Can I settle with Client Services, who is collecting unpaid credit card debt for Chase?
We have negotiated a settlement with a collection agency called Client Service Inc. (St. Charles, MO) for a onetime payment of $6,000 against a $26,000 Chase credit card debt. Its a 22% settlement.
Client Services represents Chase (confirmed with Chase) now that the debt has been charged off (Chase still own the debt) one month ago.
Negotiating this amount was surprisingly easy (wondering now if they would have accepted less?! Oh well.....) whereas Chase refused to settle for less than 85% for the 6 months before charge-off - and we offered them $10,000!
Client Services has emailed us their settlement letter which states: "In an effort to resolve this account, your creditor has authorized our office to extend a reduced settlement offer on the above balance due. The current settlement offer is outlined below. To accept this settlement offer, please make the initial payment by the date listed beside payment 1. This offer is contingent upon timely receipt of the 1 payment'.
This is the entire 'language' however the letter also states who they Client Services is, Chase as the creditor, the amount of the debt, account number, the settlement amount, when the payment is due and contact info.
I told the collection agency I was uncomfortable as it does not explicitly state that the payment is 'full and final' or make reference to zero balance upon receipt etc. - so I asked for that language to be added. They refused, saying they can not alter the Chase-approved letter in any way.
Do you think this letter is legit and it really is a full and final settlement with both Chase and the CA? Should I go ahead with the settlement (wire transfer of funds - coming from my sister in Europe) - my sister is an attorney (overseas) and says this letter would not be acceptable (insufficient language) in her country - but this is the US so maybe it is good enough? We are nervous we'll pay the money but still be 'on the hook' with Chase or CA for 'more'?
—Boomerang
I recognize the letter as being a consistent offer for a charged off Chase credit card with Client Services. The settlement letter does appear to have all of the necessary elements to an agreement for settling the Chase debt through an assignment debt collector. The settlement agreement documentation is what you need to beat somebody over the head with if something were to develop later on. Well, the letter and proof of timely payment.
You will need to have a copy of the funding transaction along with the settlement letter.
If any further collection efforts were to occur by mistake later or your credit report were not updated and still showed a balance due, minus the settlement payment, 60 days after you pay the Chase settlement, you will use the letter and payment proof to correct any errors.
Here is some light reading and good detail on what to look for in a debt settlement letter
Settling Chase Credit Card Debt with Client Services
Leaving Money on the Table
This low of an offer is not the norm. Anyone reading this should not have expectations of 22%. It’s obviously possible, but not probable based on a host of ways Chase may view your account behavior prior to defaulting on payments. The debt collector may use sophisticated software, or manual review of your credit profile and public assets etc., in order to target a higher settlement percentage.
It is sometimes fun to point out the oddity that happened here with your Chase account. The bank digs in their heals at an offer you cannot afford to pay. Chase sends the debt out to a debt collector who they will typically pay 15% or more of what they collect for Chase. Client Services goes to the floor on the settlement and gets less than Chase could have gotten in settlement direct with you, and gets to pay Client Services for the privilege of collecting less than was available.
You did well. Congratulations for clearing a healthy sized debt!
Readers dealing with debt collectors like Client Services are welcome to post questions and concerns below for feedback.
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.
Hi Michael. I have a similar problem as Boomerange. I had a debt with Chase for almost 20k and had to stop paying about 6 months ago. Recently I was able to settle with them for $8841 before charge off. This money would be a loan from my sister who is an attorney, and would be paid off in 4 monthly payments. Chase however, refuses to put that agreement in writing telling me that everything is being recorded, as if that is supposed to bring me piece of mind. My sister thinks it sounds sketchy and is a red flag. I agree. I did receive an email from them informing me about the first payment that would be deducted from my account in the agreed upon amount but it did not include the number of payments nor the final amount due. I’m worried that once they get the 4 payments they will come at me for more. I spoke to someone in the charge off department at Chase and she told me they put their settlement agreements in writing and send it out. That way actually sounds safer. What are your thoughts?
It has been a long time since I ran in to a situation where Chase bank refused to put a settlement agreement in writing. I wonder if this is just a Chase representative randomly ignoring normal Chase procedures, or a sign of something systemically worse returning to Chase.
I would escalate your concerns up the management chain at Chase.
I would also consider calling them to go over all the settlement details on the phone again, but this time record that part of the call. I would tell them I am recording the call and why.
Please post an update with how this turns out.
Hi Michael. I’d like to let you know that I finally did receive a letter in the mail from Chase that confirmed the settlement amount and how it would be paid. It came after the first payment was made. It seems odd to me that a financial institution such as Chase could not have just sent out an email or letter confirming the settlement agreement beforehand, but at least now I have peace of mind.
Thanks for posting the update, Carly.
Hello Michael, I had a Chase Credit Card, which went into collections by 2007. I was living in Texas at the time, but moved to Oklahoma in 2008. During my residency here I started with a $2100 balance (Credit line 2500). The collection agency wanted to settle, but due to my Divorce, I was not financially stable. On the contrary, still not financially stable. Now, the total for the card is at $17,000. They are garnishing any amount from my account that is used for supporting my family, and and I receive low income assistance. I don’t know what to do. I really haven’t received any documents since 2011. Also, every two years they will take the funds from my checking account. And they are pulling a inquiry on my credit every two years. I am at my ends whit with this collection company, in OKC. Should I call them, because I can not afford 17,000 when the account was at a balance of 3000 owed. It has been over 18 years dealing with this Chase credit card. Thanks for your help and response…
This is a court judgment. The court appears to have granted interest on the judgment.
Check out my video about avoiding garnishment and bank levy.
Hi mikchael, I owe chase business card 31500 today’s 141 day behind , business is closed but I still reliable i think for the amount I offer settlement twice for less , representative said my account not eligible after trying to process my application and he offer hardship plan or to split the large min payment I told him I won’t be able to commit to hardship plan for years with large payments
I’ll fall behind again i don’t have w2 income financial life not stable i lost my income due to covid 19 even the min payment i won’t be able to come up with , and I’d like to take care of that and to see my options
So i ask to speak with manager to confirm that and make sure where I’m standing now before my last option (bankruptcy) he just sent me a message with his representative (settlement is not an option account not eligible period? ) not sure what to expect next little confused should I wait and try again later, if chase won’t accept settlement ever or planning to sue me or it has to be with collection after charges off 180 days.
Is there an option you suggest to resolve it before it gets worse since I’m in real financial hardship with little income from unemployment and I have a friend + family member they willing to help me and land me some money to take care of this issue but they won’t be around for long people situation change often.
Should I wait or try again or accept hardship plan for now even I’m sure i won’t keep up with.
I’ll appreciate your response and suggestions thanks mikchael.
Sorry Michael I noticed I misspelled your name i didn’t mean it and I apologize
If it were me, I would wait to settle in a few more months. We have help available if you need it.
Thanks Michael for your fast response ,
Do you think I still have chance to settle this account even chase the Creditor refuses to settle. If so when ,
if they send it to attorney office not regular collection company right after 180 days do I still have chance to settle with attorney or those guys just sue people first.
I watch some of your very useful YouTube about Creditor they target some account to sue based on the amount.
What’s my chance if you help me get it done , what’s your target or guess on the settlement % with chase
Thanks again Michael I really appreciate your help
Yes, I am confident you can settle. When is a question I would likely need to talk to you about first. You can schedule a call with me here: https://calendly.com/debtbytes/15min
I can talk to you more about what target I would expect for settlement on that call. It can vary depending on how collectable you look. With Chase it is often between 20 and 60 percent of the balance.
Chase already has a judgment against me. Would I be able to negotiate a settlement at this point?
Check out this page about negotiating judgment debts.
I have agreed to a settlement with chase for $2112 . the total owed was $4120.00 Now I regret agreeing to the settlement. My account had gone to a collection agency but when I wrote the agency a letter for deletion, Chase took the account back and started calling me. Now I hate I made the agreement. The debt is already a charge off on my credit. What could be worse?
If you had settled your Chase account with Client Services you would still have a paid charge off on your credit reports the same as when settling directly with Chase.
A paid collection account still allows you to accomplish credit and finance goals.
Was this the only unpaid collection account you had?
I have a Chase card that charged off. It went to two agencies and now is with Client Services. I want to pay in full and try for delete. I want to restore Chase relationship. CS said can not do PIF. Any suggestions?
What is the balance owed?
The balance is 4400. I want to pay because got relatively clean credit report and when I applied for Chase card, they cited this past balance in recovery.
Chase may continue to decline new credit for you after paying them in full, but I get the reasoning.
Client Services is likely not credit reporting, so there is nothing to delete if they aren’t, and they are in no position to say yes to that for Chase.
Chase does not do pay for delete, but they will update your credit to show a zero balance owed.
You get no extra credit score nudge from paying in full, or paying less at this point.
i was hoping that would mean the full debt would be considered paid in full
No, it would not mean that.
Is this an effort to get Chase to show this less bad on the credit reports? Check out this video about paid in full vs paid for less.
What if you pay the settlement amount and on reverse side of check you write when endorsed paid in full.
What are you trying to accomplish with that?
In your experience, is there any way possible to have a Chase charge off removed or acct deleted? For a pay off? Acct is just over 7k and with client services now.
Client Services would not be able to negotiate anything related to credit reporting, and Chase does not do pay for delete.
Hello Michael,
I just got the Debt Validation Notice from Client Services. I owed Chase bank $3000. I haven’t made a payment in 6 months and looks like it’s charged off and now with Client Services debt collector. Should I contact the Client Services in an attempt to settle or should I wait for a settlement offer from them?
If you want to settle a debt, and are prepared financially, I am a big fan of being proactive by reaching out, and not waiting for them to come to you.
If I settle with Client Services will that be the end or could they sell the remainder of what I owe to another debt collector. I currently owe 11,500 and they are willing to settle for 2200 which I’m ready to pay but I’m worried that they would sell the remainder to someone else and then I’d have to pay that too. Is that possible?
Who is Client Services collecting for? Is it Chase? Chase has not sold debt since 2013.
Be sure to get your settlement in writing before you pay.
Keep a copy of all payment records too.
Anything weird happens after that, you have what you need to correct any later efforts to collect, and any credit reporting errors too.
Received a $6250 settlement offer from Mrs Associates on a Chase credit card balance of $12500. It is a 50% off the total offer. I haven’t made a payment in 6 months and looks like it’s charged off. As it stands now, I will not be able to make that one time lump sum in the time that is stated in the letter. Letter states they can rescind the 50% offer and require full payment. How often do companies rescind offers. It is possible they go lower in negotiations? Do you think they might offer a lower amount based on your experience with this company? And how often does this company sue for judgment? Thank you for your help and time. It is a blessing amidst all this chaos.
I think you have a great shot at settling this much lower, and getting some time to pay rather than a lump sum.
Do you want help with this, or are you going to do this yourself?
I appreciate the timely response and your help. I plan to address this issue on my own. What settlement range should I consider targeting? Thanks again.
Just having charged off you could be looking at between 25 and 45 percent. The lower end of that is typically more common with getting some help, but in the COVID environment you may have a shot at that range.
We can all be viewed individually by collectors. The more your credit reports show things are still going somewhat right for you, the harder it can be to get great settlements sometimes.
I just got a letter from Client Services as well. I have a total of $22k across 2 Chase cards and they are offering to settle for 40% of the amount. I’m wondering if I can request them to have it deleted from my report in exchange for slightly higher than the settlement amount? Would it make any difference now if I paid the full amount?
It would not make a difference if you paid 100k on these debts Client Services is collecting on. Chase will not be doing anything other than updating the accounts to show a zero balance owed, paid collections.
Your credit can bounce back with paid collections on there.
Thanks Mike. I just got off the call with Client Services and they echoed the same – they’re a middle man and won’t deal with credit reports/bureaus themselves. I’m guessing “debt settled for less than full” is worse compared to “debt paid in full”? I haven’t been able to make any payments in about a couple of years. Would the missed payments continue to have a negative effect on my report?
Check out this video on this topic: https://youtu.be/Q7nwb8PvzPk
Michael-
I’m trying to settle a charged-off account with Chase with an original balance of $2147. They have offered a settlement amount of $859, but so far have refused to send me the terms in writing until I agree to the settlement and provide billing information. They have promised that the billing will not occur until a date/time we have agreed upon, but I am concerned about getting the specific terms about the credit reporting in writing. So, two questions. First, is this a good settlement amount, and second, what/who/how do I speak with them to get these terms in writing before committing to a payment? Thank you for any assistance.
If this is Chase directly, it is not uncommon for them to want to record the payment prior to initiating the letter to go out. They do send the letter, and I typically suggest setting the payment a couple weeks out to allow for the mail to arrive prior to the payment date.
Some will record the phone call going over the details of the deal just for some additional assurance. There are free apps you can use.
I would tell them I am recording and why.
Thank you Michael, knowing that’s been your experience makes me feel much more at ease. Do I have any chance of negotiating a PFD or a ‘paid in full’ with them? Trying to do what I can to resolve this without causing further damage. I’d love to ask further questions, if it’s possible to setup a consultation with you directly?
I also received a letter from them regarding a Chase account. The offer is an acceptable amount and I am willing to pay it. I have a few questions, however:
1) My credit report doesn’t show it being sold to Client Services. It still shows it with Chase but charged off. Should I be concerned about that?
2) I had a second card with Chase and haven’t received an offer for it. Did they likely place this card with Client Services, as well? Not sure what to expect.
3) I still have 4 other cards with other companies. I have not received any offers on those cards. Any point settling the Chase card if I still have these cards I can’t pay?
Thanks!
It is normal to have a creditor still show on your credit report as a charge off, and with a balance still owed, but not have Client Services showing on your credit report. The easiest way to verify Client Services is authorized to collect is by calling Chase and confirming it.
Chase has relationships with many third party contingency collection agencies like Client Services. I do not think this other account is with Client Services. You can call Chase to find out who they have it with. I probably have a page up about that other collection agency, so be sure to use the search box in the upper right.
As far as your other accounts go, what are the balances and who are the accounts with?
Thank you so much for the information. Appreciate it. I will call Chase for more information and to verify.
All accounts right now:
1. Chase $1544.00 (this is not the one Client Services is trying to settle)
2. Chase $9279.00 (this is the one they are offering a settlement on)
3. Discover $5020.00 (haven’t gotten an offer/not sure who it is with)
4. Wal-Mart $367 (sold to a collections agency)
5. Target $511 (have not heard anything)
The weird thing is I also had a Citi card with a high balance but it isn’t showing on my credit report at all…any idea how that could happen?
Thank you so much for your help.
I would target between 20 and 40 percent on those Chase settlements, and that includes the account Client Services has.
Discover and Target I typically target at 50% of the balance for settlement, but there are reasons to shoot for 40% too.
If the WalMart account was sold off, let me know who to?
If your goal is to settle debts and put this chapter of your financial life behind you, it does make sense to get the out of the way as soon as you can. Most people do the settlements one by one, and as they say up money to handle the next agreement for less, and the next, etc. If you have some other sources of money you can use to negotiate the debts all at once, or quickly one right after the other, I do recommend that.
You should not expect to get offers out of the blue on these. You have to be proactive and reach out to negotiate the settlements you can afford.
As far as Citibank not appearing on your credit… it happens, but it is not all that common.
Does Chase update CR after settlement with Client Services? How is it reported? Will it decrease the balance of revolving accounts increasing the CS?
Chase should update your credit report to show zero balance due. It will be a paid collection. That is all you can expect from Chase, and its all you need to start recovering (if you have no remaining unpaid collections).
Some people see immediate credit score increases when they resolve collection accounts, while others could see no immediate impact, and some even see a slight decrease temporarily. It can vary from one person to the next.
Michael, Citibank charged off my $7110.00 debt April 26th, 2016. Client Services, who represents Citibank, contacted me this week and offered a settlement of $3345.00 which I have to admit is a fair offer.
I countered with a $1000.00 lump sum, this was rejected. They are giving me to May 13th, 2016 to pay the amount quoted to me, and if no agreement, I was simply told “they would work on something else”.
I can probably come up with $1500.00 to $2000.00 lump sum as a second counter but no more.
Do you have any suggestions?
You can get a better deal negotiated with Client Services, but 2k is probably out of reach. Give me a call to go over some details. I want to see if you have some good talking points for negotiating a really dynamic savings. You can reach me at 800-939-8357, option 2.
Michael, since I wrote you, they came back with 2,775.00 a day later. They appear to be very cordial and non intimidating. I would still like to get this much closer to 2000.00.
I’ll give you a call to discuss. Thank you.
Michael since we last spoke, Client Services on behalf of Citi Bank came down to $2491.00 and I came up to $1800.00. The debt is $7110.
So there’s $700.00 separating us from settling. They offered me too pay the $1800.00 and make installments to pay the remainder, I am insisting on a lump sum.
They want me to call back Monday, the 16th with an answer, This would be 2 weeks since my initial call with them. I can offer $2100,.00 and see if they would split the new difference of $400.00.
Your thoughts?
The 35 percent that Client Services has on the table now may be as good as it gets. But there may be room to get them closer to 30%, or roughly 2100. If they do not go for it right away you may want to try again next month. Client Services has not had the account very long, and they might loosen up that last few hundred dollars mid next month. If they don’t you may want to consider taking the deal. Citibank sells to debt buyers that may not go this low, and who also sue to collect.
Thank you Michael. I will be careful with the negotiating, the last thing I want is what you mention in your last sentence.
wait until they offer a 10% … they did it with me.
Not all accounts will qualify for 10% settlements.
Hi Michael,
Related to getting sued, I have a $10,000 Citibank credit card that was just turned over to Client Services for Collection (20 days ago). I’m assuming the older the debt is the more options one will have on settlement. That being said, is there a general rule of thumb on the timing of when client services converts these to judgments? I’m a TX resident if that makes any difference. Thanks!
It is not always the case that the older the debt, the better and more numerous the options. If it were me, and I had a way to raise about 35% of the Citibank balance, I would look to negotiate the settlement with Client Services now.
Can you arrange to put together that much money in the next month or 3?
I just received an offer in the mail from this company – the Chase debt recently charged off in the amount of $8141 and they offered me a settlement of $3420. I was thinking of countering somewhere in the $2k range and seeing their reaction.
Hi Michael.
I spoke with client services regarding my chase credit card debt of 9000 this week. I offered 2000 to settle and they countered at 6700. That is my best offer I have via a gift from family. I have discover 11000 that’s about 90 days late. Should I focus my efforts on discover card or try to keep working with chase on this one? Great site and thanks for your help.
How long has it been since you made a payment on the Chase account?
It is about 130 days past due at this time. Thank you
Let’s connect on the phone for a consul where I can dig into the details more and see if there is something about your situation that suggests Discover get priority over settling with Client Services. There are valid reasons to prioritize one creditor over another even when one account is timed for a better settlement earlier than the other.
You can send an email to me using the same address you get these comment notifications from, or submit a consult request.