I apologize for starting a new thread on this, but I need to make a decision on this today and I was hoping for some advice. You can read the long story about my mini-saga with beneficial on this thread: http://consumers.creditnet.com/Disc...ficial-hsbc-settlementlegal-action-65341.html But briefly the issue is this... I'm at least 150 days behind on about $3700. Apparently my case has been given to Beneficial's attorneys about 3 or 4 days ago. I don't have a great credit report, but I have no judgements and I definitely do not want one. They will not settle for less than 85% of the balance and I just can't afford that right now, or in the next month or two. I sent a fax to Beneficial yesterday agreeing to pay $1100... half now and half in 30 days, then go back to making monthly payments. In return for that I asked that they stop legal action, lower my interest rate, and remove their account from my credit report. They flat out refused to lower my interest rate or remove their account from my credit report. They also asked for slightly higher monthly payments. I can deal with all that... I'd rather not, but I can deal. They did agree to stop legal action, but only if I pay the full $1100 today. Unfortunately, and here is my big problem, they absolutely will not sign anything to that effect. I spoke with a supervisor and she 'gave me her word' that they would stop the legal action, but she will not sign anything. Like I said, my priority here is getting that stopped and I'll pay the $1100 to do it, but I'm a bit wary about trusting them. Should I go ahead and do it and hope for the best? Is there any other way to protect myself here? I've only got a few hours to make a decision. Thanks much, Brett
If it's a local office, take in the payment with your terms attached thereto. If it's not feasible to do that, make the payment by "credit" card so that in the event they breach, you can charge back the amount. You would like to avoid a R-9 if possible however, Beneficial is owned by HSBC which means that they won't sue. They will sell the debt and you could end up with two additional tradelines thereafter (one from the purchaser and one from any collection entity collecting on their behalf), thus, the reason to pay this even if not driven from a credit score perspective.
Thanks for the reply apex. Unfortunately it's not a local office, so I can't just go in. Are you certain that Beneficial won't sue? Based on my conversations with them they're either really good bluffers, or they are about to sue. The have told me that they transfered my file to their lawyer, and gave me a contact name and number for a law firm in another city in my state. I do owe the money, and I would like to be done with this, so I'm certainly not against paying, but I just want to avoid a law suit and do as little damage to my CR as possible. Thanks again, Brett
I would hate to bet that they wouldn't sue and especially since they have turned it over to a law office.
I would bet that they won't institute a civil action insofar as it's in contravention to their business model. I suppose it would be contingent upon the amount owed, the jurisdiction, etc. etc., however, the sell 20k charge-off's the very next month after they report R-9's. In any event, pay it if at all possible so that you can avoid any potential sale (or suit albeit unlikely in my opinion) and the additional tradelines that will come thereafter.
I suspect that you may be right, apex. I had a letter from their 'attorneys' in my mailbox when I got home from work yesterday, and it really just looks like a standard collections letter, rather than one from someone who's about to take me to court. In any case, I did make a payment yesterday and agree to monthly payments, so I will avoid the R-9 and everything else. I really would have preferred to settle this for a fraction of the balance, but in the long run it's not an increadibly high balance and it'll be better on my credit report without the settlement. Thanks again, Brett
HSBC can and has been removed from credit reports, particularly after an account has been settled/paid . . .
