We had an American Express account with a total balance of roughly $30K. We are self employed and our income dropped substantially around the first of the year. It has yet to recover. In March our account was "turned over" to NCO Collection Agency. At that point it was not being reported as a "charge off". In April, we became close to 120 days past due. A gentleman at NCO (US) who is in charge of our account made us aware of several payment options. The most favorable option that he offered was us paying $3K to keep the account from going 120 days. He claimed that if it went 120 days it would be reported as a charge off. This was not a financially viable option for us. The next day I get a call from the NCO India office offering me a much better deal. Pay $1100 a month for 3 consecutive months and they would report my account as current, first 6 months interest free and next 6 at 6.6% APR. This was a special program offered by AmEx called "extreme hardship". I recorded the conversation and called back the fellow that was here in the states. He claimed that we were not eligible for that program and wouldn't budge from his offer. I called the India office back and explained that the US office said we were not eligible. They assured me I was, so I accepted and gave him permission to run a total of three checks over the period of the next few months for $1100 each. All of the chacks cleared our bank. My wife had applied for a job last month and we just found out today that due to her credit status (this particular account still being reported as late) that she will not get the job unless she can provide a letter indicating her status as "current". I phoned NCO (US) to ask if they were reporting us as current, they said no and didn't care what deal India had offered. Suggestions on how to resolve this would be appreciated. Thanks.
Write Michael Barrist at NCO directly and threaten to sue. They will turn the account back over and delete themselves from your wife's reports. Takes about a week . . .
