As of six months ago my credit card account went into charged off status. Since then, I received a letter from a credit buyer investment company that I didn't even know existed. I shredded that letter long ago and today I read the validation section of the fair credit law and became a little scared of what might happen to me. For the past few months, the CA has been trying to get me to give them my personal information to qualify me for some sort of "hardship" program. I refuse to give out any personal information over the phone for an unlisted number that continues to call me. The CA tries to probe me for information every time they call and instinctively I have decided that it is in my best personal interest to begin to make a paper trail of all communication with this company. I returned to college last Feb. and that is the reason why I couldn't pay the credit card any longer. My disposable income is around $800 each month and most of it is consumed by tuition, rent, and bills. Needless to say, that I do not refuse to pay this debt, I just have no mean by which to pay. I need to know whether it is best for me to send a validation letter to the CA or a payment by deletion letter for a low amount. I owe around 10,000 to one account and would like to settle this because I have always tried to be careful with my credit. The absolute most I could pay on this account is around 2,000. I feel that the CA will refuse such a settlement offer and perhaps try and sue me. Since, I will be finishing my AA and transferring to a major four year university in about a year I do not want my wages to be garnished. I do not wish to stir the hornets nest with legal documentation and have them sue me. I am not sure if I have enough time in my busy schedule to become a credit law pro, and to be quite frank, I'm scared of what might happen to my life if a law suit happens. I just want to get this ugly situation behind me and focus on school... Any advice is appreciated.
Not to scare you further, but you may have "looked a gift horse in the mouth". There are "hardship programs" out there with the CC companies. They do not advertise widely that they have them. But, these programs are a way of cutting out the "credit counselors", and reducing costs and losses. Looking at the dates, the CC company may have been trying to avoid letting your account go into a "Charge Off" status, and saving them a loss in their "assets". My advice, talk to the CC company directly, be honest about your situation, and try to work out an agreement under a "hardship" program. The program is a bit complicated, you make payments, but they are escrowed and accrue towards the amount owed. The interest stops accumulating (this varies), but it generally works in your favor. To make this work, you may need to try for a student loan to make a sizeable payment on this account. You will be only "transferring debt", but you buy time, and most likely a much better interest rate.
The OC did offer me a hardship program at some point; however, as of July of 2007 my account with the OC was charged off. Since then, Credit Recoveries Corp. has been trying to gain my personal information over the phone in order to qualify me for a hardship program. I feel that the reason why they are doing this is because they lack significant information regarding me in their media and wish to grasp my financial situation. I believe my debt buyer was Credit Max Corp. The OC is out of the picture or at least it seems that way for now.
