US Bank Debt Settlement and Hardship Payment Plan Policies
I have my checking account, savings account and 2 credit cards with US bank. I cannot keep up payments on both credit cards and the one with the highest balance is late almost 2 months now. I have had payment programs offered to me over the phone that I could possibly swing but not sure if I can keep that going. I have been cut to 4 days a week at work.
Will US Bank settle one account while I am current with another credit card?
—Hope
US bank and Elan Financial do offer pretty fair hardship payment plans on personal loans and credit cards. What was the interest rate reduced to when you went through the financial questions they asked in order to qualify you for the lower monthly payment program? You need to be confident you can consistently make the lower payment. If it is a squeeze to commit to the new lower interest credit card payment, it may not be in your best interest to accept the lower monthly payment option, and instead look to settle your credit cards with US Bank for less than you owe.
If you do accept the payment plan, be sure to ask about re-aging the account where they will bring it current on your credit report which can be a benefit to your credit score compared to late payments that show on your credit reports in perpetuity. You can generally only re-age the account once and usually only within the first 90 days of delinquency. You may need to have made several months payment on the new plan before the reaging occurs.
Your other credit card with US bank with current payments is a lower balance, but what is the interest rate on that one? Is it higher than say 15%? What if you were able to get both accounts into their lower monthly payment plan?
Settling Credit Card Debt With US bank or Elan Financial
It is generally best to settle credit card debts with the original bank issuing the card. Your concern for having checking and savings accounts at the same place is real. They can see those accounts, the balances, and even the way you spend money.
- What are the balances and interest rates on the two US bank credit cards?
- What amount do you keep in your savings account?
- What are your expectations for settling the credit card account?
- What amount of money can you realistically come up with in the next four months in order to settle the account before it is placed with an outside debt collector after charge off?
- If unable to come up with enough money to settle prior to charge off, what amount of time will it take you to gather the money needed to fund and complete the settlements?
- How tight is your monthly cash flow? Have you considered bankruptcy? Do you know if you qualify for chapter 7 bankruptcy?
Having said that, yes CRN can either guide you through getting the best credit card debt settlement savings with US bank, or get a good settlement for you if you request a professional do the negotiations. There are some things you should be aware of and some adjustments you may need to make.
I would encourage you to consider consulting with a professional in the network so that you can get into the details about debt settlement that you need to know before committing to any debt relief plan. You can reach me at 800-939-8357, choose option 2.
You are also welcome to post answers to my questions in a comment reply below. I can provide more specific feedback if you do.
Any reader with questions or concerns about settling a debt with US Bank or Elan Financial, or getting set up with a reduced payment plan, can 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.
Hi, Michael. I am getting divorced, and my spouse has been redirecting income since Feb 2022, but we have no temporary orders (or permanent ones). He has been giving me money each month, but it has not been enough to keep up with everything. My question is this: how do I answer questions regarding my income and expenses? For instance, he was paying the mortgage consistently, so do I say that I have zero mortgage? His income is high, but he’s deciding how much to give me and the kids each month. So, do I give an average of the monthly amount, zero because there’s no order, or the most recent amount? I appreciate your time.
Are you negotiating a debt with US Bank? When did you stop sending in minimum payments?
Do you let a balance charge off or pay $212 to save it from charging off another 30 days and try and get a better settlement amount right now they are offering 60% i want half of that
Sometimes, but not always. What is the balance owed?
I got into trouble with credit cards 12 years ago.I settled with them all except US Bank
I talked to a rep and he asked me how much I could pay . I said $50 so for over 12 years I have had it taken from my checking account ,BOFA. They just started to refuse the payment and sent to collection I still owe about $10,000. I could pay a lump ,sum of 49 to 60 %. Do I deal with the bank or the collection agency?
Who is the collection agency US Bank sent your account to?
Altrans financial
You can deal with Alltran. You should be able to hit your settlement target with them too.
If you run into any trouble let me know. We have help available.
Hi Michael.
I have a question thread on a different page, but I am adding one here as it relates specifically to US Bank. settlements.
US Bank has an option on their website to click regarding payment options. It asks for numbers for income and expenses and how long the hardship is expected to last. Settlements are offered right on the website. This might be a good option for some of the more shy people, or those with personality types that are not suitable to negotiation by phone. I have found US Bank to be the most aggressive (at times) and manipulative (at times) in my interactions with them (compared to the other creditors) and therefore the web approach is a welcome option.
The rate that the website just offered me is the same that the phone agents offered.
Do you happen to know if the same outcomes can be obtained in this manner? It seems that one would have to call in to submit their own offer. However, on my calls, the agents aren’t entertaining offers anyway. They tell me that they “put in the information and the computer gives them a number”. They don’t seem to have any authority to move on the numbers. On my last call, I said, “let’s get this down a little it and get this finalized right now”. the agent did not say “no”, but they indicated that they did not have any ability to make a deal.
– So, what do you think of the website approach in general?
– Do you think checking (and calling for that matter) too often makes one too eager and less likely to reach a good number?
– Are agents powerless to make deals, or are they playing me?
– Finally, have you seen settlement offers go UP again as they approach charge off, or is that not a thing?
For any of the new readers out there that are skeptical (and this is a certainly healthy position to have), I can attest that Michael Bovee is the real deal. I have experienced nothing but honesty and accuracy thus far.
Over communicating your eagerness to settle in the earlier stages of collection is a tip off.
Your situation, as I know it from the other thread, is you are too early in the process to realistically expect better offers.
Collection people at US bank may simply be limited by how late you are, but could also need a manager approval to go lower than what is on the screen even if you were the right amount of late on payments.
There are settlements that are simply locked in by policy, and nothing will shake that loose.
Some banks online offer systems are good, others not so much. And these systems change more than the dialogue and process humans at the bank are trained in.
I see these automated systems as fine for some, and not for others.
Trained professionals beat these deals, and a consumer can often produce better outcomes on the phone.
Anyone not up to the process of live calls may like the automation, but could be giving up more money than necessary.
I have seen banks increase settlements over time, during the first 6 months of delinquency, rather than reduce them. It is not common though.
Thank you for the good advice.
I wanted to give an update that I ended up settling US Bank at 45% by using the website. I was being offered the same rates by phone and the regular phone agents have no ability to deviate from what comes up on their screens. I suspect that one could probably negotiate better terms in the time period just prior to charge off if they could escalate to a manager or someone that can perform actual negotiations. In my case, I had motivations to settle quickly.
The interesting thing is the settlement agreement itself, which I just received by mail. It lists the amount with a due date 90 days out from when the settlement was made. However, they require that the minimum payment on the account is made for each of the monthly statements during that time. They are not very clear or up front about it, and I suspect a great many borrowers may not understand and slip up.
US Bank says that if a minimum monthly payment is missed, the account will immediately be charged off. People don’t know what this means unless they are in the industry or are reading your website.
Some people will read the wordy letter, comprehend some of it, then see the clear number amount and due date 90 days out. I almost did this same thing.
So they are betting on customers paying something toward the settlement, and then ending up with the settlement voided and selling off the account at its full original value minus the recent payment(s). It is very clever.
BofA was very clear and straightforward with their settlement. People should be careful that they fully understand the terms of the settlement with US Bank.
Does this sound about right? That I have to log in any pay at least the minimum balance showing each month during a US Bank settlement?
Thanks!
It would help to see your US Bank settlement letter before commenting. You have my email address. If you do not mind please send it to me. I will post to this comment thread after I review it.
I received and reviewed the US Bank settlement agreement letter you sent. I would be okay with that letter if I were settling my own account with US Bank.
They have added the confusing language about how your account could still be charged off in the normal course of their internal processes, and while you meet the letter of the settlement agreement, but that is not of consequence to your settlement (so long as you pay by the date listed).
They could have done a better job of wording the letter to point out that any charge off does not impact the settlement agreement.
Few settlement letters will contain the language this one has on this issue. When you see additional language like this with an individual creditor it is often because of past litigation, or a regulator action or practices audit surfacing something that needed to change. Not all banks stick the landing on the change.
Thank you.
The thing I found most concerning though, is that they make it appear that only one payment is due 90 days out. That much is clearly listed.
However, in reality the debtor has to also pay the minimum monthly payments during the settlement (the first of which is quite sizable due to accumulated interest and late fees). There would be three such payments due prior to the final due date in my case. These amounts are not listed on the settlement letter. And you know, we are in the habbit of ignoring the bills as we try to go through this settlement process. One has to log into the online account to see the monthly amounts due. I will do this.
I just saw it as a tactic by US Bank to get people to make that first big payment (which is all fees and interest), and represents a good chunk of the settlement amount… then hope that people are .late or miss their next monthly payment… at which point they can charge it off at the full original debt amount. I do not think it is an accident that the letter is not clear.
It just seems like more games to me.
The point is just that readers handling their own maters should carefully read the terms of their settlement letters to be sure that they make the required payments. The other bank was clear and upfront about it. US Bank not so much.
Thanks on behalf of all of us for your advice.
I have a credit card debt that has been charged of if about $2500 with US Bank I currently don’t know if a collection agency has it but it’s been close to 4 or 5 years since the debt, is there a way to settle for less and have it removed from my credit report? What percentage is good to settle on?
You can settle it for less with US Bank, or whoever they have it with for collection. US Bank does not do pay for delete though.
They will update to show a zero balance owed after you complete your settlement.
Most any credit and finance goal can be accomplished with a paid collection on your credit.
I have $6200 debt with U S Bank, I have never been late with a payment in many years. Our ability to continue to do this has hit its limit. We are borrowing from Peter to buy Paul. If I call them do you think I could get them to settle for 2500 paid in full?
Not when you are current with payments.
You typically want to be 5 or more months late to target the best settlement outcome with US Bank.
Thank you for your answer. What is usually the amount, percentage wise, that I should begin my offer to settle my debt?
It can vary at the time you are negotiating with US Bank, but as of today, were it me, I would start off with a round dollar number closer to 20 percent.
Thank you very much for your help.
Is it possible to negotiate to have the debt removed completely if you settle for less than owed and pay it off?
US Bank does not do pay for delete, but a couple of the debt buyers that they sell to will.
How late are you with payments to US Bank?
I owe 2000$ to Elan, they just offered me 40% which I’d take, but will it ruin my credit score for 7 years?
No, settling your Elan account will get it to show a paid collection on your credit. That is better than having an unpaid account on there.