Will Zwicker and Associates keep the payment agreement I made with them?
Defaulted on American Express credit card. It went to Zwicker and Associates. Zwicker sued me and judgment was entered for them. The afternoon before court the next day I negotiated a payment agreement with them on the phone, and it was accepted, but the judgment was entered anyway.
Will Zwicker, I have heard lots of bad stuff about them, adhere to the negotiated agreement or keep on with even more legal actions? Any experience with them?
—JC
My experiences with settling consumer debts with Zwicker and Associates is mixed. I have found them to be one of the easier debt collection law firms to deal with, and I think all of the other CRN coaches generally agreed on that over the years. I do not have too many examples of settlements and agreements with them falling off the rails.
My own, or other counselors experiences negotiating and making payment arrangements with Zwicker and Associates can be a bit different than when our customers work directly with the firm. Which is what we should be talking about.
When it comes to people working out deals directly with debt collection law firms, you could do much worse. I can point to only a small number of DIY debt relief program customers that shared problems or concerns about their dealings. I see more frustrations expressed by folks who are struggling to come up with a workable plan.
Negotiating Settlements and Payments
Zwicker does a healthy amount of collection work on American Express credit cards that go delinquent. I have generally targeted settlements with Zwicker at between 50 and 60 percent of the balance. I have seen a handful of deals get negotiated lower than that, just not enough to make the lower amounts a realistic target.
Negotiating with Zwicker once you have been sued for collection is another thing all together. And what can be realistically done will greatly depend on who it is that the firm is collecting for.
Your options when Zwicker sues on behalf of an original creditor like AMEX can often mean lump sum settlements in excess of 60 percent, and when there are no lump sum offers to be had (it can happen), or when you do not have the cash resources to pay a settlement, you can end up with payment plans.
You did not say what your payment plan was, but collection law firms will look to set up the shortest payment time frame whenever possible. I often see 6 to 12 month terms for payment plans on settlements, but payment plans when a case has been filed in court can go longer.
Be sure any payment agreement you set up is something you can afford. And also be sure to get any settlement or payment you both agree to is in writing. If they do not stick to what you agreed to with them, you want something in writing to hold them to. If you struggle to get a written agreement out of them now that it is after the fact, call a go over the details of the deal you made, and record the conversation. You can tell them you are recording and why.
Next steps when Sued by Zwicker
You have options to consider for resolving debts, even after you have been sued. Negotiating a settlement is sometimes a good idea to jump on immediately, and in other instances you can get a better outcome by defending against the lawsuit. Here again, it will often matter who Zwicker is collecting for.
Once sued, I recommend consulting with an experienced debt collection defense attorney. Most offer an initial consult at no cost, and you will be able to make better, and more informed decisions afterward. You can reach a debt collection defense professional at 800-939-8357, press option 5.
If, after you are sued, all you can do is set up payments, consider that defending the case correctly can buy you time to raise the money to be able to fund a settlement 6, or maybe 12 months down the road. This could help you avoid a judgment showing up on your credit reports.
If you do agree to payments, be prepared for the Zwicker attorney to want you to stipulate or consent to the judgment. It is okay if you are unable to avoid this outcome. It just is what is sometimes.
When you agreed to the payments on your AMEX account with Zwicker and Assoc., it sounds like it was not explained to you that the judgment was going to be entered anyway. Zwicker is not going to pause in any court action for a simple payment plan (lump sum settlement is a different story). They are working to secure payment for their client, and already took the trouble to file in the court. They will secure the judgment.
Settling Debt with Zwicker Post Judgment
You can circle back and settle judgment debt with Zwicker. I know that is not what you have going, but I wanted to point this out for later readers of this page.
If the judgment is not set up on payments, and has been unpaid for some time (usually the longer the better), you can call Zwicker and see about settling for a lump sum payment. Your realistic expectations about how much you can save will not be much different than what I shared above.
The more collectable you look on paper to a collection attorney, the harder it can be to negotiate a lower pay off. Judgments mean that Zwicker can attempt to garnish wages, levy your bank account, or file property liens. All that extra collection effort can be impacted by your state law. But my experience is that settling for less is possible when there is not a garnishment in place (though in rare instance, that can happen too).
I have had a couple of files with Zwicker over the years that I considered a challenge. One of them is still vividly clear to me years later because of how silly it was. I negotiated a settlement on an existing judgment for a customer, and we wanted that fact updated with the court. Getting the satisfaction of judgment filed with the court was like moving a mountain, and it should not have been.
Keep track of all payments you are making. If the judgment included interest (the court can set that as high as your state law allows), factor that in to how long you will be paying.
Anyone dealing with collections being handled by Zwicker and Associates is welcome to post in the comments 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.
Zwicker sued me and I request for motion to compel arbitration and they request to deny my motion. Judge set a hearing and Judge gave is a pass, so that I can get representation, but they did not show up. Why is it if we don’t show up for court, they can get a default judgment, but if they don’t show up we can’t request a dismisall?
Great question! One I have wondered many times over the years.
I have been in a debt relief program with Beyond Finance for a little over a year. My one debt remaining is with Discover. They hired Zwicker to sue me. They have now offered a settlement for about $12,500, down from just over $15,000. They want it paid within 24 months. I can’t afford the payments, and want to ask for a 36 month payment term. Beyond is pressuring me to take the first settlement saying Zwicker will likely increase the amount I have to pay if I counter. How true is that?
Is there an active lawsuit? If so, what is the status of the case?
They have apparently filed a suit, but I have yet to receive any sort of summons.
You can schedule a call with me to talk through what you can expect here: https://calendly.com/debtbytes/15min
I have received two letters from Zwicker (Amex) with a settlement amount…I overlooked the deadline, but also needed to get my ducks in a row before accepting. Today I called and learned of the deadline, totally my fault, I overlooked it in the letter and now they’re saying that they couldn’t offer that settlement…even when I offered to pay $1k today. My question is whether I should wait for another letter or move forward? There is a judgement in place and I paid towards it, set up a payment plan and was told they would send me the details on where to make the payments. I never received any of that, but 6 months later, I received the first of the two settlement letters.
I need to know more specifics about your situation before I can offer feedback. You can schedule a call with me here: https://calendly.com/debtbytes/15min
Hi, I had set a payment plan with this firm I had 400.00 left to pay and I had covid which left me with out any money. I emailed them and explained on the day i was to send the payment.
Hello, this is pertaining to a “student loan”.
I was sued back in 2011, then I went into bankruptcy, never heard from them, now 10+yrs later Zwicker came back to continue the lawsuit with MEFA. I was willing to drop the case, I owe over $64K, they wanted a down payment of 30%, can’t afford it. The payment plan they are proposing I cannot afford, so they stated they will continue collections. What do I do now? I have not signed the Agreement to Judgement (whatever that means). I saw online that they were sued in 2016 for unfair student practices. I’ve tried to consolidate this loan with my other student loans, but I was told it is not a student loan.
Was this loan listed in your chapter 7 bankruptcy?
I just noticed that my discover credit card debt have been sent to zwicker.
How to even start to make a settlement? They offered 70% of it and I turned it down, obviously, I am aiming for 30% of it or little higher than that.
That is an unrealistic goal in this situation.
When were you served? Have you responded to the suit through the court yet?
Zwicker sued me for 1800 AMEX , They canceled my card after 36 years. Because they enacted their safety on my online home. Depot purchases and home depot is not a safe key merchant, So nobody could figure out what it was. I ended up Avenue to go down there. Use my credit card in person it worked , When I called them to find out what the problem was. The customer service in a foreign land kept telling me there’s a block for online purchases and putting me on hold. So I gotta grated and I told him to take that block off right now and I said a bad word and I hang up.. Forgot all about it paid my balance in full and September. Like I always do then comes october when my annual fee comes due, I paid the full balance which includes the annual fee on the 25th., On November 3rd I received cancelation letter. And november fifth they had already turned me over to collections. I had credits That we’re coming in but I contacted them immediately after getting the letter. Told them when the credits came in. I would pay the bill.. Well, they cut off my online access. And they never sent me and I demised statement just a balance. Contacted zwicker and American Express over 10 times no return calls., No return email. In august of twenty twenty three I get served with a lawsuit for a different amount than the placement notice for american express.. I have never received validation letter as required by law. Even when they sued me. I had to file a motion for discovery to get the proof of the debt which still, they denied me the validation letters and said they were irrelevant.. And that they would cause an undue Burden to find them, really? It should have been your first contact with me. , Inconsidering there was no more contact. It shouldn’t be hard to find.. Even though they are in violation of the FCC PA and the F DCP A., They went ahead and against the rules of the court., You know, laterally canceled the pretrial conference. The third one, the second one. They just didn’t show up., And instead, they scheduled summary disposition.. I showed app for the third scheduled pretrial hearing. Because they didn’t cancel it until Friday. January fifth, in the court date for the pretrial was January 9th.the next Tuesday. Obviously I didn’t get that letter in time. At that pretrial conference they canceled. I intended to tell the judge. I hadn’t gotten all of my discovery and about the violations, but that was canceled. And we moved straight to summary disposition. And they got a judgment against me today. Even though they’re war material facts That were unaddressed. and discovery outstanding. They never once tried to Settle with me. Nothing they have been the nightmare from hell. I would have paid them today, but they ruined my credit for 7 years without informing me and will not tell me when that started. They say that these credit companies are not associated with swicker and went on to name the 3 and explain them. I’m already well aware of that. They turned me in And ruined my credit. before they ever even validated the debt. And now they got a judgment. I am so disgusted. You know, if I hadn’t shown up for a pretrial conference. They would have got a default judgment. But when they don’t show app and they cancel it unilaterally against the written rules of the court. It’s fine no problem when they don’t Follow the law regarding the validation. That’s fine, no problem. I don’t understand this Justice system. And the way that the courts always let the big guy. Steam roll the pro se lit again.
good day,
i have a current debt from amex that zwicker and associates are now attempting to collect. It is for an LLC involving drop shipping through amazon. I now owe 67k after about 8k in late fees from amex. the original debt was for 59k. i had a situation where amazon deactivated my account and froze my money. Meanwhile amex sent it to Z&A and I dont have that amount to pay. i want to try to negotiate for a lower amount but I am not experienced at it. The letter i received is not a summons but i fear it will go to court. i have yet to respond in fear of saying the wrong things. What should i do?
I replied to your form submission through the site just now with a link to schedule a call with me. You can click on the get help tab at the top of the site to schedule time with me too.
I can help you get your bearings on your total situation, and workable strategies for Zwicker, on that call.
I am enrolled in national debt relief program for my credit cards due to the Covid pandemic and Zwicker filed a suit against me in the state of Missouri which I no longer live in for my American Express I was never served and national debt relief reached a settlement with them which they want me to sign a consent judgment and I don’t wanna do it is there any way around it especially since I was never served?
You may want to talk to an experienced debt collection consumer law attorney in your state about your options for defending the suit as being in the wrong jurisdiction, and then negotiating the settlement after that issue is resolved.
I got a letter in the mail from a local lawyer saying I’m being sued. I looked it up sure enough I was. I went ahead and started looking into it I’m about 15 hours deep into Reddit and the advice on there. Can you verify this info for me or your input on it?
1. Never give them access to your bank account? Like paying through routing #. I was given this option and was able to pay by the end of the month. Which gives me 16 days. For 6 .6 k which is 65% of the payment. I negotiated that alone with the lady on the phone. I was able to get them to agree to a money order with it in writing about the payment but the time was cut down to 10 days. Had to be across the country in 10 days.
2. Is 65% of the amount for a lump sum payment good or should i hire a lawyer for 2000 them fight the charges? If I put the lump sum she said she will put a hold on the lawsuit.
Should I get a lawyer or pay it? Paying it puts me right at making ends meet but if not I’m worried I’ll be out way more in the end paying 2k for a lawyer and then more for the settlement.
What is the amount they are suing for?
As far as paying with your checking information over the phone, as long as the debt is legitimate, and you have the deal in writing first, I am good with paying via ACH over the phone. If it is not in writing first though, that is a solid no.
The full amount was 10250 but lowered it to 6648. They made that agreement with me over the phone said they would fax me on the 18th and pull the 1st payment out of 2216 on the 19th should I tell them to hold off incase they don’t send that fax over in time? I’m not sure why but they said the fax takes 3 days to get and they don’t do emails. I had to do 3 payments due to my bank having a limit on a daily amount I can take out each day.
I would probably go with this deal if it were me.
An attorney has a cost. You already have the reduction you reached and agreed to. You may have left money on the table, but going back to explore a lower outcome now is not likely to be all that productive (given they are sending you the deal in writing). If you balk on this, and an attorney potentially saves you another 1500, but charges you that amount as a fee, the math is the same, and there is no guarantee the deal will cover their fees.
If you do not have the fax in time for the payment date, and were it me, I would cancel the deal and get them to re-letter it with enough time to receive the fax or mail.
We were using Timberline for Consolidation for two years. We had a chance to fund 19k (55% of AMEX Balance collectively, two cards: $16k and 19k) to make an offer for lump sum, and Zwicker filed suit in court two weeks prior, and we hadnt known. (Just moved out of state).
We dropped Timberline from these accounts (Amerilit scared us with thier scammy conversation even though we were paying for them through Timberline).,, now we are hoping to reach a lump sum agreement with Zwicker i guess,,any advice on how to approach this?
Did Zwicker file the AMEX lawsuit in a state you no longer live in?
Have you filed anything with that court yet?
I received a letter from Zwicker & Assoc for a Discover Babk balance of $1155. They are proposing a $903 reduced payoff. I am currently undergoing Social Security Disability and am living off of my dwindling savings. Can I negotiate a lower rate with their non-attorney reps? If so, would $600 lump sum be a reasonable offer that they may except?
I tend to see Zwicker be more aggressive on Discover collections. I would be prepared for 60 percent or higher settlements. Not that getting Zwicker to go lower is impossible, but it is less common in this particular situation.
Thanks I am going to try that!
I was served with a summons from zwicker for a debt to their client ,Goldman Sachs. The amount is about $11k. If I am willing to do a payment plan is it wise to contact Zwicker directly and tell them that… or should I just file my appearance form by the return date to buy time? Or do I have to make sure I do the appearance form no matter what?
You can call and talk about the payment plan, or respond to the lawsuit first, and then call Zwicker.
If you could settle for less than what is owed, and even set up a payment plan for that, would you be interested in that?
If so, you can schedule a call with me to talk strategy here: https://calendly.com/debtbytes/15min
It’ll be interesting to see where my case goes. I entered a debt settlement program with Huron Law Group a year and a half ago. Most everything paid off except for Discover, we were waiting for my account to grow a little before they began in with Z&A. Got served by Z&A on behalf of Discover for almost $6,000 A WEEK after I called Huron asking about Discover. They’re my legal reps, too, and assisted me with my paperwork. My account, after tomorrow, will be at around $2,600. In two more months it’ll be close to $4,000. Here’s to hoping they’ll settle for that 60%.
Thank you for these forums, it ha made this much more helpful to understand. I have an old Amex Debt for about 35K, after 6 months (1/20) they started reporting it as CO and I got letters from Zwicker. Amex reports CO every month, which is something I’ve been able to find almost nothing on. In May I rec’d the notice of rights, then in September I rec’d a letter form Zwicker saying Amex wiling to settle for 75% of total amount, agreed in 12 monthly payments. I can’t afford the over 2K it would cost a month and am considering my next steps. Does it make more sense to write a response to offer less (like 50%) and extend the monthly payments over 18 months or to just not respond and see where it goes? Someone told me that if you respond it speeds up the process for lawsuits, etc. Now that I am able to to address the old debt, do the right thing, and improve my credit – I really want to but don’t know if I should call, write, ignore?
I find it better to be proactive with communication when you have a goal, and are being realistic with what you can accomplish.
If you are confident you will be able to pay if Zwicker approves a lower settlement deal, approves more time to pay, or both, I would start that conversation if it were me.
Sued by Z&A on behalf of US Bank for a balance of $9,934. Tried to settle with creditor for under 40% with no success. Zwicker does not mail any legal documents. I found out i was being sued when i received law firm advertisement letter. I called Z&A and was informed I was already served. Never was served! Received copy of Summons & Complaint via email from Z&A. I filed Answer just to protect myself from default judgement. I also filed a Motion to Quash Service. I have court date tomorrow, 8/26/20, in San Bernardino on my Motion. I tried settling with Z&A last week with no success. My plan is to try and settle with plaintiff attorney before we see the judge. Hoping to get a Covid-19 deal! lol If can’t settle, I am going to ask judge to grant my Motion & dismiss case with prejudice. I should have sought legal representation, but too late now. Wish me luck!
Good luck Juan!
Well, no luck. Plaintiff attorney has no settlement authority. My motion was rejected because I filed an Answer. I was a little nervous representing myself, but Judge was nice. Case is set for trial setting conference on 12/22/20. I called S&A today and offered 4K on a balance of $9,934. It was rejected. I have no choice but to retain legal representation. Michael, any atty recommendations in the Rancho Cucamonga area?
Go ahead and schedule a call with me here: https://calendly.com/debtbytes/15min
I can get a better understanding of your situation and go from there.
Michael, Since the pandemic started I’m seeing almost no new lawsuits on my county website in Texas from Amex. Is there an alternate strategy taking hold?
I have seen a little bit of softening on collection tactics in some areas of the country, but it is still full steam ahead with using the courts in others.
Sued by zwicker on behalf of amex. During litigation negotiations was able to secure a settlement of 30% lump sum payment on a $16k balance this was a counter offer to 12 month payments at 50% they originally offered. I retained a very good attorney to aid me due to the litigation, not sure if that why they agreed to the lower % then they’re known for. Regardless theres hope for targeting those % in 2020 it appears.
Nice work!
Zwicker took me to court over an 18K American Express bill and won. Approximately 5-6 years ago. I did not show up to court. I live in CT. The 18K + judgement was to be paid weekly by sending checks to Zwicker directly. I send 35.00 per week since then and have not missed a payment once. However my credit report shows a continuous late payment and does not show any past payments since the judgement. The balance is down to 8K at this point. The big problem is the credit reporting still showing late payments that are current which will take 7 years to go away once completely paid off. Is this correct – can they still report late payments this way? I will have had late payments on my report for over 20 years even though the judgement was years ago?
The negative AMEX reporting has a 7 year shelf life from when you stopped payments (before Zwicker got involved). It sounds like you are a year or so from this hitting that 7 year mark.
Check your credit to make sure it falls off when it is supposed to. If it does not, let me know and we can go from there.
It is normal for monthly payments on charged off collection accounts to not update you your credit.
I’ve been back and forth with Z&A for the last few years for a Discover Student Loan ($4150) that is about 15 years old. Sometime over a year ago I made a few small payments of $75 because they were harassing my father who co-signed on the loan. When I called them, they demanded at $350 monthly payment which I cannot afford (I only make $1500/mo) or they’d sue both my father and me. My father is retired, battling cancer and on social security (only making $700/mo). I can afford a lump sum of half the debt ($2000), is it possible to negotiate with them?