if it's mbna, they will typically work somehting out with you. i have an mbna account that i didn't make payments on for a year. They kept calling and sending letters. I finally got on the phone with the guy and he worked out a plan for 1% APR for the duration of the payments. After 1 year, i am now down to a much lower balance, and i think it helped my credit score. tell them that you can only make $50 a month payments and want the lowest possible percentage. they just want to recover as much as possible.
Re: Re: series of events The initial reaction that you had is what they *WANTED* you to go through... There is a reason why it is illegal for a CA to threaten legal action falsely. It is essentially personal terrorism. It is a threat which is designed to intimidate the consumer to the point of breaking, just like the 'interrogation' techniques which the few soldiers in the Iraqi prisons tried to use, unfortunately for them, they decided to take pictures of the 'fun' that they were having, and got caught. This is another reason you want to ask for them to show you proof of the amount that they are claiming, and how that amount is legal. A lot of CAs will charge 'interest', 'collection', and 'legal' fees, even if they aren't allowed by the contract, as long as they think that the consumer will let them get away with it, if they can pad the balance with an even nicer figure for them, that's all well and good, they don't care. If this does end up going to a hearing, you want to be able to tear apart the amount that they are asking for any way that you can. But you want to take it one step at a time. Take deep breaths, and try to remain calm. There is still time, because even if they do try to bring legal action, if its at the magistrates level, it could be as long as three-four weeks from the time that they file to the time that the hearing is, and that's as long as they don't try to delay the hearing, or the magistrate doesn't need to delay the hearing.
Re: Re: series of events with them wanting the exact amount they are asking for by september 30th. which is $9,821, i do have 2,800 to put towards that. that leaves me with $7,021 still to come up with. would they take that 2,800 in good "faith" and then set up a payment plan? or will they still file for a judgement against me? i am going to try and get a loan from my bank for 5,000 which then would leave me with 2,021 left to come up with! but i highly doubt the bank will give me the loan. This is my only debt, all others were paid off on time.
Re: Re: series of events Don't tell them you have $2800 or they will want it all. Just say you want to set up a payment agreement in exchange for them not filing suit against you. Offer them say $1000 as good faith, and then something comfortable you can afford per month. You can then use the remaining $1800 to begin making monthly payments. Maybe get a 2nd job to help pay it off faster. Remember your position with them should always be that you will gladly pay them off if they give you time, HOWEVER if they sue you and get a judgment, you will declare Bankruptcy and then they get nothing
