I'm preparing my validation letters. All I have are PO Box address from the CAs, do I just send it there?
Here we go again. Got a letter from Capital One today. CC balance is approximately 2900.00 Letter reads: If you do not contact us within 30 days from date of this letter to make voluntary arrangements to pay this debt, we will immediately commence legal proceedings without further notice. Should this become necessary you may be responsible for additional legal costs incurred during litigation and we will use the necessary measures to enforce any judgement obtained. We would prefer to resolve this matter without litigation. We urge you to exercise priority in dealing with this outstanding debt as the notation of a judgement on your credit report may seriously obtain your ability to obtain credit in the furture. Last line in the letter: Please remember that we want to work with you to rectify this account. _____________________________________________ If this is true then why won't they work with my CCCS counselor? We are sending them a payment each month, but this guy refuses to work with me. He wants 200.00 per month. I can not afford this. I am a single divorced mother who lost her job. I recently got a new job, but only make low 30s. I have rent to pay, car payment, and other outstanding debts I'm paying for. Why are they being so stubborn. I'm trying. I sent out the validation letter today, what course of action do I take now. I'm not disputing the debt but I can't get blood out of a turnip. I just don't have it. If he continues I will have no choice but to declare bankruptcy and I really don't want to do this. Does anyone have any advice on this?
Hi I.F. As long as you keep making small payments it will keep the CAs coming back. I was in a similiar situation 4 years ago. After meeting with CCCS and them suggesting I file BK I ended up researching BK at the library. As a single parent I had no assets and was at the time unemployed. I simply did not have a lot of choices. One of books suggested stop paying any unsecured debt and not filing BK. In the past 3 years I did end up getting sued by one company (out of 4) and ended up settling for 20% of the original debt. They are also removing their account from my credit report. If you file BK it is more cut and dried but you also will have the BK on your credit report. Only you can make the choice, but I am pretty happy with how things have worked for me. Remember your child and family comes first.
Just a P.S. For anyone who has to do what I did be sure to put what ever you would have paid away so at some point you can settle the debt for partial payment of the original amount.
But if I do that how do i go about cleaning up my credit. Currently my score is so low i can't even move into a less expensive apartment. If I do what you've suggested aren't I then stuck with this stuff on my report for 7 years? Currently through CCCS I am paying almost 500.00 per month in a debt payment.
I think you might be missing the point of the processes that are laid out here (validate, dispute, etc.). The point of much of what is posted here is to provide you with an upper-hand when dealing with creditors. These people zero in on people that they perceive they can intimidate. Once you start standing up to them, many times (according to the many posts I've read here) they go away. And, of course, you very likely will pay something to them, but hopefully it can be settled for a much reduced sum AND deleting it from your CR should always be a condition of paying. You have sent out your validation letters. Coincidentally a letter crossed in the mail. Once they receive your letter communications should cease (for awhile). Or, if you are fortunate, they will not. The ultimate you are hoping for is violations for which you can sue (or threaten to sue). You have made a good faith effort to make good on your debt. They, however, are not acting in good faith. Now, I am a huge proponent of paying what you owe, but at some point you have to acknowledge that these people are going to hound you until they take everything from you -- your money, your health, your sanity, etc. So you now have to say F'em and take care of yourself. Your debt may seem huge to you, but as I recall, each individual debt is not all that much (correct me if I'm wrong) and chances are very good that they are not going to spend a lot of time on you once you become a bigger pain in their butt than they have become to you. They are only mercenaries, you are fighting for your livelihood -- at the end of the day, who do you think will fight harder? (Hint: Machiavelli says that it is you!)
Merlin my debt are as follows: Amex: 4200.00 (I think they add about 500.00 per month on this one considering it started out at 3500.00 Amex: 2200.00 Capital One: 1800.00 (again much of this is extra fees) They sent this to an outside collection agency. Capital One: 2900.00 (this is being dealt with by their inside collection department) Even if they want to settle they all want it upfront. I simply don't have it to pay. The one Capital One account that they just sent me a letter on offered me a 1400.00 settlement. If I would have had it I would have paid it. Now they want to place a judgement on me? They were willing to cut the debt in half but they won't take a 62.00 a month payment vs a 200.00 a month payment.
You're going to be fine. Just keep posting your progress. There are so many great people willing to share their knowledge. Each step of the way they will help to guide you in the right direction. You're going to make yourself crazy worrying about what could happen. Take it one step at a time and deal with what is right in front of you. And what is currently in front of you are your validation letters. You now have breathing room -- BY LAW. Once your green cards come back, post again if you need help on next steps. Remember, if you can catch them on violations, settlement may end up to be a quid pro quo (I won't sue you for $1000 if you drop this and remove it from my CR). And I am guessing that there are many who have negotiated settlements that didn't require a lump sum up front. You're a lean, mean, credit-eating machine! Go get 'em! (Okay, so that's my dorky cheerleading years coming through! You get the point.)
Again if you are paying them anything or taking their calls they will continue to come after you and continue to add huge fees. If you stop paying them they will, after a time, move on. 6-12 months perhaps? You could put the $500 a month away and then at about 24 months pay them all off for 40-50% of original. The older it gets the less they will settle for. Remember if you do this there is a chance (30%?) they will sue you. If they do you must answer their complaint. If they know you are a single parent and have no assets they will begin to understand they have little chance of collecting. Even after they file they will usual settle. It will cost them quite a bit to litigate it especially if you have counterclaims. It will mess up your credit for a while just like BK. I would be sure to keep an open store card and a secured visa if possible. Also, if you do this you should get a PO Box and an unlisted phone. I would also check out the credit laws for your state. Again BK is one option, but this worked very well for me.
P.S. The CA that is willing to settle may have bought your account for $200 or $300. They know they aren't going to sue you over $1800. At $600 they will likely make 100% profit on your account.
It might be worth your time to do a search on Capital One (Cap 1, Capital 1, etc.). I have read a whole bunch of threads about them and if nothing else, you'll realize you're not alone with them. Possibly you will find someone who has been in your same situation.
L_fabulous, until you make the mental shift from "Oh no, I'm in trouble" to "Yeah, I've got a legal dispute, but I'm going to prevail," you will remain afraid, tearful, and hopeless. The good news is that the second mindset is absolutely true! You do have a legal dispute on your hands (i.e., they want their money, and you don't have it to send, plain and simple), but woop-dee-do -- you've not even begun to exercise your rights as delineated by FDCPA and FCRA. Do not be afraid. Plunge forward. Read the "INTRO" threads at the top of this board -- in fact, make that your primary task for the next 48 to 72 hours. Learn all you can, and I think you'll feel increasingly empowered. Remember that I'm not an attorney, so heed my advice only at your own peril. (I'm protecting myself, LOL.) That said... 1) Send Cease & Desist Letters to all third-party collectors. Let them know that you no longer wish to communicate with them EXCEPT BY LETTER. (There is a version of the C&D that prohibits ALL communication, however that tends to tip the other side into more serious action in some cases. In any event, it's ok for you to know what they're up to BY LETTER. Moreover, third-party CAs often "hang themselves" by letter anyway, so you want the paper trail. Your object here is to get them to stop telephoning you (or to not take that step if they haven't started with the nuisance calls). 2) I would also send a Cease & Desist Letter to the "in-house" collection agency as well. I realize the purists will object, but do it anyway. 3) A few days later send the initial Validation Letter (see this board's Letter Library) to the collection agencies. Since you are questioning whether they can legally substantiate the debt any longer, you should stop making payments as well. (Again, I'm no lawyer; follow my anonymous advice at your own peril; etc.) 4) Continue to read this board. Adopt a litigious mindset. Go after them. Be as aggressive with them as they have been with you. Doc
I sent the validation letters yesterday certified with return receipt. I will begin working on the Cease and Desist letter today. Thank you all for your help. This has been a tough road, but you are all making it bearable. Doc your documentation has been extremely helpful.
Today's news... got an email from my DMP counselor. After getting the scare letter and freaking out I had asked her if she talked to him. His reply is they will take the 150.00 per month rather than the 62.00 from the dmp agency. My reply is I want in writing that the account is now at 0% interest and no more penalties will be tacked on. I also want in writing that this is their agreement to me in return they will stop the collection process. The debt is for less than 2500.00. Should i ask for anything else? Amex won't talking to me regarding my Amex accounts. DMP says they aren't rejecting the payments and to not reject and not apply to the account is illegal..anyone know anything on that? I'm also wondering why Cap 1 sent one of my accounts to another agency and kept one in their internal collections department. Any ideas? Ok so here is the Status First USA reaged the account and is willing to work with my dmp program. Oh 6500.00 at 11% interest. This was ex husbands account that I had to take over. Second Mortgage Settlement - is willing to work with my dmp program and is applying payments. Owe about 5,000 at 0% interest. 1st Cap One card is in their internal collection agency and now wants me to increase my 62.00 pay to 150.00. In return I want no accrual of more interest or late fees or penalties. Owe less than 2500.00. 2nd Cap One is still in external collection agency haven't heard from them sent validation letter. I owe 1700.00 on this one at least that is what I owed before they sent it to the CA. They state they won't work with DMP but will apply payments. DMP is sending them a payment of 55.00 per month. Account still accruing fees and interest. 1st Amex - Owe 2000.00 because of monthly fees they are taking on. It's with Nationwide Credit CA. Sent Validation letter. They state they won't work with DMP because it's a business account. DMP is sending a payment of 50.00 per month. Account still accruing fees and interest. 2nd Amex - Owe over 4000.00 because of monthly fees they are taking on. It's with CA now. Sent Validation letter. They state they won't work with DMP because it's a business account. DMP is sending a payment of 84.00 per month. Account still accruing fees and interest. I know some of you said don't pay, but I'm afraid to not pay them. I guess part of me thinks if I continue to pay on a regular basis if they take me to court the judge will see I've been trying. Is this silly reasoning on my part?
