I am trying to help a friend work out an account with US Bank Here is the situation: 7K is owed and is between 150 and 180 days past due. The account is nearly ready to charge-off. US Bank offered a payment plan - $144 / month, 7% interest and 60 month repayment terms. This looks like its in the collection department. They will only accept payments by phone, not on the internet and not by mail. They have not been clear on the credit reporting other than they will continue to report the account as 120 days + past due. They might "reage" the account after one year, whatever that means. They refuse to put all of this in writing until AFTER they receive the first six scheduled payments by phone. Any advice in negotiating with them here? My friend would like to work this account out, but not at the expense of continued late payments. After this month this becomes a charge-off and no more late payments. Appreciate any input.
My first question is a "dumb" one, are you sure you are delaing with US Bank? This sounds a bit odd, that a bank will not put anything in writing...and not accept payments other than via phone(?). It sounds like they are trying to charge extra processing fees. It is recommended to try and stop the account from hitting the "Charged Off" status, by making payments to prevent it slipping into the 180+ days status. If it goes to "CO", then it falls into a more serious category for credit reporting, and possibly adds a "Collection Account" to their credit report. US Bank does need to clarify the consequences of entering into this payment agreement, they are required to do this. It sounds like a fair deal, but they must disclose the reporting aspects, and any other details such as prepayment clauses, how interest is figured, etc.
US Bank Its definately the collection department at the bank. When they first refused to put this in writing I then called the COO of the bank. Its them, not a CA. They said its how they setup their computer system. I really didn't buy it because it seems slimy. It appears to be their offer though.
