I'll try to make a long story short. I owe a large amount to CitiBank, and several smaller amounts to Capital One and Chase. I got a letter in the mail yesterday from Citibank saying they would settle with me for around $6k. I decided to try doing this, and to look into settling with my other card companies, as well. I started with Chase. I called the number on a letter they had sent and they agreed to settle with me. They told me, however, that they would send me documentation of this after the first payment was received, not before. I am wondering if this is routine practice? They wanted to do automatic withdraws, but I told them no, and they agreed I could send using Moneygram, to receive code 1164? I am just wondering if they are lying to me.. but they refuse to send me any documentation before receiving payment, so I am unsure of what I should do. I agreed to the settlement on the phone but now I am worried that they are lying I am supposed to talk to someone at CitiBank next Monday about settling with them. I am unsure if they will say the same thing, but I am worried they will and unsure of what to do. CitiBank did tell me already that they will ONLY do automatic withdraws. I agreed to do it and plan to use a checking account I used prior to my divorce, which no money is kept in. I would really like some input on this situation. I cannot afford for this money to just be lost and still have to file bankruptcy in the end. What are my rights in this situation? Thanks so much, Ashley
I wouldn't make any payments until an agreement is in writing first. You don't want to be forced to play "he said, she said" down the road. And it's certainly not unreasonable to ask for this in advance.
A verbal phone agreement expires the minute the conversation is over! Collectors will say or do anything to get a payment. Get everything in WRITING with a signature by a manager or supervisor of the CA - on their letterhead. Do this before giving them a dime. That is for your own legal protection. I could post all day about CA abuse and verbal agreement violations. Also, you were correct not to give them any of your account numbers.
