Amex has sent correspondence that they were turning me over for collections to, first, Nationwide, then, GCServices, so I don't need to verify that I am negotiating settlement with the right agency. I have never contested the amount I owe. This morning I was "offered" 65% AFTER removal of penalty interest and fees. That's all I've been asking for (interest removal). The 65% was a "gift", although I realize some on this board may disagree with me on that. I was asked to fax a hardship letter indicating why I got behind in payments. (I think it doesn't really matter to them--maybe it was my gambling addiction--LOLOL!!) I stated in my fax that if the offer is accepted, I expect from them 1) a letter of agreement stating the terms and amount of settlement 2) my account status updated in a timely manner on my credit reporting history. Does that pretty much cover it--without continuing to demand additional things that might jeopardize the settlement?
YOu can hold off for a lot less IMO. I believe you could get it down to 40 percent of the original debt.
Hmmm IME I either could pay it all off and then they would give me a new card, if I did a deal with just about 20 percent and of course will be black marked forever... So they are unforgiving that way for sure.(Debt was 9K) Of course they had ben trying to collect for a long time and it kept getting lower every time they sent me a letter. (I was still in SOL by several years as well) I think in these times any creditor will settle for a lot less than they used to . Oh and I did not pay it to a third party collector but DIRECTLY to AMEX. Woofer
Hedwig, I thought so too. This may be good news for other Amex card holders. Woofer, I have received lots of good advice and a ton of suggestions from posts I've read. However, I wasn't contending the amount, merely my ability to repay. But certainly not willing to wait for a summons to be delivered to my door. In that respect, I'm "buying" myself some peace of mind by not playing a guessing game, wondering when the other shoe will drop. They actually are getting 50% if you don't knock off the interest & fees that had also accumulated. Deleting those charges makes it closer to the 65%. Anyone reading my past postings knows my debt was $23,900 so you can do the math. (Of course I'll have to claim that as income whenever they serve me the 1099C--My daughter didn't get hers till 5 years had passed.)
When was the last time you paid on this? What do your credit reports say? I do know or at least I think I know that a JDB can ONLY can report the principal amount NOT any interest or penalties. at least according to what I read and there is a 36 month rule. I think you should gamble and see what happens as YOU CAN always settle if push comes to shove. Of course this is just my opinion. I also KNOW for a fact that AMEX never did do a 1099C on an account ,IME, and now if htey tried it would be out of SOL. Anyway we all have to do what we think is best, but if I had 10K in my hand I would not be settling, as I would do a wait and see. Good luck whatever you decide. Here is something that may be of interest, tried to do a copy and paste but could not.Wonder why? Anyway...Can Debt Buyer Company Issue 1099C for Old Debt I am not advocating that site,know nothing about it, and just found it a little while ago, but just thought there was some interesting reading on 1099C's. Woofer
"Here is something that may be of interest... just found it a little while ago, but just thought there was some interesting reading on 1099C's." Woofer, you're some crazy dude if that's your idea of recreational reading! But without you "crazy dudes" there'd be no reason for this Credit For Dummies website!!! I'll have to slog through it to determine if it affects my daughter's situation. Thanks.
I have their letter in hand with terms. They are allowing me to split the settlement--unheard of, I believe--into a 24hr/30day/45day payoff. Working with Dave Sparks who is the Good Guy at GCServices. Since this is a settlement, I am not eligible for another Amex card (not that I need or want one, other than for the boost it might be to my credit score). Also is it true that since this has been "settled" no other collection agency can come around in 5-7-10 years with their hand out for the balance?
No not true whatsoever. YOU settled with one, another JDB can come in and go after you for the balance unless you get it all in writing that this is a done deal.. Don't know what ypu mena of *unheard split payment in three* but this is par for the course... THEY WANT YOUR MONEY AND WILL GET AND TAKE IT ANY WAY THEY CAN. Now if youdo have a big chunk and want to give it to them then you can wheel and deal and get a cheaper settlement with ONE payoff. Seems though that you want to hand over the whole amount htey are asking for as you think it is such a deal.. Remember also they will furnish a 1099C that you will be responsible for most likely.Since your first post you have been afraid of getting a summons... So why don't youget a lawyer to negotiate a GOOD settlement for you and save yourself a lot of trouble as this outfit sees weakness and are going to nail you. Of course this is JMO but it is an informed and experienced one. No matter what I write to you you are going to do what you want and hand over the money but at least I warned you to get a lawyer Woofer (who prefers to do it her way and not with a lawyer and so far so good but would have a lawyer if she felt she needed one as she is smart like that ; ))
Woofer, yes, they told me they would provide in writing that the debt was "settled" and you can be sure that as soon as I've paid the last payment I'll ask for it. From what I understand, "settlement" is just that. Otherwise it's a payment plan, strung out monthly (for years, in my case) and makes sense to me that they would need to make that a higher balance, because the longer a debt is strung out, the more likely it is another "crisis" may occur (i.e., second thoughts, BK, etc.) and the agency will lose its leverage once again. I consulted with 2 attorneys. The first wanted $6000 to "settle" a BK for full amount...no interest...how generous...inflating my $23,000 debt to $30,000!!! (I think that's when I found this board.) The second would do a BK for "only" $2500 as a family "friend" and "try" to get me a lower amt. Offered a nego for $600 fee, but if I didn't like what they came back with I could walk. Fast forward in my mind...collections sees me hiring an atty to get a low settlement figure, I don't like what she comes back with, so *I* walk away, then have ZERO negotiating power with them when I want something lower because they know I've pulled out all the stops first. I appreciate your concern for me and believe you are emotionally and truthfully invested. Perhaps I caved too soon, but for emotional reasons, this was as close to the edge as I wanted to walk. The best offer I had prior to this was to settle at $16,000. It IS a done deal, and I don't feel I got a bad shake with a 50% deal considering it IS Amex, notorious, from all info I could find, for being hard asses. (parden the French) Without this forum I would probably have paid the second lawyer to proceed with a BK, but you all gave me the kihonas to at least wait it out this few months longer, and I'm grateful for that input...because I'm NOT smart like that ;-)
Well you never mentioned bankruptcy and I was not telling you to go to a bankruptcy lawyer. A GOOD lawyer will write a letter do a negotiating of settlement and will charge you probably 1K. A friend of mine got a JUDGEMENT against her, I could not defend her of course and she has always been a nervous one so we went to a lawyer and I told the lawyer what we needed and wanted him to negotiate this judgement... HE was willing... (judgement was for 50K) and we got them to accept 7500, and settled in full with prejudice) and everythign neatly signed sealed and delivered and this was a judgement.they had her! Yours well it never even went to court. I do believe when you cannot negotiate for yourself a good lawyer is well worth the money. ANyway you got the job done feel good about it so it is a done deal. Woofer
A bk would wipe out the debt,not settle it.Unless their doing a chap 13.The 6,000 dollar offer for him to settle.My response would have been unprintable.
Really.... SOme lawyers are not great and very greedy... I have met a few, some really do pretty good by you and I send business their way. I don't know nay bankruptcy lawyers as have no experience in such but hiring a good lawyer for anything I feel is money well spent. There are some people though that just will not listen and you offer advice such as being able to do let us say a Homestead on their own and instead they pay a lawyer 2K to do it where you can do it for $50 buck max! Anyway we all have to be informed consumers and patients. AND speaking of illness and doctors, Things are getting bad here with the swine flu... Schools closing people worried... I don't think healthy people need to worry,but young and old and pregnant well I would worry as I do believe things are worse than any are letting on. I also have just stopped an airplane trip for hubby as I don't want the flight delayed because someone sneezed or he sneezes and ends up in a hospital 2 thousand miles away so we are *grounded* for now . This is what just happened at an airport here today! : ( Woofer
