Commerce Bank Credit card with collection agency

[tcjarrett]

I had a credit card with Commerce bank. I started getting letters from Douglas Chancellor and Meyers about a year ago before I found this forum or knew ANY of my rights. So I did not DV them. I set up payment arrangements. The rep I speak to never lets me skip a payment. He always says if I miss a payment they will file suit. And always wants higher payments, saying that I'm not even covering the interest each month. DC & M is not reporting this on any of my credit reports. Commerce has their TL listed and has not reported since 2010. It is listed as charged off and the last payment was July 2009. The amount past due and amount charged off does not match DC&M' s amounts.

 

Recently I contacted Commerce directly and tried to do some nosing around. Played dumb and asked when the last payment was, if this is closed or still being charged interest. Both a regular rep and someone in the recovery dept told me it has been closed, charged off, not accruing interest and sold to a 3rd party.

 

Today I had my DV letter to DC&M in hand ready to send off and stop payments. ( I was positive they were a JDB) when I got a call from the Commerce recovery dept returning a message I had left last week. Now Commerce is saying the account has not been sold, only outsourced to a 3rd party collection agency. It is still accruing 21% interest and the payments made to DC&M are showing in their system as being forwarded to Commerce.

 

So, I obviously have restarted the clock. This is still owned by the OC and it is still racking up ungodly amounts of interest. I am not in a position to offer a settlement.(the balance is upwards of $4000) And I can barely manage the $56/ month payments.

 

At this point I can only afford to make minimal payments, maybe around $25/month until I can either pay more or be financially able to offer a settlement. My question is this...how do I negotiate with them to lower those payments and prevent them from filing suit? I am self employed and so my business fluctuates. Had some personal and business problems the last few months and have financial obligations that are way more important than an old credit card (for example, my month to month lease is ending in 8 days and I'm trying to find a new place to live for me and 3 kids and cover the expenses of doing so) on top of multiple other debts I'm trying to clear up from a few years ago when I lost my job.

 

Do I tell them I just financially can't afford what they want? Let them file suit and plead my case to a judge? Should I seek the assistance of a credit counseling program who may have more leverage?

 

I have searched the boards for others who have dealt with this collection agency and haven't found much. So anyone who is familiar with them or a similar situation I would appreciate your guidance. I'm drowning in bills and trying to repair my credit so I don't need another judgement, but if they are unwilling to negotiate with me then I may just be stuck with a lawsuit...? Since I'm self employed they can't garnish my wages, Could levy my bank accounts if they wanted to get aggressive. But I have told them before I work odd jobs and only part time, if you want to sue me go ahead cause you won't get anything. If you want any money you will take what I can give you thru payment arrangements. Not sure if that attitude will work again ?