Can I settle my credit card debt with Navy Federal Credit Union for half?
I have approx $27,000 in unsecured credit card debt with navy federal credit union. I work in real estate and thus have extreme swings. I also have $45,000 in student loans which I have learned are not able to be settled or discharged in bankrutpcy. My question is can I settle my navy federal debt for 50%? I have read the credit union in general and Navy Federal in particular is very difficult to work with. Please advise?
Can i settle debt with navy federal credit union for 50%?
—Michael
Short answer
Yes. A 50 percent target is realistic with Navy Federal depending on the collection stage you are in, and better results are possible. Navy Federal is one of the easier credit unions to work out a settlement with, but credit union settlements carry complications that a national bank does not have.
Key points on this page
- Credit unions are member owned and usually smaller, so they do not approach settlement with the one policy fits all scenarios used by Chase, Bank of America and Citi.
- Many credit unions do not sell debt to debt buyers, and they lean on attorney debt collectors more than collection agencies. That makes a credit union collector more likely to sue.
- Credit unions cross collateralize their loan products. An on time car loan payment can be used to offset a late credit card payment, and a car title may not be released while the card is unresolved.
- Settlement is typically not an option until the card is close to charge off, which for credit cards usually happens at 180 days of missed payments.
- If your budget supports roughly 2 percent of the balance each month, a lower repayment plan, offered direct or through a credit counseling agency, can avoid settlement and its knock on effects entirely.
- If you hold a car loan, mortgage or insurance product with the same credit union, work out the sequence before you start negotiating, because those contracts can block a settlement.
It is true that settling with a credit union is often not the same, nor sometimes as simple, as setting credit card debt with a national bank. I am not sure what you read about Navy Federal Credit Union, but in my experience NFCU is one of the easier credit unions to work out a settlement with.
Settling Credit Cards with a Credit Union
The basics of why credit card debt settlement with a credit union can be different are:
- Credit Unions are member owned.
- Credit Unions are often smaller banks that do not approach settling debt with one policy fits all scenarios in the way that big banks like Chase, Bank of America, and Citi Bank do.
- Many credit unions do not sell off debt to debt buyers.
- Credit Unions often have established relationships with attorney debt collectors and use their services more than debt collection agencies. In other words – collectors for credit union debts are more likely to sue in order to collect.
- Credit Unions cross collateralize the different credit products they offer their members.
There are some more nuanced differences that can impact your ability to settle with a credit union, but the above list is the overall picture.
Debt Settlement with Navy Federal Credit Union
First lets establish whether you have other options than settling your NFCU credit card. I have some questions you, or anyone else dealing with NFCU, can answer with a reply in the comment section below.
How many months’ payments have you missed with Navy Fed?
Settlements on credit cards are typically not an option until you are closer to the card being charged off. Charge off is an accounting principle that credit unions must follow on unpaid loans. With credit cards the charge off most typically occurs when you reach 180 days of missing payments.
Will your budget support your ability to pay NFCU 2% of today’s credit card balance each month moving forward?
Navy Federal, like nearly all credit unions, will participate in lower monthly debt repayment plans. Some of them offer these plans direct to their members, others will only offer these lower payment options through a credit counseling agency. If your account is not yet charge off, and you can afford roughly $540.00 each month (2% of your 27k NFCU balances), you can avoid settlement and the knock on affects all together.
If your budget supports this lower credit card payment, make a free call to a certified credit counselor with established communication with Navy Federal Credit Union and learn more at 888-317-8770.
Do you have other accounts with Navy Federal?
If you have a car loan, mortgage, or insurance products through your credit union, you can face serious obstacles when trying to settle credit card debt for less than the balance owed. I pointed out in item 5 above that credit unions write contracts that cross collateralize their loan products. This essentially means that you’re on time car loan payment can be used to offset your late credit card payment, or perhaps that the car title is not released when it’s paid off because of unresolved credit card debt. There are many ways your other loan contracts with a credit union can impede your settling credit cards with the same bank. How to navigate these concerns, if they apply to you, and still settle the credit card, is likely handled best one on one, rather than trying to apply your strategy openly online.
If settling the credit card debt with NFCU makes more sense than other payment options, or bankruptcy, your target of 50% is a realistic expectation depending on the collection stage you are in. In fact, we have successfully guided our members to NFCU settlements that result in better than 50% savings. In order to provide more feedback and tips, I have some additional questions:
What state do you live in?
When did you last make a credit card payment to Navy Federal?
If you are being contacted by someone other than Navy Federal for collection, who is collecting?
Can you come up with the money to settle with NFCU today, or do you need time? If you need time, how much?
Anyone with questions about handling credit card debts with Navy Federal, or other credit unions, is welcome to post in the comments below for feedback.
If you would like to cover your situation and options on the phone you can reach me at 800-939-8357, choose option 2, or submit my consult request from and we can schedule a good time to connect on the phone by email.
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 about $50,000 in credit card debt with NFCU, on two separate credit cards (50 days late), 2 unsecured loans totaling about $4,000 (one 45 days and one 116 days late), and a car loan that I owe about $9,000 on. I am still able to pay my car loan, and the 2 unsecured. I need some advice on what I should or rather can do to settle this debt. I don’t have the money to settle anywhere near close to 50% or making my $500/month pay for each credit card. I lost my job a few months back, am now employed again but at about 50% of the pay and recently divorced. I filed bankruptcy 5 years ago so that is not an option for me either.
I want to be able to settle my debt and purchase a house within the next 3 years. Please provide me with ANY suggestions to get my credit back on track.
I have more questions about your goals and ability to raise the money you will need in order to settle with Navy Federal. I suggest you call me for a consult at 800-939-8357, option 2 rings to me. I am in through Wednesday but then out for the holiday weekend.
Is your car loan with Navy Federal?
My car loan is also through Navy Federal.
Call me Monday Wen. I can go over some of the implications of settling with Navy Federal when you have other accounts with them.
You can email me to set up a time that works for us to connect. My email address is the one you get these comment notices from.
Hi Michael –
I currently have about 25k in credit card debt with NFCU. I contacted them tonight and informed them that I am running low on cash, due to relocation expenses/tuition loan repayment refunding/new job. They didn’t seem very empathetic, even though I explained to them that I would like to meet my financial obligation (pay at least what’s owe, over time) but they had indicated only two options:
1- completely disclose my financial situation, submit an application for review by committee, and then if approved, have my APR lowered for 12 months (not completely eliminated) and I continue to make my payments
or
2- payment deferment but still under those conditions
I had inquired if it would be possible for me to just make my 1% minimum payment and not have any interest accrue; the woman said that is not possible since I am still required to pay the balance. I sort of corrected her in saying that I was trying to pay them back in full BUT it’s difficult when your interest accrues in perpetuity.
I suppose it might be that I have been a “good” borrower by still making my payments and haven’t been late once.
I am now seeking advice on what to do next. I definitely cannot continue making payments like this. I am completely short on cash. What are the “logical” steps that you would recommend for me to take? I have spoke with my family over the matter and they are considering helping me settle the debt. Obviously, nowhere near the amount that I am owed. I guess I am just asking in short: what are the actions (or lack of) that I must take to reach that point? Also, what are the possible legal (being sued, etc) or aggressive action (collection calls) that you see imminent? And last, what are the trending timelines to these events.
Please let me know and I look forward to hearing back from you.
Kind regards,
Jonathan
Are there other credit card bills, or unsecured debts other than with Navy Federal?
Do you have any other accounts with Navy Fed?
I would encourage you to call me for a consult at 800-939-8357, option 2 rings to me. Depending on the answers, and other details I will dig into, I may suggest a creative approach.
I have been offered 30% by NFCU to settle – around 9500 for a 31500 loan. I am accepting it. The only thing I want to know is should I request a change to the wording? Should I request my credit report say “Paid” or “Paid in full”? If it says something else, how is my credit report affected? Does it matter?
Thanks. I have found this site a great resource in helping me resolve this.
You can attach a copy of the letter to an email sent to the same address you get these comment notifications from Edward. That is my direct email address. I can review the letter from Navy Federal and offer my best feedback that way.
In general, when you are settling a debt that has been unpaid long enough, how the account is noted is not going to make the difference. It is the fact that the collection is resolved and a zero balance now owed that you are after.
Holding out for Navy Federal to show on your credit reports as paid in full is not productive or even necessary.
Michael, I have a NFCU visa with a balance of 21K, and a few signature loans with them as well in the amount of 6K, the signature loans are current but I have missed one payment on the cc, I just can’t make the min payment. What would be the best action to take to get the payments lowered?
What are the interest rates you are paying on each account Tina?
Hey Michael,
Reading most of you’re responses give me hope to a (HOPEFULLY) good outcome with Navy Federal.
I am completely in the hole with NFCU. Sadly they have time and time again tried their best to help me. However I lost my job back in 2013 & had been in and out of odd jobs since until 2015. I was pregnancy in 2014 and could not work due to pregnancy complications. All of this happened while I had 2 personal loans, and an auto loan with NFCU. It hurt me bad. Grant it I was in good standing until I lost my job and could barely pay my own rent. Unfortunately, I now have a repo & everything has been reported on my credit.
I guess what I’m trying to get to is I’m not at a fantastic job and making really good money. I just need to find the trust in NFCU. I want them back as a bank and I also would like to know how I would go about getting all my debt cleared up with them and how (if possible) would I get another chance for a car loan. I am a single mom and have 2 kids. I have been EVERYWHERE except auto masters for a vehicle. I have trust in them because my parents are military and have been with NFCU for so long. I just want them back!
Please help!!!
What are the balance owed on the unpaid loans and cards with NFCU?
How mush is owed on the deficiency balance after the repossession and auction of the car?
Hi Michael,
I currently have the following in credit card debt to NFCU:
1. $10,500 (Visa credit card, 6 months past due)
2. $16,000 (auto loan, 5 months past due)
3. $12,000 (was originally an auto loan but they converted it into a person loan due to title issues). This one doesn’t even show up in my online account anymore (perhaps it was sold off??)but a negative $3000 showed up in my savings account, so I’m not sure if the two are related).
4. $2100 (line of credit for checking, 4 1/2 months past due)
So I have about $40,600 in debt which I want to settle with NFCU for around 30 to 40% of the amount owed. In the meantime I only have about $5500 saved for that purpose. They’re calling my old job, relatives, etc. The car for the auto loan which is past due has an engine that needs to be replaced, so we’re debating whether it’s even worth trying to settle that particular debt. Plus, the car is collateral so I really don’t want to get it fixed just to have it repossessed. I’m also wary of making any type of payment to bring the accounts current since I would prefer to settle.
I had some medical issues over the past year which resulted in my not being able to keep up with the payments. I need to establish a dialogue with them soon and was wondering if you had any advice on how I might move forward. Thanks.
Give me a call so I can get into the details with you Paul. Situations like yours usually will benefit from a full phone consultation where I can learn more about your situation and goals, and you can hear more than just generalized feedback about navigating settling with NFCU one account at a time.
You can reach me at 800-939-8357, choose option 2.
I have approx $25,000 in unsecured credit card debt with NFCU. Also a personal loan for $1,000. I have been on time with payments for years, but I simply cannot keep up. I’m about to file for Chapter 7 Bankruptcy, but before I do, should I wait at least 180 days? Or, do you think that won’t make a difference?
I’m starting to realize that even with Bankruptcy, I will probably still owe them money, which may end up being garnished from my paychecks.
Do you have any thoughts on what that final owed amount may be after bankruptcy? I’m very worried it will end up being the same $500 I pay a month now. If that’s the case, there is no way I can pay it.
Thanks so much for your help!
Chapter 7 would not typically result in your continued payments to Navy Federal, but a chapter 13 would.
There are strategic reasons to wait to file a bankruptcy. Are you working with a bankruptcy attorney already? If you are, you should talk about the timing of when you will file with him/her.
If you are looking at a chapter 13, you may want to consider negotiating a lower payoff amount with Navy Federal instead.
Are your payments with NFCU current? If late, by how many months?
Are there other credit card related debts besides these 2 accounts?
Thanks for your response!
Yes, I have an attorney, but have not paid anything yet. I only went to the free 1/2 hour consultation. She recommended Chapter 7.
The total amount of credit card debt is $38,000. Most of it with NFCU, but I also have some retail credit cards I need to get rid of as well.
I am current on all accounts, but have a payment due next week to NFCU that I won’t be able to pay.
Thanks again!
You should not have to continue to make payments to Navy Federal, or any other credit cards, after the chapter 7 discharge. Your attorney will likely advise you to stop making any payments as of right now.
Thank you Mr. Bovee. You have been a great help to many!
have a personal loan for 17000 and a credit card for 13000 with NFCU both have been charged off but navy sends letters to settle for different amount but the letters doesn’t state that it will reflect the same on my credit report. I want to settle but I only can afford 350 a month on the most
Paying $350.00 a month is not really settling, and NFCU will generally not offer balance reduction if you need lengthy monthly payment plans.
Can you come up with any way to raise a lump sum amount of cash, say 1/3 of the balances? What about a third of just one balance?
Your lucky. I never got that!
Hello,
I have read your website with interest and am wondering if you could give advice on my situation.
I have a credit card at about 27.5 K and a loan at about 3.5 K. I had been making payments up until my SO left me and subsequently half our income. I was left with the mortgage and our child so money has been very tight. I would say I am currently at the 100 day mark for the cc and about 75 day mark for the loan.
I talked to NFCU at day 55 and explained the situation. They wanted about 24K to settle. I said I could not do that and have not answered their calls since.
During the call, I found out that they had contacted my ex, her family and even a girlfriend from over 15 years ago. While I understand they were looking for me, is this excessive? I am not even sure how they got in contact with my old gf as we never had our name on anything together and my NFCU account was opened well after we had gone our separate ways.
Also, I received a letter for my son yesterday indicating that they had taken money from his account to pay my loan. While I would think they wouldn’t do anything necessarily illegal, I have to ask, is that legal? It certainly seems unethical to me but then again, I do owe them money so I can’t really take the high road.
Anyway, any information you can give would be great. I may be able to get a loan from my family for about 25-30%. What are the odds of them accepting that?
Generally speaking, calls to friends and family must be for location purposes. The nature of the call – that they are collecting a debt – should not be brought up. Those fair debt collection laws apply primarily to third party debt collectors, and not an original creditor like NFCU. But NFCU and other lenders follow the FDCPA, and there are instances where an original creditor can be taken to task for violations.
I am assuming that they took money out of your sons account because you are on the account with your son at NFCU? This is unfortunately common with credit unions and the ability to do that can be found in their account agreements with you.
Settling with NFCU is common, but the amounts you are targeting may not be realistic. There may be more to your story that could help get them to make an exception. Call me for a consult at 800-939-8357, choose option 2, or email the same address you get this comment notification from and let me know a number and good time to reach you.
Hi, and thanks for your advice. I have learned a great deal from reading you here. My question is does cross collaterialization expire when the statue of limitations does on debt? At a credit union, I have delinquent credit card debt that is seven years old, deficit debt from a car that was returned and sold at auction at a loss, a paid off car loan and a mortgage that is current and never late.
The credit union will not release the title to the paid off car, due to other debt. I last asked them over a year ago. They have no interest in taking the car, it would seem. The credit card debt and debt from car that was sold at auction will come off my credit report in a few months. My question is, does all of that debt get rolled into my mortgage that will not be paid off for another ten years, or does it expire at some point. In addition, can the credit union keep the title to the paid off car indefinitely, or will I eventually get it. Thanks.
One more thing, as well. Does it make any sense at this point to try to negotiate a debt settlement on all of this debt that is almost seven years old, and will be removed from my credit reports in a few months.
It can make sense to settle debts that are passed the SOL to sue you, and even when the debts are no longer on your credit reports.
What are the amounts owed on the unpaid accounts?
What is the value of the paid off car that the credit union is holding the title for?
The value of the car is $10K. The credit card debt is $5K and I owe $3K for the negative equity for the car that I surrendered and was sold at auction. So, approximately $8K.
I spoke to the credit union on the phone about a year ago, inquiring about the release of the paid off car title. The collections manager asked me questions regarding the car and the value of the car that was paid off, and then he said we normally don’t settle debts for less, due to cross collaterialization. He then said it’s not really worth our efforts to seize a car ten years old to satisfy debt. So, I have basically let sleeping dogs remain sleeping and continue to drive and register the paid off car.
I really does not even bother me that I don’t have the title. I could care less. It is a second car, and I have no plans to sell it. I am wondering, however, if the full $8K will be added to my mortgage at the end of the period, or if the $8K will expire at some point. If that is the case, I can see that it is in my best interest to attempt to settle the debt now, as opposed to to later when it is added to my mortgage that I thought was paid in full. Thanks.
I do not see that happen with mortgages. I can get you connected with an experienced consumer debt attorney in your state if you like? I think that would be the better resource to address how your concern is handled in your state. What is the name of a nearby large city?
I live in Las Vegas, NV. Thanks for your comments, and I would welcome you recommendation for a consumer debt attorney.
I sent you an email with several experienced attorneys listed in no particular order. Please let me know how you progress with this.
Michael,
I have two loans with NFCU. 11,500 cc – currently in the 12th month of a payment plan with them on that – and a used car loan that is current.
Due to unexpected circumstances over the last 1 1/2 yrs, I have the cc debt to them and another 10k in unsecured cc debt about to be charged off from several other creditors. In looking ahead at my budget, I cannot continue to make the payment on the NFCU card either – which is likely to come out o the payment plan next month anyway, essentially doubling the payment. Currently trying to rearrange my budget priorities to make sure we can pay bills and eat long-term.
If I let that go, will it affect my car loan with them? I’m in Florida. Also thinking they could put a lien against my house for the cc debt if I ever sold it.
Thanks for any advice
-Craig
Credit Unions often have cross collateral clauses in their credit contracts. This means your car loan can be impacted. I would suggest scheduling a time to consult with me to talk about some strategy off line. You can fill in the consult request form, or reply to the same email address you get these comment notifications from and let me know some times and a number I can reach you.
Ok, sounds good. Thank you for the prompt response. I will fill out the consult form soon.
Hi Michael,
I’m in a bit of a jam. I have 3 accounts with Navy Federal and I am underwater and looking for a way out. I have 2 car loans and 1 credit card with Navy Fed. The first car loan I still owe $21K on. It was unsecured as I never sent them the title and they said they switched it to a personal loan rate and bumped the interest to 16%. I had an accident on that car over a year ago, the insurance company totaled it and paid me $30k and took the car. I have been paying Navy Fed $570 monthly for it ever since and they do not know it’s been totaled. The second car loan is still at $13.7k and I just got in an accident last week, without insurance. The car is pretty much totaled and might be worth $1,500 at the auction. I was upside down on that one anyway as the value was only $8k, but i still owe $13.7k. I could offer Navy Federal what remains of that car today. My credit card is unsecured and maxed out at $18k. Total I owe Navy Federal around $52K for all three. I have been putting all of my money into a startup company and have no money to continue paying them. My question is, what might happen if I give the totaled second car back to them and quit paying on everything? They might be able to get $1,500 at auction for my current totaled car but that’s it. I don’t have any other accounts with them. I am really wondering if there is any criminal legal ramifications? Please tell me your opinion on what might happen if I quit paying and walk away all together, as well as what might be my best option. I know not paying will affect my credit, but I won’t need anything credit related within the next 7 years. I would alos like to avoid filing bankruptcy… My dream would be to give them the totaled car back and walk away. Let them do a charge off on all 3 and that be that. My only fear is anything potentially criminal for walking away.
-Chris
We talked on the phone when you called in earlier Chris. Your comment will help me recall your situation. If you have follow up questions post them in this comment string.
I meant to clarify, the letter was very similar with the letter you suggested and I sent documentation to back it up. I have not received a response from them as of yet. I also have not yet been served, but I know that is only a matter of time.
Can I send you some information via E-Mail? I wrote a letter to the attorney last week and would like to E-Mail it to you.
Sure, use the email address you get these comment notifications from.
Is there any chance that they would negotiate getting rid of the late payments that are currently showing on my credit?
Probably not.
Getting them to drop the lawsuit is a long shot too, but worth the effort if you are confident you can still make the minimum payments. I am willing to help and see if I can take your story to a larger audience in order to bring some attention to the rapid fire phone calls original creditors use, spread awareness of why cease communication requests have a limited applicability, and hopefully see a creditor or 5000 change their internal policies about at least responding to cease communication notices (as is allowed) with an “okay, but just so you know, this is how we roll from here” letter of their own.
Would you agree to an interview?
Hi,
I have read through all of the posts and I have a very different situation with NFCU. I have a credit card debt that I have been paying on since 2005 from a home remodel (My EX’s Previous home). Original balance of $15,000 and now a balance of $11,000. I was a stay at home Mom and now divorced with 4 children. I have 3 children who would need daycare if I chose to enter the work force at this time. I chose to use this time to work on my degree via online classes. I am currently enrolled as a full time student. My only income is child support. I was awarded sole use and possession of marital home (my name is not on the mortgage), but I am also responsible for payment. My child support covers the mortgage and that is all. I had never made a late payment $250 monthly to NFCU. I called them during divorce and requested a modification to which they did lower to $140. I continued making all of those payments on time. At the end of the year, the payment amount jumped back to $250. I called them and requested modification again to which I was told it was a one time deal and they would not do it again, they wanted their $250. I began making the $250 payments again and in the mean time, my mortgage started falling behind because I could not possibly pay both. In January I decided to pay them what I could pay them even though it wasn’t the full amount. I sent them $150 in January after they started harassing me, 5 documented phone calls in one hour to my cell phone DURING an exam, I E-mailed them at that point and told them they were not to contact me by phone anymore due to the law, so they did stop calling. $200 in February, $150 in March and in mid March I received a letter from an attorney in my state (FL) saying that I was being sued. They have never offered me any settlements agreements. The attorney has already filed suit with my county court house. I consulted an attorney who says I am a “Prime Candidate” for Chapter 7. I do not want to file a Chapter 7. I would be able to continue payments of $150 or maybe even $200 a month if they would work with me on it. They have made no effort to negotiate with me in any way. I have no assets. There is no equity in my home, probably negative equity if anything (and my name isn’t on the mortgage, but is on the deed). I have a vehicle with a balance at a credit union of $2,100 and NADA value on that vehicle is $2,000. I do not have anything. I do not understand why they are coming after me with a vengeance? The attorney that I consulted said that they do not know that I don’t have anything or they would not be coming after me. To make matters more difficult, I am trying to purchase a much less expensive home ($50,000 price range). I owe $155,000 on my current home. If I could get in to a much smaller mortgage, I could afford to make my payments to NFCU with no issues. But, now they are reporting on my credit 60 days late for the last two months which has dropped my score and put me right out of the home contract that I was trying to purchase. I am not sure what to do at this point. I want to pay the debt. I do not want to file bankruptcy. But, they are making it impossible for me to obtain a lesser home mortgage by posting 60 day late payments on my credit. I made payments, they were not late, they just weren’t the full amount. I don’t even know what to do from here. Going to work is not an option at this point, daycare costs for three would be more than I would make in a month. I am extremely frugal and resourceful. It seems like all of the normal steps in the process were skipped over on me, I do not understand why. I truly don’t own anything to give them. My auto loan is $120 and I have kept it current. I have another credit card with a $60 payment and I have kept it current. I thought I was showing good faith by sending them what I could, but it is still showing late payments on my credit. How can I fix this? I need to be able to obtain this lesser mortgage before I lose the home I am in.
The likeliest reason NFCU skipped to immediately suing you is because:
1. You were not paying the required minimum payment.
2. You told them not to contact you anymore (even if only by phone). They interpreted that as a cease communication request, which leaves suing you in court as the only option to collect.
I see number 2 play out with creditors for a couple decades now. Cease communication letters should generally be reserved for when the statute of limitations for a creditor to sue you have passed.
Bankruptcy may impair your ability to get student loans, so I do not like that idea. But for starters, what is the total of all your unsecured debts? And do you anticipate applying for student loans in the next couple years?
You have options, but none of them are great.
I really do wish NFCU and other creditors would explain to people those temporary hardship plans are only good for a limited time AND that they are often precluded from extending them to you again. Consolidating credit card bills into one lower payment for the life of the balance with a credit counselor is often the better path with some banks.
What chance is there for you to bring your account completely current?
Thank you for your response.
I can bring the account current (It shows $836.00 behind) by pulling from a few small accounts, it will take everything I have, but I can do it now. I just wasn’t sure that would help me at this point. I actually tried to do this on-line a few days ago and they have my account locked, so I will have to go in to a branch and didn’t know if they would take payment from me being that an attorney has it. Although they have continued cashing all of my checks every month. If I do pay it to current now, will it stop the legal process?
I have unsecured debt:
NFCU $11,000
CC$ 1,800
Student Loans $3,500 (No payments due at this time)
I won’t be applying for any more student loans as I qualify for FASFA and it does not have to be repaid. But, I really need to qualify for a mortgage to get out of this high payments here or my situation is just going to continue to be financially difficult.
I would not bring the account current without first talking everything over with NFCU and the attorney they have the account with. I would probably first put a concise letter together about what you did and why, and that you can bring the account current and make normal payments, and would they please consider dropping the lawsuit.
I would be all “As a single mother with 3 small children, the day my phone rang five times in an hour (the month I paid only what I could afford), I was in the middle of an at home college exam. One of my children was exceptionally fussy this day. The NFCU calls that came in rapid fire, along with the stress of the day, and exam, all conspired to frustrate me to do an admittedly too quick online search on how to stop collection calls, which resulted in the hastily sent email requesting NFCU stop calling. It has never been my intention not to pay. This is further evidenced by my willingness (and considerable struggle) to bring the account current….”
You get where I am going with this. The goal is to get the suit dropped.
Is that the direction you want to try to go? Otherwise bankruptcy would get rid of the two credit cards for probably less than 1800 dollars total.
Oh, and bankruptcy typically takes you out of the home loan market for roughly 2 years.
Hi,
We had an NFCU credit card with a 5k limit. Crap happened and we defaulted that was like 5 years ago. We are in a better place now and want to fix our credit. I’d like to call them and settle at 50% and pay it all now but I don’t know what phone number to call to take care of this. We haven’t heard from them in a few years so I have to call them. Does anyone know what number I should call? Also I’m not concerned with maintaining my acct there, I just need a letter stating the debt had been satisfied.
What state are you in?
The main customer service line for NFCU is (888) 842-6328, and will do to get started.
If you have your old account number handy, give the rep that, or your social security number. Explain very briefly that you are calling to resolve a really old debt that went to collections. You will get connected to another department, and should be prepared to repeat yourself. You may get transferred again, as the first department may not handle accounts that are past a certain age of nonpayment.
Hello,
I have a nfcu credit card I opened in 2012 and limits kept increasing til it hit 11k and currently maxed out. I’m two weeks behind on the payment but my concern is I have a car loan I opened in September 2013 and am up to date in it for 10.5k. I’ve read over the promissory note on the car loan and it says nothing about cross colateralization…I took a 30% hit on income coming into 2015 so defaulting the credit card is a real possibility, I attempted refinancing the car elsewhere but no luck do to my credit hit on maxing out the card. What are my best options? I don’t want to pay the car off to find out the bank won’t release it. Any help would be appreciated. Thanks.
What is your interest rate on the credit card right now? How much is your monthly budget short of being able to make timely payments on your NFCU credit card? What are the balances on other unsecured debts that you carrying?
Interest rate is 17.9 (ceiling for nfcu). Tried to lower it 6 months ago and denied. I can make the payments when I get caught up on everything within 30 days but until then necessities come first and cc bill is the first to go. By the time I get caught up on priorities the cc bill will be too much to catch up and be in default more than likely. That is my only unsecured debt aside from a $150 Kohls card. My worry is if I can’t catch up on the nfcu card will it affect my car loan with nfcu even though it says nothing on the promissory note. Also what options or action should I take with the cc if I can’t catch up?
If you can afford 200 dollars a month, I would suggest calling my hotline at 800-939-8357 and choosing option 1 to talk with a counselor about enrolling in a debt management plan. If you cannot afford the 200 now, but think you will be able to in a month or two, you could still get into the fixed lower monthly repayment plan then.
Does that sound possible?
I have an old credit card from NFCU that I didn’t pay. Lost my job, that whole story. I’m now in a position to make good on my debt as I’ve had a full-time job for over 6 months, but it is on my report with ASSET ACCEPTANCE LLC as well. The status of the account says Past Due 180 days, not charged off or sold. Would I have any luck dealing directly with NFCU to get the collection removed? I can pay the entire balance due of $4300.
Asset Acceptance is a debt buyer. You may want to call NFCU and verify that what they are showing on your credit reports is accurate. Post what you learn and lets go from there.
I should point out the significance of NFCU having sold your debt to Asset Acceptance.
Navy Federal should show a zero balance owed to them once they sell the debt. So the accurate credit reporting is important so that you are not having to negatives on yoru credit report showing a balance owed for the same debt.
Once that issue is corrected, you can then tackle the debt with the debt buyer, and get it to show zero balance owed. Your credit reports can recover better from there. There is next to no chance you can get the collection removed through NFCU.
I verified with NFCU that it was in fact sold to Asset Acceptance. I initiated disputes for all my collections accounts in February and did not hear back from Asset Acceptance at all regarding their past due balance of $5000, the original debt was $4300. I'm in Nevada & I'm not sure whether or not they can sue me since I didn't get any letters from them after my dispute. This dates back to May 2012. I think the original date was January 2011
Were your disputes credit report related, or did you send Asset Acceptance a specific dispute?
Nevada has a 4 year SOL to legitimately sue on revolving consumer debts like your NFCU credit card, so it appears you are out of the woods as far as a legitimate collection suit goes.
Do you have any specific credit or finance goals in the next 3 years?
I would like to buy a house and in order to do so, all collections have to be paid. I tried calling them today and they transferred me to a line that doesn’t answer. So, I’m thinking I’ll just sent them a letter offering a settlement since I can’t get anyone on the phone.
I would not send them anything in writing acknowledging the debt. Nevada is a state that allows reaging of the debt to occur when in writing. That could (I am not saying would) reset the SOL for you to be legitimately sued in Nevada. You should run this concern by an experienced consumer law attorney (one with debt collection defense as part of their practice).
If you need help settling you can get some, just let me know.
I would appreciate help settling. Thank you Michael.
Okay, I am going to forward your email to one of the experts I work with and you two can connect for a consult on the phone and take things from there. You can expect an email from me introducing the two of you to each other.
….if/when they call again, I will politely tell them the same thing. But how should I respond to any written notice (if at all….unless it is from an instate lawyer)?
I am not sure I would respond to the average collection letter at this point. Not given the set of circumstances you are in (other readers should know that responding to collection letters using certain tactics is really appropriate sometimes).