I posted not long ago regarding my situation. I'm 22,000 in debt. 2 Amex Business Cards 2 Capital One Cards, one being Business 1 First Usa Card (Ex Husbands I took on the debt) 1 Second Mortgage Note Settlement I signed up with CCCS, of course all my accounts were 90 days past due because I lost my job and got a divorce. Found out today that the creditors have charged off these accounts and forwarded them on to Collection Agencies and the agencies are unwilling to work with CCCS. I don't have a lump sum to pay and at this point don't know what to do. I thought by working with CCCS the creditors would see my commitment. Where do I go from here, how do I even beginning to dig out of this mess? Signed, Tears
Try to take it one step at a time. I would do what you have to pay off the 2nd mortgage or at least get it current and let the others wait. This is drastic but you may want to sell the house and pay off the mortgages. The credit cards are unsecured so you will not have anything repossessed. You are going to be harassed by collection people so be prepared. You can delay their actions by seeking validation of these accounts. Let them know you are unemployed and unable to make even minimal payments when they call. As a last resort there is always bankruptcy. I was in a similar situation 10 years ago and survived. I managed to payoff everything and paid theprice on my credit report for several years. It will not be easy but it can be done. Try to stay positive
Thank you for taking the time to response. The second mortgage is actually unsecured, because of the divorce and the loss of my job the company worked a deal with my ex and I. We split the second mortgage and make payments for 5 years at no interest. I do have a job now, actually was promoted after just being here 90 days. I've also taken on a second job. I guess I just don't know where to start or even which shovel to pick up to begin digging. CCCS says staying with them isn't benefiting me it's only making it convenient that I have to make only one payment and that they will deal with the collection agencies for me. *sigh*
You could try to go back to some of the original creditors, explain that you were out of work and divorced but now have two jobs and want to do the right thing and pay your bills. Maybe at least some of them will recall the debt, take it back themselves and work out payments. It's a long shot, but worth a try. Otherwise, try a good sob story and try to negotiate for a lesser payoff with the collection agencies. Maybe 50% and you make monthly payments. Also try to get derogatory information removed from your credit report, but if you can't, deal with that later.
I'm not sure that I would call the CA's at all. In my experience, it will just end up frustrating you and in the long run you will likely be bullied into a "deal" that is not in your best interest. I personally would start the validation process with the CA's. This is not necessarily to get out of the debt, but: 1) put some power into your hands (empower yourself -- you'll feel better immediately! don't approach anyone with your hat in your hand! you fell into an unfortunate circumstance that you are now trying to positively address -- good for you!) 2) provide yourself some leverage in terms of possibly cutting the debt in half (or more). additionally, as part of any settlement you can demand that all negative reporting be deleted. (The CA's might try to tell you that they cannot, but stand tough on this -- spend sometime "surfing" this board, there are numerous references to this.) Climbing your way out of debt and into positive credit will take awhile, but it is well worth the effort. Good luck!
I just thought that by proving that I wanted to take care of this they would be more understanding. We all hit tough times at some point, right? Before today i thought I'd moved forward, today I feel I've been thrown against a wall. I have a migraine from crying and seriously wonder why not declare bankruptcy? How can I get ahead when everyday these CA charge me additional interest and fees and my payments aren't putting a dent in it. Thank you all for your advice. Sad thing is I can't even move to cheaper apartment because of all of this affecting my credit.
************ I just thought that by proving that I wanted to take care of this they would be more understanding. We all hit tough times at some point, right? ************ In my experience, those trying to collect money couldn't give a rat's a** about your situation. Even if you happen to encounter someone who seems relatively nice, they are in the business of negotiating the best deal for themselves. There is absolutely nothing wrong with asserting your legal rights and utilizing them to your benefit. Read PsychDoc's "Get A Litigous Mindset" (it's in the FAQ section). **************** Before today i thought I'd moved forward, today I feel I've been thrown against a wall. I have a migraine from crying and seriously wonder why not declare bankruptcy? **************** Get moving -- take control! The law has given you so many tools to deal with this successfully! ***************** How can I get ahead when everyday these CA charge me additional interest and fees and my payments aren't putting a dent in it. ***************** Spend a few hours surfing this website. You will find that you are not alone (in fact, I think that there are many that wish they only had $22K to contend with!) There is no reason that you should be letting this rule your life and make you ill -- take control!!! From what I've learned at CN, you are actually at an advantage dealing with CA's because they are more regulated and they are typically staffed with the best and the brightest. ************ Sad thing is I can't even move to cheaper apartment because of all of this affecting my credit. ************ Fixing your credit isn't as hard as you might think -- read, read, read. There are so many wise people on this site who have generously shared their expertise in dealing with situations exactly like yours (and worse!) Good luck!
Re: Re: Tears, Debt, and Loss of Hope From what I've learned at CN, you are actually at an advantage dealing with CA's because they are more regulated and they are typically staffed with the best and the brightest. ************ What I meant to say was "they are NOT typically staffed with the best and the brightest." Oops!
Re: Re: Tears, Debt, and Loss of Hope Within the past month, I have sent a payment to the "collection agency" that Citibank turned me over to. I sent it in the form of money order. At the bottom of that money order, I wrote my account number on one side and Paid in Full on the other side. I made copies of this, sent it to them, and along with that I also sent a letter disputing the so called "principle" listed in their letter. I included another letter of my own telling them to consider this payment as payment in full and mark the account closed. A young lady I know who has worked in collections (having taken collection courses) told me that I should lose no more sleep over it. According to her, they have messed up depositing that payment and can't collect, because they accepted it as payment in full. Comments anyone?
Merlin All I can say is thank you, thank you, thank you for the time you've taken to post this. It's very encouraging. Now off to begin reading.
Usdi, This is called a restrictive endorsement. Although it sounds good, it is not legal in many states. Do a search here for restrictive endorsement and read those threads.
I deal with correspondence like this almost everyday. What legal action is he referring too and when do I HAVE to declare bankruptcy? From my CCCS rep: Capital One just called me regarding the account with the $62 payment. He's now saying that he will accept $150 per month (instead of the $200 per month that he was asking for in May) to keep the account from entering a legal status. I said, "if XXXXXX can't pay it, she can't pay it--don't you think that if it goes into a legal status and you put her back up against the wall, she'll just declare bankruptcy? I mean, what more can you ask for than a consistent payment amount of $62, and you told XXXX in May that you would post them to the account and that it would impact the balance??" He countered with something like, "well, if she can't pay the $150, then the account will subject to legal action" and I said, "ok, I'll let her know." and he slammed the phone down. THEN he called back about 2 minutes later and said "you understand that the account is not accepted in a Program, so you'll need to take her off the Program" and I said "I can't just TAKE someone off the program, it is up to our clients whether or not they want to remain paying on it, and in her case, she's very happy having us deal with people like you...she's very upset by all of this and feels there is no way out," and he said that we were the only ones benefiting from this, and I retorted that I actually told you it may be best if you remove yourself, so how dare he say that we are benefiting when we try to do what's best for the client in all cases," I then got very quiet and just told him that we WANT you to be able to pay, and YOU want to pay, but that if the money isn't there it just ISN'T THERE, and I asked him what more could he ask for? I explained that he wasn't the only creditor and he should understand that fact. I basically finished with telling him that I'd tell you about the conversation's) we'd had, and that you could decide what you want to do next. I posted yesterday regarding my situation under Tears and Loss of Hope
I just thought that by proving that I wanted to take care of this they would be more understanding. We all hit tough times at some point, right? L_fabulous | ================ They don't give diddley squat about this!
I understand that now, but what options do I have. If I had the money I'd pay it. Now they threaten legal action? It's like they are trying to force me into declaring bankruptcy. Wouldn't that be the last thing they wanted?
Don't get caught up in your creditor's attempt at intimidation. Get your validation letters out!!! (Remember to send them certified mail/return receipt request.) This will stop all calls to you or CCCS for awhile -- enough time for you to catch your breath and plan your attack. How much do you actually owe Cap 1? I'm wondering if it is truly enough for them to go to court over. Threats are just words (while annoying, they can't hurt you). These people are in the business of collecting money and they will use any means necessary if you allow it. They want to get you into a tizzy so that you will do anything they ask to make them go away. Show them that you are not going to allow it. You are letting yourself be distracted. Separate yourself from this emotionally and approach it as you would any other business dealing. You are now in the business of credit repair. Get organized, keep diligent records.
Merlin Do I start with this letter? http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=85495#post85495 and do I send it to the original creditor or the collection agency?
Send The CA This Letter: Here is the Validation Letter you want to send. Don't make any changes on it and don't hand sign it. Your Name Address City State Zip Company Address City State Zip Date RE: Account #_________/Original Creditorâ??s Name Dear Sir/Madame: Thank you for your recent inquiry. This is not a refusal to pay, but a notice that your claim is being disputed. This is a request for validation made pursuant to the Fair Debt Collection Practices Act. Please complete and return the attached disclosure request form. Be advised that I am not requesting a "verification" that you have my mailing address, I am requesting a "validation;" that is, competent evidence that I have some contractual obligation to pay you. You should also be aware that sending unsubstantiated demands for payment through the United States Mail System might constitute mail fraud under federal and state law. You may wish to consult with a competent legal advisor before your next communication with me. Your failure to satisfy this request within the requirements of the Fair Debt Collection Practices Act will be construed as your absolute waiver of any and all claims against me, and your tacit agreement to compensate me for costs and attorney fees. Sincerely, Your Name don't sign - - - Include the following on a separate sheet of paper - - - CREDITOR DISCLOSURE STATEMENT Name and Address of Collector (assignee): _________________________ Name and Address of Debtor: ____________________________________ Account Number(s): ____________________________________________ What are the terms of assignment for this account? You may attach a facsimile of any records relating to such terms. Have any insurance claims been made by any creditor or assignee regarding this account? YES/NO Has the purported balanced of this account been used in any tax deduction claim? YES/NO Please list the particular products or services sold by the collector to the debtor and the dollar amount of each: Upon failure or refusal of collector to validate this collection action, collector agrees to waive all claims against the debtor named herein and pay debtor for all costs and attorney fees involved in defending this collection action. ________________________________ Authorized signature for Collector Date_______/_______/_______ Please return this completed form and attach all assignment or other transfer agreements that would establish your right to collect this debt. Your claim cannot be considered if any portion of this form is not completed and returned with the required documents. This is a request for validation made pursuant to the Fair Debt Collection Practices Act. If you do not respond as required by this law, your claim will not be considered and you may be liable for damages for continued collection efforts. ^^^^^^^^^^^^^^ http://www.memail.com/fotos/index.htm
