Negotiating with Credit Card Companies

[maya0214]

Hi All,

I have credit card debts with Discover, Amex and 2 of Citi Cards. Last payment i made was in April 2011 on all these 4 cards. I am in FL and as per Florida Statue of Limitations of Debt, it is 5 years. Not sure how to what to offer to these CC companies, since debt is too old, its roughly $14000, $1000 and $7000 on each Citi Cards.

Can I get your expert opinions or suggestions on this, I would like to settle these debts, since its hurting my loan process.

Thanks

[CreditStingy]

You can try to negotiate a "pay for deletion" with there collections departments. Remember to be nice. They may settle for 50%. Half money is better than no money. If (a big IF) they agree, make sure you get the agreement in writing first. Keep all correspondence, faxes, emails and payment receipts. You'll need these for the credit bureaus. Expect the process to take 8-12 weeks. Good luck!

[cv91915]

You can try to negotiate a "pay for deletion" with there collections departments. Remember to be nice. They may settle for 50%. Half money is better than no money. If (a big IF) they agree, make sure you get the agreement in writing first. Keep all correspondence, faxes, emails and payment receipts. You'll need these for the credit bureaus. Expect the process to take 8-12 weeks. Good luck!

No, no, no. Never provide those things to the credit bureaus. Those are to sue for breach of contract, if necessary.

Edited April 20, 2015 by cv91915

[parisamour]

Sending receipts to the CRAs is only going to get it updated to paid and make it stick like glue on your reports!

IMHO

[CreditStingy]

It worked for me, but maybe I was the exception. My FICOs were in the 580-590 range in December 2013 due to my ex-wife running up bills during our divorce. After following several steps I learned online, I stuck with it, letter writing, phone calling, etc. I got the agreements in writing from the creditors, then made the payments and they emailed the release letter to me, same day. The items were removed within a week, except for Cap One (they don't deal}. By April 2014 my FICOs were mid-700s. Since then I secured a $375K home loan at the best rate (5% down, no PMI), I have almost $70K available in CC limits and secured a major C-level job promotion.

 

We all mean well in our advice, but I recommend that you continue to research before giving up.

[cashnocredit]

OP: I wouldn't do anything until reaching the Fla. SOL (4 years past the due date of unpaid bills.) Since the last payments were in 4/11 this could be as late as June depending on the bill and payment timing.

 

CV: Creditstingy wasn't saying OP should provide the records to the CRAs but just to keep them if needed to enforce an agreement should the CAs not follow through. Always a good idea to keep all debt related records and not just for this sort of issue.

[cv91915]

 

You can try to negotiate a "pay for deletion" with there collections departments. Remember to be nice. They may settle for 50%. Half money is better than no money. If (a big IF) they agree, make sure you get the agreement in writing first. Keep all correspondence, faxes, emails and payment receipts. You'll need these for the credit bureaus. Expect the process to take 8-12 weeks. Good luck!

No, no, no. Never provide those things to the credit bureaus. Those are to sue for breach of contract, if necessary.

 

 

OP: I wouldn't do anything until reaching the Fla. SOL (4 years past the due date of unpaid bills.) Since the last payments were in 4/11 this could be as late as June depending on the bill and payment timing.

 

CV: Creditstingy wasn't saying OP should provide the records to the CRAs but just to keep them if needed to enforce an agreement should the CAs not follow through. Always a good idea to keep all debt related records and not just for this sort of issue.

 

That's not how I read it, even the second time. Sending any of those things to the credit bureaus could help substantiate the legitimacy of the trade line and make it more difficult (or impossible) to remove.

[EarnIt]

 

Hi All,

I have credit card debts with Discover, Amex and 2 of Citi Cards. Last payment i made was in April 2011 on all these 4 cards. I am in FL and as per Florida Statue of Limitations of Debt, it is 5 years. Not sure how to what to offer to these CC companies, since debt is too old, its roughly $14000, $1000 and $7000 on each Citi Cards.

Can I get your expert opinions or suggestions on this, I would like to settle these debts, since its hurting my loan process.

Thanks

 

Before settling any debt, you need to verify who owns the debt. If the original creditors sill own these, at this point you should be able to settle for much less than 50%. Do you have any old settlement correspondence/offers? Are you still receiving phone calls on the debt?

 

Do you have the cash for a lump sum settlement?

 

 

 

[EarnIt]

OP: I wouldn't do anything until reaching the Fla. SOL (4 years past the due date of unpaid bills.) Since the last payments were in 4/11 this could be as late as June depending on the bill and payment timing.

 

CV: Creditstingy wasn't saying OP should provide the records to the CRAs but just to keep them if needed to enforce an agreement should the CAs not follow through. Always a good idea to keep all debt related records and not just for this sort of issue.

The OP might be close enough to the date to make it worth the risk. It all depends on the urgency of the need.

 

OP, make sure do you don't portray a sense of urgency when negotiating the settlements. I let the creditors contact me first and then proceeded from there.

[CreditStingy]

OP: Contextually, I did not mean to imply submitting docs to the CBs first. By keeping the settlement agreement documentation and a call log, you can force the CBs to remove the items, if the original creditor does not hold their end of the "pay to delete" agreement. Under FCRA, the CBs have to accept your evidence and investigate/ remedy within 30 days of receipt. Definitely check with your state's credit laws and statutes of limitations before admitting any debt to a creditor. If they have not filed suit yet, you may not want to inadvertently restart the clock this close to the end.

 

Good luck and good credit to you!

 

OP: I wouldn't do anything until reaching the Fla. SOL (4 years past the due date of unpaid bills.) Since the last payments were in 4/11 this could be as late as June depending on the bill and payment timing.

 

CV: Creditstingy wasn't saying OP should provide the records to the CRAs but just to keep them if needed to enforce an agreement should the CAs not follow through. Always a good idea to keep all debt related records and not just for this sort of issue.

The OP might be close enough to the date to make it worth the risk. It all depends on the urgency of the need.

OP, make sure do you don't portray a sense of urgency when negotiating the settlements. I let the creditors contact me first and then proceeded from there.

 

OP: Contextually, I did not mean to imply submitting docs to the CBs first. By keeping the settlement agreement documentation and a call log, you can force the CBs to remove the items, if the original creditor does not hold their end of the "pay to delete" agreement. Under FCRA, the CBs have to accept your evidence and investigate/ remedy within 30 days of receipt. Definitely check with your state's credit laws and statutes of limitations before admitting any debt to a creditor. If they have not filed suit yet, you may not want to inadvertently restart the clock this close to the end.

 

Good luck and good credit to you!

[cv91915]

OP: Contextually, I did not mean to imply submitting docs to the CBs first. By keeping the settlement agreement documentation and a call log, you can force the CBs to remove the items, if the original creditor does not hold their end of the "pay to delete" agreement. Under FCRA, the CBs have to accept your evidence and investigate/ remedy within 30 days of receipt. Definitely check with your state's credit laws and statutes of limitations before admitting any debt to a creditor. If they have not filed suit yet, you may not want to inadvertently restart the clock this close to the end.

 

Good luck and good credit to you!

 

OP: I wouldn't do anything until reaching the Fla. SOL (4 years past the due date of unpaid bills.) Since the last payments were in 4/11 this could be as late as June depending on the bill and payment timing.

 

CV: Creditstingy wasn't saying OP should provide the records to the CRAs but just to keep them if needed to enforce an agreement should the CAs not follow through. Always a good idea to keep all debt related records and not just for this sort of issue.

The OP might be close enough to the date to make it worth the risk. It all depends on the urgency of the need.

 

OP, make sure do you don't portray a sense of urgency when negotiating the settlements. I let the creditors contact me first and then proceeded from there.

 

OP: Contextually, I did not mean to imply submitting docs to the CBs first. By keeping the settlement agreement documentation and a call log, you can force the CBs to remove the items, if the original creditor does not hold their end of the "pay to delete" agreement. Under FCRA, the CBs have to accept your evidence and investigate/ remedy within 30 days of receipt. Definitely check with your state's credit laws and statutes of limitations before admitting any debt to a creditor. If they have not filed suit yet, you may not want to inadvertently restart the clock this close to the end.

 

Good luck and good credit to you!

 

Wrong, wrong, wrong.

[Bulldog21]

OP: Contextually, I did not mean to imply submitting docs to the CBs first. By keeping the settlement agreement documentation and a call log, you can force the CBs to remove the items, if the original creditor does not hold their end of the "pay to delete" agreement. Under FCRA, the CBs have to accept your evidence and investigate/ remedy within 30 days of receipt. Definitely check with your state's credit laws and statutes of limitations before admitting any debt to a creditor. If they have not filed suit yet, you may not want to inadvertently restart the clock this close to the end.

 

Good luck and good credit to you!

 

OP: I wouldn't do anything until reaching the Fla. SOL (4 years past the due date of unpaid bills.) Since the last payments were in 4/11 this could be as late as June depending on the bill and payment timing.

 

CV: Creditstingy wasn't saying OP should provide the records to the CRAs but just to keep them if needed to enforce an agreement should the CAs not follow through. Always a good idea to keep all debt related records and not just for this sort of issue.

The OP might be close enough to the date to make it worth the risk. It all depends on the urgency of the need.

 

OP, make sure do you don't portray a sense of urgency when negotiating the settlements. I let the creditors contact me first and then proceeded from there.

 

OP: Contextually, I did not mean to imply submitting docs to the CBs first. By keeping the settlement agreement documentation and a call log, you can force the CBs to remove the items, if the original creditor does not hold their end of the "pay to delete" agreement. Under FCRA, the CBs have to accept your evidence and investigate/ remedy within 30 days of receipt. Definitely check with your state's credit laws and statutes of limitations before admitting any debt to a creditor. If they have not filed suit yet, you may not want to inadvertently restart the clock this close to the end.

 

Good luck and good credit to you!

 

If the OC does not adhere to the contract you would sue for breach of contract, NOT provide documentation to the CRA's that the debt was valid.

[cashnocredit]

 

 

You can try to negotiate a "pay for deletion" with there collections departments. Remember to be nice. They may settle for 50%. Half money is better than no money. If (a big IF) they agree, make sure you get the agreement in writing first. Keep all correspondence, faxes, emails and payment receipts. You'll need these for the credit bureaus. Expect the process to take 8-12 weeks. Good luck!

No, no, no. Never provide those things to the credit bureaus. Those are to sue for breach of contract, if necessary.

 

 

OP: I wouldn't do anything until reaching the Fla. SOL (4 years past the due date of unpaid bills.) Since the last payments were in 4/11 this could be as late as June depending on the bill and payment timing.

 

CV: Creditstingy wasn't saying OP should provide the records to the CRAs but just to keep them if needed to enforce an agreement should the CAs not follow through. Always a good idea to keep all debt related records and not just for this sort of issue.

 

That's not how I read it, even the second time. Sending any of those things to the credit bureaus could help substantiate the legitimacy of the trade line and make it more difficult (or impossible) to remove.

 

 

 

 

You can try to negotiate a "pay for deletion" with there collections departments. Remember to be nice. They may settle for 50%. Half money is better than no money. If (a big IF) they agree, make sure you get the agreement in writing first. Keep all correspondence, faxes, emails and payment receipts. You'll need these for the credit bureaus. Expect the process to take 8-12 weeks. Good luck!

No, no, no. Never provide those things to the credit bureaus. Those are to sue for breach of contract, if necessary.

 

 

OP: I wouldn't do anything until reaching the Fla. SOL (4 years past the due date of unpaid bills.) Since the last payments were in 4/11 this could be as late as June depending on the bill and payment timing.

 

CV: Creditstingy wasn't saying OP should provide the records to the CRAs but just to keep them if needed to enforce an agreement should the CAs not follow through. Always a good idea to keep all debt related records and not just for this sort of issue.

 

That's not how I read it, even the second time. Sending any of those things to the credit bureaus could help substantiate the legitimacy of the trade line and make it more difficult (or impossible) to remove.

 

 

You were right CV. I see from the OP's later responses that he did intend to send PFD dox to CRAs and yes, that is a VERY BAD IDEA unless you do one very important thing. Never put in writing that you will PFD without also stating you believe the debt is not yours. You should always say you are willing to PFD as purely a matter of convenience to settle the issue and that you believe the debt is simply not valid. It is also a good idea in any PFD negotiation because it gets the CAs off the hook as they are not supposed to do PFDs for valid debts. Doing this may make some CAs more receptive to PFD and it certainly will not harm your chances.

 

This protects you from inadvertently affirming the debt reporting to CRAs.

 

Otherwise sending PFD info to CRAs is like someone complaining to the CFPB that Amex isn't backdating their shiny new Amex card. It's dumb.

Edited April 20, 2015 by cashnocredit

[Bulldog21]

 

Hi All,

I have credit card debts with Discover, Amex and 2 of Citi Cards. Last payment i made was in April 2011 on all these 4 cards. I am in FL and as per Florida Statue of Limitations of Debt, it is 5 years. Not sure how to what to offer to these CC companies, since debt is too old, its roughly $14000, $1000 and $7000 on each Citi Cards.

Can I get your expert opinions or suggestions on this, I would like to settle these debts, since its hurting my loan process.

Thanks

 

 

FYI, FL SOL is 4 years on credit cards. CITI, AMEX, & Discover will all settle since 10% is more than 0%, or 10% of $100 is more than 100% of $0. AMEX will want to be made whole if you ever want their cards again.

[EarnIt]

 

 

Hi All,

I have credit card debts with Discover, Amex and 2 of Citi Cards. Last payment i made was in April 2011 on all these 4 cards. I am in FL and as per Florida Statue of Limitations of Debt, it is 5 years. Not sure how to what to offer to these CC companies, since debt is too old, its roughly $14000, $1000 and $7000 on each Citi Cards.

Can I get your expert opinions or suggestions on this, I would like to settle these debts, since its hurting my loan process.

Thanks

 

 

FYI, FL SOL is 4 years on credit cards. CITI, AMEX, & Discover will all settle since 10% is more than 0%, or 10% of $100 is more than 100% of $0. AMEX will want to be made whole if you ever want their cards again.

 

Sometimes, Amex will forgive you without being made whole ... but I do agree that all creditors will settle at this point, provided they still own the debt ...