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You can ask just about any debt and credit related question here and get a dedicated reply by email. This is not published anywhere on the site. Sometimes I reply with questions of my own before I can offer actionable feedback.
correction…
*they literally offered them,
Hi Michael,
I am juggling several debts which total around $8000. So far, I have been able to (just barely) keep up with slightly over minimum payments. The highest interest account is a GE Capital/Amazon card which I (stupid, I know…) let get up to 2200. The interest alone is almost $50/month. Right now I have about $2000, which I would like to use to pay down my debts. I am considering just using it all to pay off the Amazon, as the interest is ridiculous (26%!!!) Do you think there is any wiggle-room to settle the debt for less than what is owed, when I have kept up with my monthly payments thus far? They have charged me over $400 in interest just this year alone…and nearly $500 last year. I would love to be able to pay off something other than just Amazon account, or at least part of something else which is at lower, but still much too high interest (Bill Me Later, $1200 at 20%…) I feel like such an idiot for getting suckered into having these accounts…the literally offered them, then kept raising the credit limits (on their own, not at my request….) until I can barely make the minimum payments and will be paying on them for ever. I know, just because they raised the limit didn’t mean I had to use it…I think I finally learned that lesson this time. I also don’t want to totally destroy my credit rating….
What do you think would be the best course of action for me to take?
Thank you!
Suanne
Suzanne – You are in good shape to apply a debt roll-up strategy to rapidly pay down the balances and not impact your credit score. You could also consider consolidating your debt through a consolidation loan, or by simply getting your interest rates lowered and your monthly payments reduced through a credit counseling program.
Settling debt requires you to miss payments. Missing payments means a hammer to your credit score. That is not something you want unless you have no other options. I would look at the debt roll up strategy first. Applying the 2k you have on hand to your debt, and continuing to budget and pay off the other debts using the same amount you budget for today, all the way through to paying off your final debt, takes commitment. But you preserve your credit and can develop some rewarding habits around managing money in the process.
Thank you for your prompt response, Michael…I looked over both those options and I have a couple of questions. On the Debt Roll-up, would it not make more sense to pay off the account with the highest interest first, rather than the smallest debt?
For the Credit Counseling option, I actually looked into that earlier this year. They gave me detailed information on how much the interest rates would be reduced, and how much I would be paying them to manage my accounts. It sort of looked to be somewhat of a wash, in terms of what I would be paying. For instance, they said the GE/Amazon interest would only go down to around 17%, but I would be paying them $10 a month to manage each account (up to $50 max). The only one of my creditors that they said would go down to the range mentioned on your Credit Counseling page (1.5-2%) was Chase. In fact, they said CapitalOne would not make any concessions on their 15% interest rate (I have 2 accounts with them-one which was originally Orchard Bank…and one of the two has now increased the interest to nearly 19%) at all.
I just saw my credit score this morning (667), as I had tried to apply for a debt-consolidation loan from Prosper, for which I was notified that I was not approved because my score was too low. If I do the debt roll-up, starting with paying off Amazon (right away) and then applying what I was paying them to the account with the next-highest interest rate (Bill Me Later), and continue down the list, how much would that help boost my credit score compared to using a Credit Counseling program?
Suzanne – It does indeed make the most “cents” and sense to pay the highest interest debt first. There are reasons people will opt to pay the lowest balances off first too. I can argue both sides, but it really boils down to the person, their habits, and the cash flow.
Lump sum pay off dollars like you have can be used to pay down high interest debts to get the most savings from the process, and can also be used to target debts that, were payments applied correctly, could bring your account utilization to a recommended level that could bump your credit score too. You are not far from the score you need to get approved for either Prosper, or Lending Club.
Credit counseling payment reduction proposals are partially scaled to automation, but not fully. Each persons situation will dictate what interest rate, and thereby what payment reduction, you would achieve through the DMP. In other words, in many instances the interest reduction is needs based. That is not always going to be the case with all creditors. Some just will not reduce the interest. But I suspect the information you provided the credit counselor did not show you as someone on, or near, the financial edge.
Credit counseling programs are not going to boost your credit score. In fact, because the accounts enrolled are closed, you don’t really impair your score, but remove active and open revolving accounts, which does close off some positive attributes to your credit profile.
If you want to post each account balance rounded to the dollar; the account balance limits; and the interest rates for each; over in the comments of the debt roll up article, I can offer some additional feedback on meaningful credit bumps you can look to accomplish. I can also send you the excel sheet with formulas I use for the exercise you see as the example in that post.
Michael,
I would really appreciate your advice on this…I will post the account balances, creditors, etc. in the comments on the Debt Roll-Up page on Sunday, and I look forward to your response. I will hold off on paying off Amazon till then, even though their interest rate is really making my blood boil…(it’s my fault, I know…I think I finally learned my lesson…)
Thank you!
Look forward to it.
Hi Michael:
Just touching base to see if you have had a chance to offer any feedback on my DIY-er plan to recover my spouses credit! Thanks in advance!!
Melissa
Hi Melissa – Thanks for your patience. I posted my feedback with questions for you to answer in the comments of the new page. See https://consumerrecoverynetwork.com/question/how-best-repair-credit-score/
I am being sued by a collections agency in Miami, FL.The original creditor is Bank of America and the amount is for 1450.00 they sold it to CACH, LLC. I have a pretrial set for October. I am a single mother of two small children and I am currently on welfare. Thankfully i am not unemployed but i currently do not make enough money to pay off my debts. With that being said I cannot afford an attorney to help me with my situation so I am going to try and do this on my own. I need help as to what I should do please!!!
Hylde – I cannot offer you effective feedback on what to do’s from the other side of the country. Qualifying for different welfare benefits means you would likely qualify for low income legal aid. I would encourage you to consult with Dade Legal Aid, or Florida Legal Services.
You may not have to work your way through this on your own.
Hi Michael,
I wanted your thoughts/advice on the following… I have 3 credit cards that are closed (2 of those are charged off, and 1 is closed but still with the bank). I’m currently making monthly payments on one of the charged off cards (will be done paying it off in November), and I’m also making monthly payments on the closed card with the bank (won’t be done paying that one off until early next year). I only have 2 debit cards now (I bank at two different branches), but I really want a secured credit card. I’ve been reading up on secured credit cards and am interested in getting one. I ONLY want one for necessity purposes, like when I rent a car or need to book a flight. I have absolutely no intentions of using it for shopping or frivolous things, as I’m not trying to get into more debt–ever again!
What are your thoughts about applying for a secured credit card when, at the same time, paying off current debts? Am I likely to even be approved for a secured card if I do apply? Will it make my credit report look worse, having a secured credit card on there while still paying off debts?
Your help is appreciated.
Thanks,
DMG
DMG – Applying for a secured card prior to accounts in collection being updated as resolved may/may not be difficult to get approved for. You may want to check with one of the two banks you have accounts with about what secured card products they have first. I have worked with people who had been turned down by others based on accounts outstanding in collection, but get approved with their bank they have a checking or savings account with.
I would not expect your credit to look “worse” by adding a new secured card. Having an active card like this is a tool to recover your credit over time. But with unresolved collections still on there, any positive impacts will likely be imperceptible until several months after those negatives are updated as paid and a zero balance owed.
Whats up with the third account you mentioned?
Hi Michael–thanks for replying back.
1.) I have a credit card through a bank that hasn’t been charged off, but the bank closed it. The account is still with the bank and I am currently paying the debt off. This bank does offer secure credit cards, but I’m not sure if I’d be approved for one since I’m currently paying off my unsecured credit card I had with them (the one that’s now closed). From past cases you’ve heard about/seen, do you think the chances of me being able to get a secured card right now with them are low?
2.) The second credit card was a credit card (not through a bank) that was charged off and I’m currently paying back the debt on that one. I will complete all my monthly payments this November. Can’t wait to be done with it!
3.) You asked about my third account…that’s another credit card through a bank, but this one has been charged off. I’m not currently paying back my debt on this one because I’m working on paying off the two previous mentioned credit cards. Also, just FYI, this bank doesn’t offer secure credit cards.
Having given you a little more insight into my status, what do you think my next step should be? Should I apply for the secured card with my bank? Should I apply for a Capital One secured card (I read that this is a pretty good card)? Or should I not apply for a secured card altogether?
Thanks,
DMG
DMG – If it were me I would not apply for any credit until I had at least one of the 3 updated as resolved on my credit report (likely 2 of 3).
The other account that is not being addressed is likely with a collector now, or soon will be. You will appear more collectable when you have hard inquiries on your credit report (collectors have access to your credit reports). If your intent is to settle or otherwise resolve that third account, I would probably wait until I have something locked in with them.
The above, combined with the lower odds of getting approved right now, would mean waiting a bit more to begin the credit improvement makes sense.
Thanks, Michael. I appreciate your follow up!
Yes, just being vigilant. Always wanting to better my score if possible. I appreciate your time.
My credit score is actually 692, so not bad. I want to know if this is still out there, but don’t want to call and stir it up if I don’t have to.
I hear you. It is sometimes better to let things lay. Are you just being vigilant with monitoring your credit, or do you have a credit product goal in the near future, say one to two years?
I will have to pay for another report because I did the annual one this year already. At that time I believe it said charge off. I haven’t heard anything in 6 months or so was curious and checked credit karma and quizzle. Both show Wells Fargo acct closed $0 bal- obviously to them. Would it show who it was sold to or in fact if there was a judgement at this time even?
Slk – The free reports out there, those you mention and others, show most of what is on your credit report, but there can be gaps and things missing. Based on who is collecting now, it appears the debt was sold to Midland Funding LLC, and MCM is trying to collect on that. This fact will show on your credit report with a new entry from the debt buyer more often than not, but there are instances I have seen where it doesn’t. As far as a judgment showing, were you sued?
No, I was not. Would that happen first? I haven’t received anything of that nature.
The collection lawsuit comes before the potential judgment that would appear on your credit report.
What is your current goal? I know you are concerned about your credit. What are you looking to accomplish?
I had a charge off with Wells Fargo 2-3 years ago. I received a letter from mcm stating to pay them. I sent a debt validation letter and finally received very little info back 6 months later and have not heard anything since. I checked my credit report today on credit karma. It says Wells Fargo-account closed. This area says 0 derogatory remarks and scores me an A. No where on my report is there anything showing neg actions.
What does this mean?
Ski – I would have to be looking at what you see to offer anything beyond a general comment.
CreditKarma may not be showing you everything that is actually on your report. I say this because an unpaid debt to Wells Fargo would have been charged off. That is a a credit report and credit score negative, and should not score and A in the traditional sense. With MCM collecting, it looks like Wells Fargo sold the debt. In that case Wells would show no amount owed because nothing is… to them. They sold the legal right to the debt.
If you have not already, access the free reports you have every 12 months from the major 3 bureaus. Look to see what collection accounts are reporting.
I have been reading your posts and I hope you can help me..I was just served by capital one..the court date is in August I owe 11,000. The came and phone number of the attorney is in the paperwork. Along with a verification from capital one. Can I contact the attorney before the court date and work out a payment plan?? I can’t afford to pay them all at once. I got this credit card over the Internet. Do you think they will settle before the court date? Any advise you can give me would be very appreciated. I don’t know where to start…
Velda – Yes, you can set up a payment plan. You are going to need to be prepared for them asking you to sign a stipulation or consent to judgment. Read more about dealing with this type of scenario here.
While you may not be able to pay the full amount to them all at one time, you may be able to get relief by negotiating a lower pay off in one lump sum. What amount of money can you raise quickly?
Good Afternoon:
Here is my question. My original creditor is Capital One. I was contacted by a company called Northland Group, they stated they were representing Capital One. I agreed to settle the debt down to $2k, the original debt I think was around $3,500+-. It was broken up into payments of $166-+. I started paying. Each month I would receive a receipt and I kept my bank statements. The payments started back in June 2010. I was unable to make the agreed upon payment on time until Jan. 2011. So I called them to explain I had a utility bill that needed to be paid and that, that month’s payment would be 2 weeks late. They then told me that if I didn’t give them any money, that the deal would be off and the amount paid so far (approx. $1100+-) would not count and the amount would go back to the original amount owed and I would lose the money I paid. Well, since I couldn’t pay they stopped talking to me. A few months later I received another collection letter from Midland Credit Management. They then told me that I owed them approx. $2500. I wasn’t sure who to believe. On or about Jan. 12, 2012, I was served with a lawsuit from MCM requesting approx. $1,100. I started to pull my credit report. They listed themselves on it saying I owe $2,500. When I filed a dispute with the Credit reporting agencies it kept coming back as a valid debt. After several disputes I was able to remove them from one agency. I did file a timely response to the lawsuit. They sent out discovery requests. They asked about they payments I made, and in the Request for production of Documents I provided the proof that I was already in the middle of payments and had no knowledge that the debit had changed hands again. I tried to communicate with the attorney of record, however, to date no response has been received. I was told by MCM they have no knowledge of this debt. Fast forward to today. Friday, May 31, 2013, is the trial date. I have all my evidence that I had arrangements and was paying on this debt. I want to fight them. So basically here are my questions. Can a credit collection company just take the money I was paying on a settled debt and act like I never did anything? Do I have a leg to stand on come Friday? Is there some sort of case law that I can use to fight what was done to me? In my response to the court I asked that the amount that they are suing for be reduced by the amount I already paid to Northland Group, since MCM refuses to acknowledge that those payments were made. I live in California. Please help. Thanks
carla – Your prior payments should be applied to the balance owed. Bring all of that documentation with you to court. I cannot say what leg you have to prop you up in court later this week, but the prior payments with proof from bank statements etc., should win the day as far as the amount you owe.
It is always a good idea to connect with an attorney of your own when you are in the courts. You would want to connect with one that has debt collection defense experience. I can email you contact info for an experienced attorney to consult with on this. Just post a comment reply that you would like for me to do that and I will send that along.
That would be great if you could give me some information on that. Thank you very much.
In 2010 I was sued by an attorney in West Palm Beach that says they are representing CitiFinancial Services. Citi charged off the debt in June 2010 but the court docket shows that 15 days later a final summary judgment was entered against me. I don’t believe that the court is aware of any record of the charge off or that the account has more than likely been sold. Three (3) years later I get a letter from my employer saying that a wage garnishment has been put in place. Do I have a leg to stand on if I ask the Court to vacate the judgment if Citi is no longer the owner of the original debt? I have filed a claim of exemption based on Florida statutes but the plaintiff’s attorney has moved to strike and now there is going to be a hearing next month.
Timothy – Debt gets sold in the normal course of lending and accounts going into default. So much so that virtually any contract for credit has an assignment, transfer, or sale clause to it. CitiFinancial Services legitimately sells debt when they charge off. Even judgment debt can be sold.
Your claim of exemption is another matter. If you meet the profile for exemption in Florida, either fully or partially, the judgment creditor will be limited in what they can collect. If you are fully exempt, you may not always be, so coming up with a debt relief strategy for the judgment, like settling for less, will look good to a creditor who is otherwise unable to force payment.
No, I do not think you will have much success with getting the court to vacate based on what you shared. But you should connect with an experienced debt collection defense attorney and run this scenario by them to get the type of opinion you need.
If Citi’s attorney bought the debt after the charge off would the original lawsuit by Citi still be in place or would their attorney have to show that they now own the own the debt and a new lawsuit have to be entered?
The original citi lawsuit would be in place. There would be no need to sue again.
Michael,
We are a family that finds ourselves in this terrible situation. We are not lazy or expect other people to pay our way. It is the opposite for us, we have worked hard and all on oir own.
We borrowed on cc to save our home when the economy tanked. Our monthly income went from $5,000 to 1,800 monthly. We could not by jobs. We cut every corner we could. We called our creditors and told them we could not pay and send them what we had, at times $25.00.
We are slowly rcovering and we just got served by a lawyer that Capital One turned our 10,000 debit over to. We have have been making monthly payments of $100 to the lawyers and now they sue us. If we had it we would pay it off.
I get that cc companies are not being repayed everyday. We have always had every intention to repay what we borrowed.
We have about $2.000 in savings, do we use this to hire a lawyer or do we beg/borrow the $10,000 ?
We are just tired of feeling like losers. Where do we turn?
Maria – Getting debt relief with Capital One once they have sued is tougher than many/most other creditors. I would encourage you to come up with another 5k, so a total of 7k to settle. You may be able to get the relief you need with a little less than the 7k, but it won’t be by much.
If you were able to come up with the money, how long would it take you?
What state are you in?
We live in Ca.
I am confident that we can get the 7k within 30 days. Would we prefer to agree on a payment plan. Do you think the lawyers would agree to 250-3oo per month.
Do we deal with Capital one directly or the lawyers that served us?
Do we respond to the summons or contact the lawyers directly .
Do lawyers settle out of court after they serve you? Are they bound to carry out the suit?
Thank you for responding
Maria – Getting 300 monthly payments will be to pay off the balance, you will not likely be able to make those payments towards a settlement. Credit card lawsuit do settle out of court, but if you do monthly payments, the attorney will likely ask you to sign a consent to judgment anyway.
I would recommend you respond to the summons. I can refer you to an experienced collection defense attorney in California if you would like. Just let me know and I will email you the contact information. You could probably get some extra time to pull your funds together by working with your own attorney, and you may learn additional things to consider in the initial consult with the attorney.
You would have to deal with the lawyers, not Capital One, when resolving this.
Thank you !
I am starting to get how works.
The lawyers want to get paid in full, fast. Their time is how they make a living.
Yes, please forward the lawyer referral you mentioned.
We considered hiring a lawyer and we got overwhelmed by the sheer number of them.
Thats how we found you.
Thank you giving us direction and please contiue this priceless service to those who ffollow.
Blessings,
Maria
I have been trying to figure out whether to do consent judgement with a Visa card from my credit union whom would not work with me on small payments last year while I was going through financial times… I paid a lawyer to help me write a denial answer to court since I’d felt uneasy when the attorney that is suing me did not send the consent judgement on time (which would’ve had my 30 days to answer court expire equaling a judgement by no show…/ no answer. They had written 5000 down and 50/ month … When it was 500 down and 50/ month. Now they sent me the corrected cj papers but I am now unsure .. I have a court date where the court clerk said I would do a consent may 15… And they want the 500 down with me writing them a check earlier than I have funds ( they say they won’t cash it until April 30 when I get paid…) also a third paper states or me to write my banking account, where I work and my supervisor name. Am I required to give that to them? Why can’t they wait until may 15 for the 500 down? If I show up at court after I’ve already signed consent judgement what will it mean? Are they trying to trick me?! Also I called a debt consolidation place and they sai they’d help me do the visa at 168/ month for about 3-4 years and they charge a small fee per month. I feel so confused because all three groups just want my money. Help?! Did I mess up by answering as a denial? Do I wait to sign consent ? I absolutely don’t want to be garnished. I also know its shady because the guy who wanted to date me worked at that credit union so I feel that may have to do with the rush to sue me ( right after I told him we can just be friends – he was cyber stalking me…)
Aj – Credit Unions are just more apt to quickly sue for unpaid debt than national banks. The smaller or more local the credit union, the more this is true.
Any debt relief company you talk to about helping you at this point, is not going to do anything unique for you that you cannot already do, unless it is to settle the debt for a lump sum of money. But this too, you can do for yourself. If you pulled together 70 to 80% of the balance owed quickly, you could probably put this behind you and avoid the judgment. Is that a possibility for you?
As far as the 500 down and the monthly payments after that, If I were in your shoes, I would follow through and participate in the court process. I would be reluctant to sign on to a consent to judgment (letting them dictate the terms right now), when I may be able to get a better payment structure through the court by showing up at the hearings etc.
No, I would not volunteer the information they are asking for.
Well… What should I do – call the attorney and tell them I will not sign until my court date? (May 15) since they say they want the 500 down by April 30.
Do I call them and tell them to redo the consent papers for may 15 when I give them a check for amount down? Do I give them a check at the court? Do I avoid personal checks and only give money orders. If they act like they won’t do this will I get a worse deal at court? Also reminder I have answered a denial so what would I say to judge- that some I the fees are inaccurate. ?
I saw online maybe in your site tht they are supposed to warn you in a letter by the way- well they did not- they called and the papers they sent said I am past due but there was no in between letter which would’ve made me call them sooner ( as u already had tried to work out a plan but they wouldn’t accept it) next thing was a summons.
Either way, let me know if I should contact the place before my court date or just show up and hope I don’t have my wages garnished. ( will they require my details at court too- where I work, bank info, supervisor!? Is that required?! ) is it required to give them a personal check or is t ok to allow them to automatically take out $50/ month. Is it required to do a down payment so large? Is it possible they are still trying to set me up?
Or is it possible if I dot work with them now and wait til court that they won’t work with me then and I will be stuck with a judgement? Is signing a consent of judgement at court my only option beside a judgement of money coming out of my check?
Also: u have 2 other cards I was late on 1 is jcpennies (690) & one is victoria secret (1400) should I try to contact them now that both have gone to a collection agency… And te letters said I have 30 days I dispute? I know my credit will drop – but I am already seeing it has dropped and my income and outgoing barely breaks even- so should I just hope they don’t sue me too or should I call and set up thru debt consolidation with them?
I am on a very tight budget and need to be careful with my funds since I have to pay and keep my mortgage and cars in check. ( I almost lost my house last year due to furloughs etc. that’s why I fell behind elsewhere … I am already a month behind on mortgage. I have exhausted all possibilities and I am going to try to figure this out ( only other option is chapter 13 which I feel is not for me yet if it wasn’t for these 3 cards haunting me i could probably get my head above water ….
Aj – Based on what you have shared – I believe you have a better shot of getting an affordable payment going through the court process, and probably without the 500 upfront payment. If you set up an agreement for payment with the court and stick to that, it is unlikely you would be garnished. The sincerely doubt the judge is going to ask you for where you bank, or your supervisors name. It is not going to be a confrontational thing. It is much like going to court to dispute a traffic ticket – low stress….
If you have an argument about the amount they are suing for, you can certainly bring that up in court. You already used your attorney to file your answer and general denials with the court. You can ask some additional questions of the attorney to prepare yourself with what will happen in court.
As far as your other accounts with a collection agency – the lawsuit is your priority. If you end up with an affordable payment on that, and have some room left in your budget to accumulate money and negotiate payments on the other two, look to accomplish that after you know the outcome of the collection in court.
How is that g.e can take a account with a balance on it and sell it to a 3rd party; then the 3rd party be like “now you owe us” thats pretty much loansharking/enforcing. Encore Capital bought out my meijer g.e account, i was unable to get ahold of someone tonight from walmart they were closed
chris – Virtually all credit card agreements have a clause that states your account and debt can be assigned/transferred/sold. It is completely normal. American Express is the only larger credit card issuer without a history of selling bad debts, but they still use outside collection agencies and attorneys as assignee debt collectors.
I have financialy stressed/extended my self and i am over 180 days past due on two g.e capital fincanced credit cards. g.e capital/fincial refuses to settle the debt with me directly and handed my accounts over to 3rd party debt collector, i sent certified mail to g.e financial twice verifying both accounts and saying i will only settle with them directly not the 3rd party deby collectors. i also told one of the 3rd party debt collector that i will only settle with g.e directly not them and they keep continuing to call me several times a daydays a week starting at 830am, even after telling them repeativly to stop calling 7 days
chris – you have outlined your situation well, but I do not see a question in what you posted. I am left to offer general feedback.
You may want to settle only with GE Capital Finance, but GE has clearly shown you they do not want to settle directly with you. They have opted to use a collection agency instead. That is how this stuff works after a debt is charged off most of the time. If you want to settle you will likely need to do so with the agency. What you may not fully appreciate is that settling with debt collectors is simple and straight forward. Not only that, you can sometimes settle for more of a savings with the collection agency than you may have been able to if settleing with GE Capital directly. Who is the collection agency GE Capital sent your accounts to?
If you have questions or concerns post them in a comment follow up and I can offer more feedback.
Hi Michael, I was checking my credit report and found an inquirey from February of 2012 for American Coradius International. I had some bad debt with BILL ME LATER from 2009. Back in 2009 the balance was $2,271.21. I would like to prevent this from being reported as a collection. I wish to offer to settle with ACI. I have $800.00 that I could offer. Would this be a fair amount to settle? Would calling them be advisable and offering them $800.00? Thanks! Peter.
Peter – Your original Bill Me Later balance could be much higher after 4 years of non payment. It will depend on what your contract with BML stated as treatment of fees, penalties and interest in the event of default. 800.00 may have been close to a realistic settlement target for the original balance, but it may not be a good target to settle with American Coradius Int.
What state do you live in?
Hi Michael, I live in New York State. I am not sure of the current balance with American Coradius Int. Would the best step be to call American Coradius Int. too ask them the balance and ask them for a settlement offer? Thanks so much! Peter
Peter – Calling is a necessary step if you want to settle the debt. Some additional things to consider:
If they are not actively making collection attempts with phone calls and letter, calling will certainly bring your account front and center. I point this out because the 800 you have available to offer as settlement may not be enough. If you can start there and end up at a higher amount that you are confident you can pull together, make the call. Post an update comment with what happens and lets go from there.
Hi Michael, I called American Coradius Int., and was able to confirm that the balance was still $2,271.21. I let them know that I had only $800.00 to settle. They did let me know that they could not take $800.00 as it was too low, but let me know that I could discuss it with a supervisor. The supervisor also said it was too low, but let me know that she could settle for $840.30. I took the offer! After receiving the faxed agreeement, I sent a bank check by overnight mail. They wanted my checking account number; however I did not feel comfortable giving them that information. It was nothing like I feared. they were very proffessional and matter of fact. Thank you so much for your help. I am verry happy that this is settled and now behind me. Peter
Thanks much for posting the update Peter, and congratulations on your debt relief success!
I am pleasantly surprised to hear they were negotiating with you using the older balance, and not an amount that was inflated by late payment penalties, added interest etc.
Some additional takeaways I hope people reading your comment will catch:
1. Calling a debt collector should not be feared and does not have to be confrontational.
2. You do not need to hire someone to get the job done. You can save the fees from hiring someone and often get the same or better result.
I just found out I have two civil judgments for old credit cards…one with Citibank SD and one from Capital One. They date back to 2010. I’d like to get these debts paid. Can I negotiate with them? How many cents on the dollar do they usually take? I don’t even know where to start, but I need to move quickly. These items are holding up a job offer!
Sarah – There is often more to settling judgment debt than knowing the floor amount you can settle for. Mainly because the floor can move from one person, and one creditor to the next. If you need to move quickly, there will be less strategy to it.
I am going to encourage you to call in for a consult: 800-939-8357 ext. 3. The call is free.
If you want to work with me here on the site rather than call in, that’s okay to. But post your answers to the following questions on the page that is already dedicated to settling judgments found here: https://consumerrecoverynetwork.com/question/can-you-settle-credit-card-judgements-like-other-debts-stressed/
What are the judgment amounts today (with the added judgement interest)?
What are the names of the debt collection law firms that sued you?
Were you sued by the original creditor or a debt buyer (who is the plaintiff listed on the suits)?
Are you currently making payments on a home, car, other credit cards?
Those questions are a start. Once I know the answers I will have some feedback, and additional questions.
I am being sued in the state of Georgia for a credit card debt that was bought by Calvary SPV I, LLC, from HSBC, Direct Merchant Bank. The trial is today January 31, 2013. The law firm is Sherwin P. Robin & Associates, P.C.
I do not have resources to pay an attorney at this time, and have not consulted with one. I have read some websites on what to expect, but now I am wondering can I settle the 6,954 which is the original amount, plus 776.23 in interest as of the date of the settlement offer letter they sent on December 10, 2012. Incidentally, that settlement letter was how I first learned that a case has been filed against me. I answered the complaint after confirming with the court that a complaint was filed, although never served to my knowledge. The settlement offer was for $100 dollars per month beginning 1/10/2013 and continuing until the debt is paid off. They also attached a Consent Judgment for me to sign which I did not sign, since I did and do not have the extra funds to pay them.
What might you suggest I do at this juncture, as my clock is ticking.
Sincerely
Ken Alston
Ken – I am seeing and responding to you at 1:30 pm pacific time. I am sure you have already headed off to your hearing. What you do next is going to depend largely on what happened at your hearing today. You are welcome to post an update comment and lets go from there.
Thanks for your reply Michael but I have about an hour before I have to leave. The court is not far from my home.
Ken – If all you can offer is 100.00 a month with a consent/stipulation to judgment, it is what it is. You do not have time to read through all of the comments on this page where I warn about consent to judgment, but you need to know that if you do not follow through with monthly payments they can move quickly to garnish wages, or levy a bank account: https://consumerrecoverynetwork.com/question/can-you-settle-credit-card-judgements-like-other-debts-stressed/
If your answer to the lawsuit Calvary SPV filed contained a good foundation to build a defense from, I would not admit the debt in court. I would tell the judge that you have no way of knowing if the debt is yours, or if the amounts being claimed owed are correct, as Calvary has not provided any proof of either (unless they have of course). If things get off on any kind of wrong foot at the hearing, or go in a direction that concerns you, tell the judge that this is all strange to you and that you would like to continue to another date so that you can consult with an attorney about your rights. Depending on how this shakes out today, I can help you find an attorney to consult with. The type of attorney you need generally offers a free consult. You may learn the attorney is affordable, or that there are areas of legitimate concern regarding Calvary, or your debt, that can be pursued in another way.
Good luck today. Wish we had more time for you to weigh different options and strategies…
So Kenneth…what happened???
Hi,
Due to many unfortunate events, I’ve fallen behind on some credit card payments. My GE Capital Retail Bank/Gap Visa was turned over to 3rd party at 60 days past due. The letter is from advanced call center technologies,LLC? I spoke with them and was still unsure exactly who they were?
I still have tons of cc and bank debt but most cc companies have been more willing to help me. I’m just not sure if I can trust the people I’ve just spoken to…
I would love to try to just settle this in a month or two if I can but I’m uneasy about this 3rd party.
I’d love and would very much appreciate your advise.
Thanks so much
Chris – If your goal is to settle the GE Capital account, but you are only roughly 60 days past due, you will have the best opportunity to settle the GE account, and optimize the savings available, in 3 or so more months. This would mean just before the account would typically be charged off (before 180 days of consecutive non payment).
GE Capital uses several 3rd party collection agencies. If you are uneasy about the 3rd party debt collector contacting you, call GE Capital and verify the name of the company your account was placed with. They will share that info with you.
What is the balance on the account today?
I too like someone else am being sued by Cach LLC. I just found out that someone was trying to serve me a summons. I do not live in that area anymore. I know I have debts from a few years ago. I figured it was settled. My bank account was frozen. My money which was in there was taken I assume by whatever they settled in court. I was living in another state at the time and did not know anything about this till it happened. I am afraid this might happen again. It must be one of those collections on one of those debts from years ago. I am now living in the same state but in a different county that I am being sued. I am currently unemployed and have no financial means in which to hire a debt lawyer. I am being sued in Broward county Florida. I looked up the clerk of courts and found out it was small claims and it is Cach LLC that is trying to sue me. I also found out the court pretrial is not till August . I need your advice and what can I do with no money and no job and I cannot afford a lawyer. Are there free lawyers for someone in my situation?? Thank you
Jean – There may be a low income legal aid office you can connect with nearby. There are also law school clinics at universities to check out. Have you considered chapter 7 bankruptcy for debt relief? It could put an end to any existing judgments and stop this one in its tracks.
Thank you but I still need more answers than you have given me. I provided you quite a bit of information. I am in Marion County Florida and I am being sued in Broward County Florida. Can you refer me to a pro bono lawyer or legal aid office? Do you have a name? Or a phone number? I have heard of several people whom are being sued by this company Cach LLC. I too have been harassed by phone calls I want them to stop. I looked up the information on the Clerk of Courts in Broward County Florida . That is where I found out that it is Cach LLC is the one suing me and the Lawyer that is representing them is Bryan Manno. This is the most information I can find at this time. I am unemployed and financially I am barely making ends meet. I can prove my income and my bills if needed. I need help.
Community legal services of Mid Florida operates out of Ocala. You can reach them at 352-629-6257.
Thank you Michael, I called that number that you gave me in Ocala and all I got was a recording. I punched in the correct number on the recorded message and was put on hold for 7 and 1/2 minutes. Then another recording came in and said they are busy at this time and try again later and then I got disconnected . U tried again and the same thing happens. What do I do now? I cannot get anyone in the phone? That is mid Florida legal aid correct for Marion county I hope. Should I look up the address and go there in person in Ocala? I need to expedite this. I need a Pro Bono lawyer because of my circumstances please help.
Jean – The office address for Community Legal Services of Mid Florida is:
1610 SE 36th Ave.
Ocala, FL 34471
I would go to their office rather than wait to connect with someone on the phone. Unfortunately, low income legal aid offices are nearly always underfunded and overworked. Take any and all relevant documents with you.
Michael, I tried calling that number you gave me and all I get us a recording. I pushed the number for the help I need and was put in hold for 7 and 1/2 minutes then another recording came on saying we’re busy and try again later then I got hung up in and disconnected. I tried again and got the same thing. You cannot get hold of a live person at this number just a recorded message. Are you sure this is the correct number?? Should I look up the address in Ocala and just show up. Then I cannot be ignored! This is frustrating. What is my other alternative? Can you suggest a pro-bono lawyer in the Marion County Florida area. Please I Am unemployed and I need help to solve this before it goes to court. Thank you
Jean – I am not sure if you saw my prior response from earlier today with the address and encouragement to go to the office in person. The office number I posted is the one they have on their web site. I do not think you are being ignored. You are trying to reach an office that provides free legal assistance to those in need who meet low income qualifications. That means they try to help a lot of people. These types of offices are usually underfunded, which means often understaffed, and also under appreciated.
I looked for additional pro bono legal assistance in the area and could not locate another public listing.
Michael, Thank you for the address I am going to go there tomorrow. I am surprised there are no pro-bono lawyers in the area. I thought lawyers had to do some pro bono work and there are not more out there. I find it hard to believe there are not any pro bono lawyers in all of Marion County Florida. I will update you when I get anything accomplished.
i too have gap visa tried to settle it back in feb but i know dont remember the name of the collection agency
michelle – You can call GE Capital and ask them who they currently have your account out with for collection, or who they sold the account to, and go from there.
It has been over 2 years since Comcast has reported me to the credit bureaus, I had written them a letter to pay in full if they took it off my credit and never received a response. They sold my account to several different companies and now SOUTHWEST CREDIT SYSTEMS L.P. has reported me to the credit bureaus…
My question is should I pay Comcast or Southwest credit to get it of my credit report.
I have not call or written Southwest as of yet I am not too sure what should I do…
Please advice
Pay for delete offers do not work most of the time. You can try to get Southwest Credit Systems to agree to payment to drop the negative from your credit, but I would do that on the phone, not just send a letter.
It is difficult to get the agreement to delete in writing, even if you do convince a debt collector verbally.
I moved your comment to this page about the topic, so be sure to read the original reader question and my responses above.
More often than not, just getting your credit to show as a paid or resolved collection account is all that you need to improve your credit going forward.
Hey there, I wanted to thank this site for your response to my dilemma. I took your advice and retained an attorney. Your advice was great. We didn’t even have an attorney close and is working with us from a distance. Turns out these loan buying companies have been doing all sorts of things illegal! They even accessed my credit report without consent 15 times! Thank you again and to the people reading: Listen and Learn
Brian.. I am being sued by the same company.. which attorney firm did you retain.. how helpful/expensive were they?