent of the balance owed in order to settle with a single lump sum pay off? How long would it take to raise that amount?
Thanks for the honest feedback…
That would take locating a position at double the pay or more and about a year.
Michael,
Dear Michael,
I used to pay all my bills on time and never missed a payment until 2011. My husband had a brain haemorrhage in 2009 which changed our life and situation. In 2011, I moved back to India so that I could take proper care of my husband.Unfortunately, he did not recover and passed away last year. I want to come back to the United States and settle my charged off debts. I do not know how to begin. How to find addresses for authorized debt collection agencies for the debts I owe.
I need your help and guidance. Can you provide me your official email address so that I can provide you more detailed information…Thanks & regards..RM
I would start with looking at your credit reports and look for any creditor that shows your unpaid debt with a balance still owed to them. That generally means they have not sold the account. You can call the creditor and give them some personal identifiers and ask who they have the account out with for collection. If the account is not places at that time you can sometimes deal directly with the original creditor to settle the account.
I would then look at creditors that are reporting a key derogatory, but who show zero balance due to them. This will typically mean they sold the legal rights to your debt. You can then look to match up balances that were charged off by your creditor with any collection agency showing on your credit reports. If you cannot find any additional collection agencies showing for accounts the creditors is showing a zero balance owed, you can call the creditor and ask who they sold your account to. Banks and lenders will usually tell you the name of the company and provide a toll free number.
Why do you want only the addresses of the debt collectors?
I am sorry I don’t just the addresses.Let me send you more detail info so that I could better guidance from you…thanks
The email address you get these comment notifications from is mine.You are welcome to send me details that way.
Hello, I surrendered my vehicle to Exerter Finance because I lost my job.They sold thevehicle in an auction that is way less than the value of the car causing me to owe them $19,000.00 which is now showing late payment – Charged off account. How can resolved this without filing bankruptcy? Thank you.
Settling for the lowest possible amount that can be negotiated is often the best course in a situation like yours.
Call me for a consult about what settling would look like for you. You can reach me at 800-939-8357, option 2 rings to me.You can also fill out the “Talk to Michael” form in the side rail of this page.
Hi,
I am back! I just wanted to let you know that everything worked out. I covered our collection with NAR.inc and they did removed the negative remark in my husband’s credit score. We had to wait a whole month for the removal to be updated with TransUnion, but everything was settle without any issues. Thank you for all your advise it guided me to the right path during this process!!
That’s great Blanca, and congrats! Thanks for posting the outcome too.
Hi! Lost my job in 2011 and used my Wal-Mart card (not visa or anything, just Wal-Mart) to eat then couldnt pay. It eventially was charged off then went to collections. That was years ago. Now Im back on my feet and I want to pay but both Wal-Mart and the collection agency say theyre not collecting payment. So what do I do now? I have the entire amount and want to pay but it seams there is nothing I can do. This is the major factor killing my credit and keeping me from getting an apartment. Thanks a ton for any help.
Who is the debt collector showing on your credit reports for this account?
Its says syncb/ walmart on my credit report. When I called Wal-Mart to try to pay they patched me through to a different agency (dont remember the name) who I believe was the debt collections. They were the ones that said they were no longer collecting on it. The Wal-Mart operator said they couldnt answer any info. Ill call them back and write down the collection agencies name in the morning. Ty
HI Michael, I got a reply from you regarding American Education Services, and I want to open it but I can’ recall my password. I tried resetting it but nothing happens. can you help me recover my password?
You do not need a password. Just go to this link: https://consumerrecoverynetwork.com/question/aes-student-loan-debt-collector/
Read that page and post in the comment box on that page the same way you do this one.
Hi Michael,
I am a 51 year old woman and thru tough times have created this !
So I have approx.. $32000 in credit cards and a car loan that was reposed
CapOne:$14,000 and collection agency has the account.
Chase:$3000 a collection company has this too.
Chrysler: $12000. car repossessed
All state Insurance: 995.00
And I have a $1200 school debt.
Plus $29,000 in Fed Student Loan which I pay $181 per month on.
I am not sure what I should do to pay them them off.
Please help
Donna
How long has it been since you last paid CapOne or Chase? Who are the collection agencies that are collecting on those accounts?
When was the car repossessed?
Can you pull together money to settle the collection agency accounts? How much money can you put together now? How about over the next 6 to 12 months?
This post has been moved to a new page.
Your post was moved. A new post about dealing with MRS Associates collecting for AES on your student loans was created.
i was sued by a creditor- i went to talk to a lawyer who had agreed to help me. It was about a 2400 debt and they were agreeing to settle for about 1000. I wanted to hire the lawyer for about the same amount of money. I met up with a lawyer who was really nice and a good attorney. I wasn’t ready to set it all up then as I was a little sick. We rescheduled but then I asked to sign everything the next day. I got ready to pay and sign documents, yet the lawyer called me an hour before I was to meet telling me he didn’t feel he could represent me because he said that i stated I had no intent to pay back the debt I had bought on, and he only works with consumers who fall on hard times or lost a job. Again I found it all kind of strange- that had i signed the paperwork he would’ve taken me, plus, im sure I probably did fall on hard times but at the time wasn’t good with credit. the whole situation seemed like a very weird experience. He said I should call the other attorneys I talked to about it.
I’m not sure why someone would even do this, but in my case would settling be the better option then at this point? the other lawyers I talked to didn’t seem like they knew much about what they were talking about. What are my options maybe writing to get them to validate the debt?
Don’t request validation of a debt you intend to settle. It just monkeys up the process. Call me for a quick consult on what to do next. You can reach me at 800-939-8357, option 2 rings to me.
Ok I spoke to them and they will remove it without any issues once it is paid.
The reason for it, seems like workers compensation was denied and the bill sat there for several years. The time that he got hurt was during work and the same company took him to the doctor, how could it still be denied? Do you happen to have any ideas if I still could dispute this or is it too late it was back on 2013?
Ok, I was able to pull his report from transunion,, but it has not been updated and I am not being able to see any information about this debt. I looked up more information about NAR INC. and it seems like it is link to North America Recovery. I called them yesterday but they were gone for the day, before I call them again do you have any suggestions on how I can dispute this and settle it quick because we already got denied a loan because of it and we need to move before April. Thank you so much for all your help!
You bet you can dispute it, or settle it quickly. I would just want to know more details about the underlying debt before I did anything.
Recently me and my husband have been looking into getting a house. We do not have credit because we are still trying to finish school and have tried to stay away from loans. I went online to check our credit scores and this is what I found on his profile:
NAR INC N/A Collection/ Chargeoff $454.00 Feb. 22th, 2016
I have no idea where it is coming from. We have not been contacted at all, and I really need to figure out how we can settle this. Please HELP!
You can call the toll free number for NAR INC that should appear on his credit report. Find out if this is North American Recovery. Ask the debt collector what the debt is all about. Post an update reply with the details before you take your next step.
Does your husband have an outstanding medical bill to your knowledge?
We have not been able to request a credit report because it seems like we can not verify his identity. I do remember him having a 60 dollar bill due in our local hospital and when we tried to pay it online it would show as pending so I figure they were disputing with insurance. After that, we never did received any notices about it being in a collecting agency so we were not aware of it at all! I just tried to request his report again and every time we come down to the security questions we are getting an error.
You will have to make the request in writing. In a situation like this you often want to include a copy of the drivers license and a utility bill.
Hi Michael, my name is Deborah and I have a credit card account with Premier Bank. This is a secured credit card I got to increase my credit score, however it did just the opposite, I say this because I started out paying on the card on time faithfully until one charge I made allowed me to get behind and I was never able to catch up on the payments because I got further and further behind in my payments. My situation now is that the card balance has been sent to a collection agency. The agency is Rushmore Service Center. The I want to pay it off, however I am not able to pay a large payment each month. I want to know all of my options. I also have a problem with judgements and balances with my former husband on my credit. We signed jointly on a home and car earlier before we later divorced now I have these debts on my credit. Any assistance in this matter would be greatly appreciated.
It would help to know the amount Rushmore Service is trying to collect. Post the balances owed on all of the collection accounts you have and also let me know when the last payment was made on each account.
My feedback will be more detailed with that information.
Ok. I haven’t called Target back to tell them which option I’ve chosen, I was waiting for your reply so thanks for doing so. So besides it being morally correct to pay full balance rather than settling on half the amount neither one will have no big effect compared to the other.
I thought I had read that future creditors may look at someone who has paid the full balance off on a charge off more favorably then someone who has settled a charge off.
It is conceivable, but that means you have someone “hand underwriting”. There is far more automation in the underwriting process today, and to the point where the full pay is just not significant like it once was.
Ok thanks for the info. I noticed I had a Target credit card that was charged off as well with a balance of $550. I contacted them and they said they would so a lump sum of $280 and that my credit report would update to paid (maybe she said settled) but less than balance owed. Also gave me option of paying 6 equal installments of full balance and report would update to paid balance in full. Which one would help me the most if either? Also asked about getting it in writing but said they couldn’t because of statue of limitations in Texas had passed. What gives?
The SOL in Texas passing has nothing to do with documenting a settlement. I would take that issue up with the collector’s supervisor when you call back. Let me know if there is still a problem.
You do not really get an extra boost from paying charged off debt in full compared to negotiating a lower payoff. You get the account updated to reflect a resolved collection either way.
Ok, so if contact Capital One and settle both cards with lump sum offers what am I expecting the monthly payment history to show rather than “failed to pay” for each month? From what I gathered from the video the term “charge off” will always be there.
What percent of balances should I strive for?
I generally target settlements on Capital One accounts at 50%. Get everything you negotiate in writing before you pay. Once you pay your credit reports will update to show as paid collections. Your credit can bounce back stronger from that point.
The late pays and charge off do stay for up to 7.5 years from when you originally stopped paying. But your credit is not held back for that long.
I have 2 Cap 1 credit cards that were charged off. On my credit report they say the accounts are closed and show payment status as late. Both cards are showing “failed to pay” under payment history for Feb 2016. . One card shows status updated on 1.1.12 and the other card says 10.1.12. No where do I see a collection agency on the report for these 2 accounts. How do I clear these accounts up and have them update payment history to current.? One card has a balance of 1500 and the other 1000. Thanks.
You cannot settle the Capital One accounts and get them to show as current. You could not pay 10 times what you owe and get the accounts to show that. I just put up a related video about paying collections to remove a charge off. Watch that for a good understanding of why negotiating a lower pay off is all that you need to make progress with improving your credit now that the prior damage cannot be undone.
Hello Sir,
I have disputed quite a few medical debts and had a bunch removed.. I still have the ones below and was wondering if you could provide any insight. Settlement options. If you have worked with any of these companies how are they to work with?
COMMONWEALTH FINANCIAL $1,857 Oct 28, 2014
CREDITORS COLLECTION $372 Sep 14, 2010
STATE COLLECTION SERVICE $56,428 Dec 02, 2011
DIVERSIFIED SERVICES GRO $2,236 Oct 27, 2011
MEDICAL BUSINESS BUREAU $466 Apr 20, 2012
ARMOR SYSTEMS CORPORATION. $966 Aug 20, 2012
CREDITORS PROTECTION SVC $694 Aug 13, 2012
NORTHWEST COLLECTORS INC $615 Nov 05, 2010
REC SOLUTION $610 Feb 02, 2012
STATE COLLECTION SERVICE, INC $610 Nov 07, 2013
The dates are the last time they were reported. Any info will help.
Thank you!!
Were any of the medical bills covered by insurance? It can be a bit more difficult to negotiation lower balance payoffs when that is the case. I have a page up dedicated to negotiating medical bills.
What is the 56k balance with State Collection Services all about?
I need some help. I have an old debt with Bank of America. I have an outstanding balance of $3603. I want to know if there’s anyway to have the derogatory comments removed after I pay the debt?
When did you stop paying Bank of America? Who is the collection agency handling the account now? Is anyone else showing on your credit for that same account?
Let me start by saying that I live in Missouri. A couple of days ago, in searching online, I found that a lawsuit has been filed by Gamache & Myers P.C for the current owner of Midland Funding LLC, where the prior creditor was Citibank. Today, my mother stated that a letter had come for me from Gamache & Myers (she won an appeal against them so she knew who they were). I advised her to read the letter to me, as I don’t reside there, & it was dated 5 days ago & stated that they were in the process of instituting a suit against me, it should appear in court soon & to call if would like to discuss matter. BUT I haven’t been served yet AND it is already in the courts. It is stating the balance as $ I have not received any letters prior, anywhere.
I did have a CItibank card in college & honestly, I don’t remember when a ‘last payment’ was made. I got the card in 2006 & I wanna say that 2012 may have been, & that it taken care of. There is no balance anywhere on their letter.
I went to my credit reports & there is nothing on them from CItibank. Nothing that says charged off, closed, transferred, sold, last payment, etc. CItibank is no where on my credit reports. BUT there is Midland Funding for 6/15.
SO, (sorry for my rambling) I need assistance on what I can do from this point &/or how to do it? I would appreciate any & all suggestions.
You were not clear if Gamache and Myers has filed the lawsuit, or the letter your mom read to you is the typical precursor to a lawsuit.
If just the dunning letter you may want to use this opportunity to dispute the debt as paid if you know it was. Let them then go access data that says otherwise. Citibank has long been one of the better banks at providing account statements and historical data to collection agencies, and that does include debt buyers like Midland Funding.
If a lawsuit is going to progress than you will have an opportunity to draw out all the facts and account history through the discovery process.
If you last paid, or the account was charged off in 2012, it is odd that all of the credit bureaus do not show the Citibank account on them.
Yes, Gamache & Myers has filed the lawsuit, before the letter was received, but I have not been served yet. I thought the same thing about it not showing up on my credit reports, but there is nothing from Citibank on them at all. Midland Funding shows up on there with a date of 6/15 to be cleared 8/19 & amount of $2326.
At this point, seeing that Gamache & Myers filed, but yet receiving a letter after that says they are in the process of instituting a suit, I don’t even know what to try to do or how to go about them. And even more confused that Citibank is no where on credit reports. I’ve looked all through the reports
Since the letter says to call to discuss, even though they already filed the lawsuit, is it too late? With Citibank no where on my credit reports, should I just go to court?
I know that the amount stated on my credit report from Midland Funding isn’t enough to obtain a lawyer.
Confused is an understatement!
You can still call Gamache and Myers.
With Citibank nowhere on your credit reports I would first look for any old statements I had and cross reference those with payment from my bank account. I would want to determine, to the best of my ability, whether this was a paid account and sold to Midland by mistake, and before calling the collection attorney.
If the amount being collected is legitimately owed, settling with Gamache and Myers could cost less than defending the suit.
Hey, I just pulled my credit 1/10/16 and found two medical bills back from 2011 and both are in collections. I thought I got them removed but some how got back on. I have one for 629 and one for 889 both which were co pays for hospital and doc visit. What can I do to get this off. I have called both and they said they wouldn’t take anything less than amount owed. I did dispute this back in 2012. Thanks for any help.
Are you negotiating with the medical billing company or the medical service providers office staff? Do you have the money to pay the bills and care most about your credit reports?
My family encountered some medical issues and I fell behind on credit cards. I have two charge-off accounts which are approximately 1 year old:
HSBC for approximately $3,400
Bank of America for approximately $9,300
My work situation has stabilized, I have cut many expenses and have managed to save up some cash that would let me try to settle with both creditors.
I contacted the last collection agency I received correspondence from, and they said that the “Account is no longer open”. They would not indicate whether the debt was re-sold or returned to the lender. I am unsure how to proceed. Should I contact the credit card company directly, or wait until the next round of collection efforts starts? Any advice you have would be appreciated.
Who is the collection agency you are dealing with? Which account were they collecting on?