Okay, short and sweet: I finally worked out terms with all but one of my credit card companies. One is being paid out on an installment plan. Another is giving me a VERY low interest rate for a year, so maybe I can catch up a bit. One won't budge. They want to keep the rate at 29.99% and continue to charge me an over-the-limit fee each month. I can't afford this. What kind of a "hardship" program is 29.99%?? I was also told that "we no longer send accounts to collections. We send them straight to our attorney." Any suggestions on dealing with these BASTARDS? If I continue to hold firm and don't pay, what can I probably expect to happen? Thanks.
Eventually they'll charge it off. If the damage has been done already, you might offer a cash settlement for 50%.
Personally, I'd tell them to send it to their attorney and be d***ed then. That attorney is then a 3rd party collector just like collection agencies are and as such they are subject to exactly the same rules as a collection agency. Most of them seem to think that's not the case, but if you read FDCPA, you soon find out that it is. I handle their lawyers exactly as I do the collection agencies. One cannot usually "bluff" them in any way because they do know the laws and are much more familiar with "funny" tactics than are collection agencies. But most lawyers end up making dumb mistakes too. All you have to do is catch them in it and they can kiss the account ADIOS.
Bill: I see what you mean about the lawyer becoming a collecting entity, subject to the rules of the FDCPA. The thing is, though, I want to avoid a chargeoff. I've never had one and I don't want to start now. What I REALLY want to avoid is a judgment/garnishment/lawsuit, etc.... Frankly, what I want is to simply get on fair terms with them. That may sound wimpy, but I don't want to try any tricks or whatever. I just want my former good credit back. I just cannot afford the payments at their 29.99% interest rate.
Can't be done. My formerly excellent credit got hosed a couple of years ago. Believe me, if I could get a low-rate, fixed card, or a signature loan, etc..., I would go that route and tell them to shove it. Alas, those were the days.... These idiots won't listen to reason. They would rather keep sticking it to me and breaking it off than to offer ANY assistance. Just for the record, their "Customer Disservice" reps are the most stupid nose-pickers on the face of the earth.
I can well understand that you don't want to do any tricks, don't want to get sued, don't want to get any judgements, don't want any garnishments, just as soon take the charge off and let it go at that............................................????for the next 7 years???????????? Is that what you want? Because if you don't do something about it then all of the things you don't want are likely to happen. You don't pay them and don't pull no tricks as you call it, then you can about count on getting sued, garnished and all that mess and live with the bad credit for the next 7 years. You pay them and you live with the bad mark that says paid collection account for the next 7 years. You play the game my way and you get rid of the debt and you don't have any bad marks on your credit either. You got at least a 98% chance of good credit my way. You got no chance at all if you don't do something. Just think about it.
There are several options as I see it... Not sure if this is a credit card, line of credit, etc....anyhow, here is what I would consider. How much is the minimum payment? If it is quasi-reasonable, could you realistically pay it for a short period of time? If so, you may want to negotiate w/ the company in terms of "If I demonstrate to you that I am fully willing to honor this by payments on time for 6 months, could you possibly work w/ me here by lowering the interest rate/eliminating overlimits, etc.?" Of course the flaw to this option is that they may say hey, if you can pay this then why not just wrangle you w/ this indefinitely. Have you been a customer for any length of time? Could you use this to your benefit, vis a vie "Thank you for your services since 1997..." Or, did you once have a good record w/ them? "If you review my account, you can see prior to my hardship that my payments were made on time for the five years preceding..." Also, if this account is being managed for a creditor by another company (for example, my Ikea account is handled by GE Capital) you may want to try the creditor if the credit company isn't budging. Finally, have you tried Planetfeedback for this company/writing the CEO? If not, I would give that serious thought. I had gotten nowhere fast w/ Providian, who was charging me a ridiculous interest rate for no good reason. Customer service reps couldn't do anything, and didn't want to help. Wrote to the CEO via planet feedback-interest rate dropped nearly 10%, upgraded to gold, waived annual fee....you get the picture.
It seems to me you are asking if anyone knows how to turn back the clock and make this all magically go away. If I could do that, I would have done it for myself long ago, and I wouldn't be here studying on this board. I can't, so here I am, resigned to dealing with reality (I really hate that). I understand your frustration. I, too, am a reluctant warrior. I teach my daughter to avoid conflict if at all possible. But, I've also taught her that when the other person simply won't let you avoid conflict, then conflict it is, and she must confront the situation as it is, not as she wishes it was. I have had to make that same uncomfortable choice. Since reason has failed to work, I have had to get unreasonable. I've had some success (so far 36 deletions from my wife's and my CR's, with more work to be done) and will post more when I have a better feel for what has worked for me and what hasn't. For the record, I am not using Bill's service---yet. I suspect I will, though, for a few of those last stubborn issues. Many have criticized him for "trying to sell something", but not me. I say "What a Country!" Struggler, Listen to what Bill is saying. Use his methods, or LizardKing's, or Ender's (run searches and read everything by all three of these people) or some combination of your own devising. Whatever else you do, Tilt your Weapon and Charge the Dragon. Or, go back and cower in your castle (for seven years). The choice is yours and there's no middle ground.
What state is this creditor incorporated in? Some states have a 24.99% cap on interest. Some states have a protection that if you do not "use" the card from the time the new interest rate is to take effect you can pay the balance at the old rate. Have you used the card since the rate was jacked up? I think to get the full benefit you may have had to close the account by the jack up date, not sure, but I recall reading a Kiplingers journal article on this. I do know if you have used the credit line for new purchases since the jack up rate took effect you have waived these protections. Many states still have usury laws. A little research might uncover some kind of protection for the abuse you are suffering under.
One more thing... I had a cc try to jack up an interest rate on me. The very first thing I did was complain via web site to the Consumer Protection Division of my state and ALSO the Banking and Commerce regulators of the state in which the cc company was incorporated. The B & C regulator really got involved and was pi&&ed that this bank was trying to do such a thing. As it turned out, this cc co. was in violation, anyway, of furnishing errors on my CR so I slam dunked them with that leverage. I believe, though, that just having the B & C regulator of their state down their neck would have taken care of the problem but I'm not sure as it didn't have to play out that way afterall. It can't hurt and might help. I agree with others who say use the tactics of Bill Bauer, Lizardking, etc. if you can't get it lowered or payment plan worked out. Taking the punishment of 29.99%interest AND/OR 7 years of bad credit..... Not me!!! I'd fight with all my claws out!
(LOL)(LOL)(LOL) YEAH Mist! Only way to go! Like Scissorhands in the movies! Cut 'em up bad! (LOL)(LOL)(LOL)
