Your Options with a Repayment Plan or Settling Your Citibank Account
Have a debt of approximately $17k with Citibank Credit Card, 162 days past due. I've talked to them repeatedly about inability to pay, even offered settlements, but they won't budge. An offer they made of a 5 year 0% plan has been taken off the table, and I can't afford $1000 to bring the account current for 1 month's time. They tell me it will soon be in "pre-litigation". My question is: What does pre-litigation mean, and what can I expect next? They say making a payment of $500 will open up other options again, but I'm supposing it will just "reset the clock" so to speak, and I'll just be out the $5oo (which I probably can't afford anyway)!
What does citibank mean by prelitigation and what are my options to settle my credit card with them?
—Scott
The reference to pre-litigation at this stage of default with a citi bank credit card or personal loan can mean nothing of consequence, or that your account has been, or soon will be, flagged for placement with an attorney who may be authorized to sue you in their effort to collect. If your goal is settling your citibank credit card, you may end up doing that with a debt collector Citi sends the account to, even an attorney debt collection firm. If you wanted to get Citi to accept a payment plan instead, even though they pulled the option off the table, you can still get on a payment plan.
Citibank, Charged Off Credit Card Debt, and the Risk of a Collection Lawsuit
Your account is a couple of weeks from charge off. When the account charges off citibank will do one of three things:
- Assign your debt out to a debt collection agency who will call and write to you on behalf of Citibank in order to collect.
- Sell your debt to a debt buyer like Unifund, Porfolio Recovery Associates, LVNV, Midland Finding etc. These debt buyers use debt collection agencies and attorney debt collectors too.
- Citibank may send your account directly to an attorney debt collector they have an established relationship with in your state for collection and authorization to sue.
Here is a quick read about what banks (not just Citi), do at the point of credit card debt charge off: Assign, Sue, or Sell.
Creditors like Citi bank use the reference to pre-litigation as an effective tool to get you to agree to make a payment. The detail you provided supports exactly that. Having said that, there are a number of accounts that are selected for immediate legal collection action. What you further outlined about Citibank withdrawing the hardship plan offer and that they are not willing to discuss debt settlement, gives me the impression that your account may well be set for fast track referral to an attorney debt collector.
There are Reasons Citi Will Fast Track Debt Collection Efforts
- It may have something to do with account activity leading up to your default in payment (recent cash advances, balance transfers, increased or large transactions just prior to default).
- If you send some canned letter you pulled off a website, Citibank may have flagged your account for legal review.
- What can be seen real time on your credit report, and whether you are paying other credit cards, but not paying Citi.
- Even the affluence of your zip code.
There are some key things I like to see people put in play prior to reaching the stage of pre charge off collection that you are in. Some prepping can help you better know why Citibank might pull an earlier offer, and even when to take the most recent approved deal to settle.
First, you mention that even the minimum 500.00 Citi bank is asking for is not within your budget, but were you to come up with it, would they offer the 5 year balance liquidation plan again? If they do, can you come up with the roughly 283.33 every month like clock work for the next 60 months? If you are skeptical that you can meet the lower payment, I don’t recommend enrolling in the plan. Do you have other credit card debts you are struggling with? If so, will agreeing to a long term balance liquidation plan with Citibank (hardship repayment), help you manage your other credit card debts?
If Citi has yanked the offer to set you up on the 60 month repayment plan, they likely would accept a similar plan if it was submitted to them through a nonprofit consumer credit counseling agency. And if you are looking to get lower monthly payments out of more than just Citi, talking to a credit counselor will make sense. Talking to a credit counselor one on one to get a lower monthly payment estimate is free.
Credit counseling companies have decades of history of getting people set up on affordable credit card repayment plans with Citibank. The counseling agency can often get you a lower interest rate and cut monthly credit card payments across all of your credit cards, rather than you struggling to get all or your credit card banks to agree to a plan, or only being able to get temporary hardship payment reductions. You can speak with a certified counselor today at 800-939-8357 ext 1, and also learn more about consolidating monthly payments.
You reference speaking to Citibank about settling your credit card debt. How were you going to fund a realistic settlement offer were Citi to make one available?
What are the options for settling your credit card with Citibank?
If you do not make a payment, or some arrangement with Citibank, the account will charge off and be put into their collection pipeline. If the threat of pre-litigation in this instance is a collection ploy, you will know as soon as you are contacted by the company your debt is placed with. As soon as you know who that is there are some predictable things that will happen next.
If you want to settle the Citi debt, you have to identify a source of funds to do so. The account is not going to go away after charge off. You will have options to make a payment plan or settle the account wherever it lands. My concern is that you do not appear to have the money to do so.
Have you looked into your options with bankruptcy? If not, you should. Without the resources needed, even if accumulated over time, and a realistic plan to settle collection accounts, the situation can eventually lead to court and being sued for your unpaid Citi credit card. It is often better that you are in court on your terms (with your bankruptcy attorney) than on Citi’s terms with a collection lawsuit.
I should mention that threats of and/or actually being sued to collect unpaid credit card debts is not exclusive to Citibank. Other large credit card issuers like Bank of America, Chase, Wells Fargo, Capital One, American Express, Discover, do sue to collect. Sometimes collection efforts on these credit card accounts wont occur until some time down the road, or after your credit card account is sold off to a debt buyer.
Post your answers to the above questions in a comment reply below and I can offer more detailed 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. lost my work and have different card total 35000$ all past due for last 2 months most of them creditor closed and giving me payment option wit 0 apr for 60 months so my question is which option is best for me can I apply for dept relief or paying minimum payment for 60 Monts payment that credit card companies offered me so which one is less effect on my credit score coz I’m planning to buy home in future .
Thanks
I tend to suggest the benefits of settling the debt for less than what is owed when you are already behind a few payments and your credit already torched. If you have not stabilized your income yet, the ability to confidently commit to the Citibank hardship repayment plan may not even exist.
How soon after you replace your income do you think you would be looking for a home loan?
Michael, thank you for this article and your continued support for people asking questions on it. I have $38k in Citi credit card debt and just learned today they’re suing me for it. I’ve been out of work and unable to make payments but if I could get a settlement for 40-50% over time, I can figure that out. When I spoke with Citi directly, there was no option for a settlement. Just a payment plan that feels like it’ll be with me longer than a student loan. What would you recommend?
Who is the collection law firm suing on behalf of Citibank?
Double check the named plaintiff on the lawsuit papers you were served and make sure it is not another name than Citibank.
When were you served the summons?
What state are you in?
Michael, I appreciate your excellent advice. There is one question that I have not seen in your comments.
Citi has offered me a 50% settlement on $6300.00 owed or a payment plan of $133.00 over 60 months totaling $7980.00.
I have several other cards with no balance.
Would either of these options allow me to repair my credit score sooner?
I do feel morally obligated to pay my debts, but that may not be the best business decision.
Illness has kept me from working the past six months, but I may be back to work soon.
Thanks Frank
Because you are already several months late with payments settling would provide the more immediate benefit to your credit reports.
Making 60 months of payments on what is now a collection account would prolong the agony, where settling would bring the debt to zero in a matter of a few months. Your credit will thank you.
Thank you for your quick and professional reply.
My wishful thinking would be that in paying off the debt in full, Citi would find the consumer as a safer investment when reestablishing credit. However, with the lack of advice when calling Citi support, it is clear that the one hand does not see what the other is doing. So prolonging the payoff schedule would be fruitless.
I will be following your advice.
Hello there,
This is my first time here. I current owe Citi $4,500. It was originally on a payment plan but the last payment from September did not go through as I forgot to deposit money to my checking so they charged it off. I called Citi and I asked what else I can do because I cannot pay the full amount. I asked if there’s a payment plan also and the lady said yea. She set me up for 31 months for $146 every month. My questions is, is that a good idea to be on a payment plan again? Also, since they were able to set me up for a payment plan, does that mean that they haven’t sold my debt yet and will stay with Citi as long as I make payments?
Thank you and I hope to hear from you.
If you are able to call Citibank directly to work out payment or settlement arrangements than it typically means they have not sold or placed your account for collection.
Whether or not the payment plan with Citibank is a good idea can vary.
Are you able to afford the 146 a month payment to Citibank?
Are there other accounts that have fallen behind besides this one? If so, who are those accounts with and how long have they gone unpaid?
I currently owe $4100 on my Citi Bank Visa Best Buy Card. Never missed a payment, always paid on time, usually pay at least a little more than the minimum monthly payment. The interest rate keeps increasing as does my monthly payment each month (haven’t even used the card in months). I have closed the account so the card can no longer be used. I need to know how to negotiate for a lower interest rate or if it is possible to settle for a percentage of what I owe. I have terminal cancer and don’t want to have to deal with a lawsuit or have this affect my husband in the future. It’s to the point that I simply can’t float $149 a month (a $10 increase from last month) – and I’m sure it will be even higher next month.
Check out this post about calling Citi to see if they will give you a hardship payment plan.
If you want to settle that will be a decent option when the account is 5 or more months late.
Are there other debts than this?
I have another credit card that can easily be paid off as the amount is lower and the monthly interest isn’t as much. The big thing is avoiding court – I’d rather pay the debt if possible so I don’t have to deal with a wage garnishment or bank garnishment. And I’m pretty sure not getting behind helps.
Thanks. I would try the hardship payment plan first to see if they can offer you something you can afford.
My husband had a card with Citi that was charged off in 2014 for $25,857. It was turned over or sold to collection, ARC, where he paid $125 per mo. for many years. There was no written agreement and no accounting. After he paid out $8000 and it dropped off the credit report, he stopped making payments thinking it was past the statute. Well, they’re suing now for $17,857. They will only accept $12501 over 24 months after negotiating through his attorney. A lump sum of less does not appeal to them. They are now at the interrogatories stage. Any advise? Should he take the 24 mo. plan and try again with a lump sum at a later time?
Settling active lawsuits with a monthly payment structure will often require you consent or stipulate to a judgment. It may not be a good strategy to try to renegotiate after that.
It doesn’t appear that Citi is interested in accepting a lump sum, which seems odd. In fact, there’s been no negotiating. Accept or else! I guess he’ll have to see if they stipulate to a judgment. Is there anything else he can do at this point? It’s possible that he could win the case on a technicality as they don’t appear to have any documents of payments being made as they were made to another party with a different account number, but he doesn’t want to pay any more attorney fees and court costs. Thank you.
Continuing with defenses and additional negotiation efforts is the path in front of you. The additional legal bill is part of the equation. Ask your attorney what they realistically think they will settle at with additional efforts and then calculate the additional costs to get there. Is it worth it? If not, settling now with a stipulation, and for the amount Citibank is stuck at, would make sense.
Yes, he agreement stipulates to the entry of a judgment in favor of Citibank. Thank you.
Hello,
I regretfully have 3 citi cards all over the limit, totaling about $23,000. During Covid I had to take a large pay cut, I have been BARELY able to make my minimums, and I think this might be the start of not being able to since they are all so high and constantly over the limit. What is your best advice? I have other cc not citi, but they would be manageable if I could get the citi ones delt with better. I’m up to $1200 per month for the 3 citi in just minimum payments- it’s just too much.
Can you afford to pay 2 percent of your Citibank accounts each month? This would be around 460 dollars.
If not, and you decide to settle the Citibank accounts, how long will it take you to pull together around 10 thousand to fund the deals? Keep in mind you would have to fall late on payments, and part of your ability to raise the 10 thousand could be from saving up each month.
What do all of the other debts add up to?
Yes, I could afford $460 a month, but how would I go about obtaining that?
You could work with a non profit credit counselor who can typically get your payment reduced to an average of 2 percent of the balance monthly, and pay that back over up to 5 years. Call my hotline at 800-939-8357 and hit option 1 to connect with a counselor live. You may even get the payment to Citibank a little lower than 460.
Post an update if the lower monthly payment plan does not work for you, and we can go from there.
I lost my job May 1, 2020. Federal & state unemployment was a drastic pay cut. I continued to make my Citibank payments. In Sept 2021 when unemployment benefits ended, I could no longer afford my Citibank payment. I called Citibank – no assistance. First missed payment, due date 9/14/21. Then Citi increased my minimum payments. At 124 days past due, on 1/18/22, I entered into a payment agreement, during this call, I made the First payment same day, and the 2nd payment was set up by Citibank for 2/14/22. Even though Citi set up the payment (I have an email showing payment would be deducted from bank account 2/14), I saw online that no payment was scheduled, so I manually entered the payment 2/14/22.
On 2/16/22, Citibank charged off the account. They did not notify me, I was “notified” when I looked at my credit report. I have spent hours on the phone with Citi. I have my own copies of 3 calls recorded by Citi, each agent could see the account should not have been charged off and initiated an investigation to reverse the charge off and resume the payment agreement. Each agent said it would take 30 days, and I would receive notice in the mail after investigation completed. Citi never sent me anything about an investigation. After the surprise charge-off, I let the agents know I wanted to make the payments due – same day – if the charge off were reversed, and after the charge-off, I could not make payments online or view statements. Agents said making the payments would not help reverse the charge-off, investigation was needed, etc.
Numerous false reports to my credit reports even after disputing. My balance still shows on my reports. I have recently disputed the debt (account should not have been charged off) with the 2nd debt collectors.
In late 2021, Citi was calling me daily, 5 times per day. Phone calls are a waste of time, and they give me the runaround, transfer me, hang up, transfer me again, etc.
Do I have any options? File a complaint with the Consumer Financial Protection Bureau?
What is the main concern you have with the charge off reporting by Citibank?
Your credit scores were majorly impacted by the 3 to 4 months of missed payments preceding the charge off. Fixing that by settling the debt, rather than a payment plan that drags out the credit pain, is what I would typically want to do in this situation.
If there is something more specific you are after with getting them to change the charge off status, on what was likely already a closed account at the time, what is that goal?
One step forward two steps back is the situation I’m in at a 26.5% apr with citi, and the way this countrys going, I’ll never get out of it with minimum payments. It angers me with the greed of it all. Minum payments go up 20.00 every month!
How do I know if the citizens charge off was assigned or sold? I’ve heard that they sell the debts in bundles for pennies on the dollar.
Is this about Citibank?
How does Citi appear on your credit reports as of now? Is there a balance showing as still owed today, or does it say zero?
If zero, they likely sold it.
You can always call Citibank and ask. They will tell you.
Sorry, yes. Autocorrect got me! I’ll check my credit report.
I owed 33K to Citibank and was in a 60 month payment arrangement at $773/mo 9.90% APR starting July 2019 until I got sick and lost my 2nd job in late 2020. The agreement I signed with them said if I need to change the payment amount to call them, so I called them and told them I could only pay $386.50/mo. They said I can’t change the arrangement. I paid this reduced amount for 10 months and now owe $24K but when I log in to my account nothing shows up. I called them and they said my account is now with the “Recovery Department.” I struggled to afford the $386.50/mo and have $1500/mo (not including the Citi payment) in other credit card bills. What will happen now and do you have any suggestions? Thank you.
Citibank will likely follow their normal collection policies and procedures from here.
They could send your account out to an external collection agency.
They could sell your account to a debt buyer.
They could place your account with a collection law firm.
I could help you settle this account for 40% and pay that over a couple of years. Could you commit to a settlement with Citibank like this with confidence?
How? How would go about settling that account at 40% discount AND pay this amount over a couple of years? I’ve seen tons of videos and read much content on here and I don’t see how both are possible. Please elaborate as I’m currently 4 months into paying some sort of sustainability payment to postpone my charge off date another month. I owe Citi around 15K and would be very happy with paying $6000 (40%) with $250 a month for next 24 months. BUT my understanding is that the banks must resolve all their settlement agreements within 90 some days. So please tell me how this is possible? I will post on an appropriate website video also in case you don’t see this response on the website. Thanks!
Getting your Citibank account settled, and with a couple years to pay, happens everyday. It’s just that you have to let the card charge off, and typically land with a collection company. Some of these places allow even more than a couple years to pay, but the deals are closer to 50%. Let me know who they send your account to for collection and we can go from there.
Perfect. Thank you for the prompt response. I was postponing the charge off thinking that my best opportunity to “deal’ would be with Citi. I think that I will take your advice on this one and wait for C/O. Is it best to attempt to make a deal with the next people in line ASAP or is there a waiting period similar to the 90 days with the original creditor? My best egg account was charged off and sent to Resurgent (LVNV) in Nov 2022 and I haven’t done anything with this account. Is there a timeline for LVNV to follow regarding their purchased accounts? Don’t know what to expect here. Thanks again!
You really should schedule a call with me. You may have missed an important opportunity with Resurgent.
Hello there, I have found your webpage through my search of how to manage my debts with Citi Bank from my Best Buy card. I’ve just spoken with them and learned that my account is closed due to it being 145 days past due. The account has not been charged off (yet), but my goodness the balance has climbed with late fees and interest. It’s now at $8k and feels so incredibly overwhelming. They told me I can apply to have my account evaluated for the hardship program at which time they can spread out my debt to 58 months. I cannot pay them what they want me to in order to bring my account current. Any advice here? I have tanked my credit over the last year facing financial changes leading to my inability to pay. I’m embarrassed and ashamed and really not sure where to go from here.. thanks.
I would not do a hardship plan when this late on payments already. I would settle the Citibank account for less than what is owed instead.
You may not be able to negotiate the amount of time you need to pay, along with the 40% pay off with Citibank, but the collectors that get your account in about 2 months will be more able to stretch things out.
Are there other debts than this one, and if so, what do they all add up to?
Would it be best then to have it go to collections? I want to be sure I’m understanding you correctly. I don’t know how to settle this type of account. Best Buy and I left it as I would check my budget and see what I can afford monthly, then if interested in the hardship program call back with that number to set up payments. Between all of the credit card debts, I’m looking at about $14k unfortunately. I’ve considered consolidating but one company dropped my interest to 1% and Best Buy has dangled the carrot with the chance of 0% so I am not sure if consolidation would be best at the risk of taking higher interest rate. Thanks for your time, this is hard to talk about.
I would not do the payment plans with debt this old. It will hold your credit score recovery back.
Go ahead and schedule a phone call with me to talk strategy here: https://calendly.com/debtbytes/15min
I will be able to walk you though the settlement strategy on your Citibank account using your monthly cash flow.
We received a credit collection from D & A services. She made me give her my checking account number and was going to take 1500.00 from our account that we do not have. I was hoping to contact you direct because we thought this had been paid in full through debt consolidation. I am now disabled bc of seizures and migraines and my husband is disabled bc of his neck, black, and black lung. We are on a limited budget and would appreciate anything you can do to reduce this balance and allow us to pay within 3 to 4 monthly payments, our account number is [account number removed]. We sincerely hope you can help us as much as possible bc there’s no way we can pay the full balance, really not even half of it.
Who was the debt consolidation company you used?
OMG sounds like a zombie debt collector. If you gave her your checking account # there may be nothing more you can do as she now has the ability to take any amount of money she wants and your bank will give it and just charge you overdraft.
First are you sure this debt is real and correct? From my experience most debt collectors don’t just call the first time and ask for a checking account #. They send a series of letters asking for you to pay and each letter they will make the amount you have to pay less and less. For example the first time they will ask for the full amount, then a deal for 20% off, then maybe 50% off to settle, etc. A out of the blue call asking for an account number not a check to the debtor (citibank etc) is suspicious to me and sounds like either a flat out scam or a zombie collector trying to also scam you.
I looked up D&A services and they buy debts from third party collectors which means this debt has gone through your creditor, gone through a collection agency and has been purchased for pennies on the dollar by this company. If you have a $1500 debt they probably bought it for $1.50. You probably have already had this on your credit report, you may have already settled this (there is a high chance with these kinds of companies that they are purchasing settled debts), and this debt may be time-barred. Time barred means they can no longer sue you, garnish wages or benefits or take money directly from you, or put this on your credit report. At this point, if this debt is real (which there is a very good chance it is not) there is nothing this collector can do to harm you or get the money from you other than asking. If you don’t pay they have no recourse. I would not pay this kind of debt unless you morally very feel bad about the debt and have extra cash lying around to pay it. I have a feeling this debt either was already paid by you or was never your debt to start with. My guess is this is a scam, it is a common scam on the elderly or disabled.
Hi,
I cashed Citi check to pay my other card 15 months ago. I have excellent credit but I came to Turkey and got stuck here because of Covid. I don’t have a job and money. Living with my family here. 0% offer is due in May. I made several phone calls and jacked up my families phone bill for nothing. I offered them to settle my account but they said my account is in good standing and they have no debt settlement offer. So, what I am trying is, pay them lump sum less than what I owe without hurting my credit score. and get over with. Told them I am overseas and don’t know when I can come back. They can’t even find me and I am still trying to get out off my debt by paying them. No help! Right now I owe $4000.
Could you please tell me what can I do? Do I have to wait them to sell my account to collection agency? I am not eve able to get their mail? What would happen to me? Thank you.
By the way, I was living in Michigan
You cannot settle your Citibank account without hurting your credit. It is baked in the cake, and that goes for settling when current too, even if you could get them to go for it.
You do not have to wait for Citibank to sell your account to settle. I tend to see better settlement outcomes with Citibank when you are at least past the 90 days late mark, but often closer to 5 months late.
Thank you so much. Really appreciated.
I found out today my second citi account 14k (best buy) was sent to “rubin and rothman”. Looks like they’re a collection agency with attorneys on staff. The letter was just basic contact us letter nothing about litigation yet. Wondering what your experience is with them, settlement amounts etc?
You are about to be sued, so settlements are typically not great at this point.
You can prevent the lawsuit.
When did you stop paying on this debt?
How long ago did you open this account?
Account was about 5 years old good payment until my meltdown of finances last fall. The charge off was in May of this year.
Anywhere between 50 and 80 percent is most common at this point, for your situation.
Thank you for the insight, I will keep you updated as it progresses. Any advantage to waiting out for lower settlement offer even if it means beginning of litigation. Their initial offer was 70% on phone this morning. Not in position to pay that at the moment.
Hi, I really need an advice, I owe citibank around $10k of personal loans, unfortunately I lost my job couple years ago, my health deteriorate and I needed a surgery, I haven’t been able to pay for a couple of years now. How big of a trouble am I in and how can I find a way to get back on payment?
Once late on a Citibank debt by more than a few months, I would try to settle for less than the balance owed.
As late as your Citibank accounts are they have probably been sold to debt buyers.
Check your credit reports. Is Citibank showing as a charge off, but with a zero balance owed?
Are names like Portfolio Recovery, Midland Credit/Midland Funding, Cavalry, or other debt buyer showing?
Have you ever been contacted by a collection law firm on the accounts?
I want to pay my Citi card overdue
I have a citibusiness aadvantage card that was opened in 2008 and last paid in 2017 (I have 1 year to be time-barred). Suddenly I got a letter from Alltran asking me to write check to Citi directly. I will write a letter saying the debt is not mine. The business folded in 2017. The card was in my maiden name (my name is different now). I assume Citi still owns the debt or the check would want to be to Alltran right? Can I ask them to prove I am not an authorized user? Can they prove if I am or am not at this point? Why wait so long to send to collections (it is for 30+K)? I did add points to the miles that was associated with the card a few months ago, but the card and miles are distinct. No payment or any activity since 2017. Any advice?
Alltran is just a contingency debt collection agency. You could do nothing in response to Alltran and the account will get pulled back to Citibank.
I do not doubt that Citibank can prove everything they would need to with regard to collection, and Alltran would potentially get those details from Citi, in response to your debt validation request, if they wanted to try to continue to collect.
I am not a fan of debt validation letters when there is still a chance sending one could get you sued. More on that here: https://consumerrecoverynetwork.com/when-to-request-debt-validation-from-a-debt-collector/ and here: https://youtu.be/njtZRpCj_AQ
I have no intention of paying, its a business debt for a dead company. It has never and will never go on my credit report. Unless I get sued, then and only then will I pay something. But I will stall till time-barred as much as I can so that can’t happen. I did just refi, maybe that is why it came up again. Sounds like I should ignore and if I reply it might get expedited back to Citi because I have been found. What’s the worst that happens if I ignore?
The worse that happens with these types of things is you get sued, and how that results in extra ordinary collection options.
Is it weird that it took almost 3 years after last payment to contact me in any way and to make first contact through Alltrans? Most people seem to say they got contacted 60, 180 days after default. Its been 3 years, no calls, no credit dings, I did continue to get monthly statements with minimum due (past due month, late fee plus new months charge) for a few months after default but that was it. At this point I don’t even have any way to find out any info as I don’t remember the account number in full or the login/password to the online account.
Just a heads up, I just ignored all the debt collectors. As a biz card it never hit my credit report and I took the risk that since they didn’t contact me until 3 years after I last paid that they weren’t planning to sue. I just let this get time-barred. I still get letters but without a threat of legal action or hurting my credit, there is no reason to pay.
My name is Christopher Jones and our account says that we still owe money for Citi. When we have called they keep transferring us to other agents and no one will help us. How do we just simply pay off our card or collection?
How old is the bill? Is it showing on your credit reports by Citibank with a balance still owed to them, or is Citi showing a zero balance, and a debt buyer showing up?
I have a citi account that charged off and is now with Calvary, I owed 11,300 and I offered to settle account for 5,000 and they aren’t accepting my offer they want me to pay 7,300 to settle. Account is about 2 yrs old. What can I do to get them to 5,000? They claim this account is close to being placed with a law firm to sue me.
I often recommend working with a pro to help on accounts Citibank sells to debt buyers. Would you like some help with this?
Hello Michael,
I was just informed that my CC was charged off and my CC limit closed.(April 4th) I have just spoke to the Collection Agency Alltran and arranged payment in full. Is there a chance I can have this removed from my Credit Report once the balance is paid? Does this mean Citi has sold the debt or did they just turn it over for collection? Thanks in advance for some info.
Best regards,
Marion
Alltran is a contingency debt collection agency, so Citibank has not sold your account to them.
Citibank is not known (no bank is) for deleting paid collections from your credit reports, but we can still accomplish credit and finance goals with a paid collection on them.
Hi Michael,
I was just served with a summons from Cavalry. $2,772,99 balance, $2,207.78 principle then fees and interest. I’ve been paying off other debts (that didn’t get to the point of being sued), and was planning on getting to this one after taking care of the others. My question is- Is it still possible for me to deal directly with Citi, or is it too late for that?
It is too late to negotiate with Citi when they have sold your debt to a debt buyer like Cavalry. We can often get good outcomes on settlements with Cavalry, Midland Funding and Portfolio Recovery, so if you need help, it is affordable.
do I needto contact cosco or citi bank to ask for a lower interest rate. I’m not making but very little head way with regular payment and then an extra mid mo. Will they negotiate the interesy rate?
You would have to contact Citibank to ask about any interest rate reduction.
Most banks are not all that open to lowering interest rates until you fall behind.
Hi Michael! I am in bad shape. I lost my business and have about $260k combined debts. My household income is $5k a month. I have equity in my house but I don’t want to touch it because that is my wife’s full savings, and I’d rather get sued or settle myself. I have about $25k saved and that is all.
Kindly guide me.
I recommend clicking on the get debt help tab, and building your user profile, then scheduling a call with one of us to go over your options.
Hello Mike. I received a letter from quite a few firms informing me that Citibank filed a lawsuit against me. I have not been summoned yet and I’ve been trying to reach the attorney citi bank has on the paperwork with the case number but I have not received a phone call back yet. I just finished payment for another creditor with a settled debt (literally yesterday) and I am just now able to focus on Citibank. But now theres a lawsuit I still cannot afford the full payment balance about ~$9000. It has taken me a REALLY long time to have money saved to afford a living and paying off my other debt (being I was able to reach a settlement with them first). I would much like to settle for less than what I owe and am willing to pay back at most 50% by monthly installments for at least 90 days and I want to discuss this with their lawyer but I can’t get ahold of their lawyer. I’ve always had the intention to pay them back but I can’t pay the full balance if thats what they want, especially in a short period of time. I would need a least another year or more. My question is, do you know what I should expect next or what other actions I can take? I’m trying not to take this to court if I can
Citibank is not all that active with filing law suits, though I do see a few each year. What I see mostly is Citibank selling unpaid debts to a few large debt buyers, and those guys suing.
Does Midland Funding, Portfolio Recovery Associates, or Cavalry sound familiar?
How can I make payment arrangements with Citibank I have tried to get a hold of about anyone to stop the court proceedings against me I am retired and live of social security 590 dollars a month my husband has an account and only gets a small pension and his social security
Who is the named plaintiff on your lawsuit?
This is my exact question. I called on my $687 balance and they told me the account was too old to pay by any way other than mail. If that is the case, why are they still reporting the account? I tried to settle, but the internal recovery unit told me the account was too old, but I can make a “courtesy” payment.
When did you stop paying on your account with Citibank?
What state are you in?
I am experiencing the same problem, however Citibank has an active judgement against me, the plaintiff attorney listed on the court case says they are no longer handling the case and to put me through to the Citibank recovery dept, where I was told the account is too old but I can make a courtesy payment. However they won’t put this in writing and won’t submit a letter of satisfaction to the court. I’m trying to satisfy the judgment but am being told that I can’t. What recourse do I have? This seems highly suspect. 1. If the plaintiff’s attorney is no longer representing the plaintiff they are supposed to notify the court, which they have not, and 2. The debtor is due a clear path to repay an active judgement. 3.the plaintiff is required to submit a letter of satisfaction.
I would talk your situation over with an experienced debt collection consumer law attorney.
Hi Mike, we spoke about a month ago. Last month I received an offer from Citi to settle a past due account I have with them more than 150 days. My balance is around $52K and the settlement was for $20.5K. The terms was to make the full $20.5K in 60 days with three payments. I advised when I called them that, I could make the full payment in 90 days, not 60 days. The representative at Citi ( her name TANYA), informed me that, “If I made an $800 payment, it would buy me an extra month, and I would be able to call her back after the month and they would honor the settlement amount of $20.5K stated in the original letter.” I went ahead last month based on her advise and agreement and paid the $800 with the understanding that I would call her back today to continue with the original offered settlement term. When I called her number, which she happened to have advised me was her direct line, someone else answered. I explained to the new rep the whole conversation with Tanya last month. The new rep advised me that offer was off the table and now if I wanted to settle, the new amount is $25K! We went back and forth and I expressed my discontent with their misleading information from last month. The new rep threatened with charging my account off immediately. What now? Can I expect another settlement letter with the original offer of $20.5K?
I would not expect another offer letter, though it is possible depending on how late you are. When did you stop paying?
You can often duplicate the 40% offer after charge off, and with the collection agency they place the account with. But if they sell the account to a debt buyer, the deal may be more like 45 or 50 percent, but you can negotiate a good amount more time to pay the deal.
Prior to the $800 payment I made last month, the last payment I made was in Mar. 2019.
Account showing 126 days past due. Should I continue to hold for possible new offer. I had every intent to pay the first offer off and I advised them of that. The timing was off by 30 days. I’m just not willing to pay them at a $5K difference to their favor.
I received a letter from Radius Global Solutions, LLC located in Minneapolis, regarding a Costco Citi Bank debt that is in collections. How do I know if Citi Bank sold off my debt or if they are collecting on behalf of Citi Bank?
Citibank currently sells debt to PRA, Midland Funding, and Cavalry.
Radius Global is a contingency collection agency, and not a debt buyer,
You can always call Citibank and confirm with them whether they sold it or not.
My husband and I have a Costco Citicard for many years. He was considered the primary and I an authorized user although I managed the account completely paying the full balance each month. We have never carried a balance, and our credit score is excellent. My husband passed away less than a month ago. Upon notification of his death Citicard cancelled both our cards, and allowed me to open an account with only 38% of the previously credit limit although income level will be virtually unchanged. I was expecting a final bill from Citicard. Instead I am being contacted by a collection agency. Is it normal that Citicard does not send a final bill and sends your account directly to collection? Will this affect my credit? Should I work with Citicard or the collection agency?
I do seen this happen from time to time. As an authorized user, if the account goes late, it can show on your credit.
I would call Citi and verify the name of the collection agency they sent it to. If that matches with who you heard from I would have no problem paying the bill with them.
Thank you. Surprised by the unintended consequences in this situation. Although everything is paid timely, I, the authorized user, now have a new account with substantially lower credit limit as well as limited age history. Fortunately I also have credit independent of my spouse, but I did not plan it that way.
Citi health Mastercard account is in debt consolidation. The company sent them settlement proposal offer to Allied Recovery but has not yet responded to it. What do I do.
How late are you with your Citi account?
Is Citi reporting on your credit with a balance still owed to them, or does it say a zero balance?
I currently have a balance on an Elan Financial account that had been charged off in 2016. I made arrangements to have it paid off on a 5 year plan through them after the charge off. I am scheduled to finish paying the charge off in 2021, but am trying to find ways to save money for other bills I am responsible for since my divorce. Would it benefit me to ultimately stop paying the already charged off account? I live in Texas and have read much about being “judgement-proof”. Please advise.
Sorry, forgot to include the balance… currently $2765, was in the 7000 range prior.
If you cannot afford the payments it just is what it is.
You may want to circle back and settle the account for less later on though.