Jump to content

Please consider disabling your adblocker for CreditBoards if you have not already done so.  This site depends on advertising revenue to stay online.


Comenity Bank & Other Monsters I Need Help Slaying

Recommended Posts

I appreciate the onslaught of great information I am finding here. Wholeheartedly.

 

Despite the many hours I have spent consuming CB's library of awesomeness, I cannot figure out how to attack a few accounts that I need slayed so I can get back on top of things and stay there.

 

Current credit picture (pretty consistent across each CRA😞

 

Still with OC (and on all reports):

 

  • Comenity/HSN: Owe $5150 / CL was $1050
  • Comenity/Overstock: Owe $2576 / CL was $2250
  • Kohls/Crap1: Owe $1180 / CL was $350
  • Gettington: Owe $884 / CL was IDK....$884 is the merchandise payments I didn't make, with interest I'm sure.
  • Chrysler Capital (EQ/TU). $10,755 chargeoff. Was offered $3,620 just before COVID-19, I balked.
  • Verizon Wireless: $715 owed, chargeoff to internal collector.

 

Just Settled with OC (reports not updated to reflect yet):

 

  • Crappy1: Settled $3066 for $1789 via their attorney collector
  • Discover: Settled $200.14 for $200.14 (did this for future consideration).
  • Heights Finance: Settled $1,519 for $922 direct.
  • First Premier: Settled $891 for $875 direct (SEE BELOW).

 

Just sitting on my credit report:

 

  • Total Visa: $411 owed. Sold to JTM Capital Management, who does not list a collection account because I have pretty much intimidated them into not doing it. (I think).
  • Montgomery Ward. I had started a thread about Experian, with MW being the central focus. They finally answered a BBB complaint and are deleting it from all 3.
  • Chapter 7 BK on Equifax, Experian and Transunion. Just got EQ to delete for failing to verify, EX won't budge, TU still thinking about it.

 

Good Open Accounts:

 

  • AMEX Hilton Honors Aspire (AU😞 $1000 CL, 8 months old, perfect payments (PIF each month). $0 reporting every month.
  • First Premier: $875 CL (got this under a new program where the amount you pay on a FPB chargeoff becomes the credit line on a new account). PIF each month, $0 reporting.
  • Credit One: $400 CL. PIF every month. I let $1-3 dollars report as I heard AZEO is a good score boost method. IDK.

 

Good Closed Accounts:

 

  • EQ: 6 + 2 auto
  • EX: 5 + 2 auto
  • TU: 6 + 2 auto

 

INQ's:

 

  • EQ: 0 (ICED)
  • TU: A billion (33), most to drop off by late-2021. (ICED after disputes are done)
  • EX: 11 (7 which could count as 1). (ICED after disputes are done)

 

FICO8 Scores (10/15/2020):

 

  • EQ: 534 (I expect this to jump soon with BK and 1 baddie gone)
  • EX: 553
  • TU: 588

 

 

Given this information, where should I start to realize the best bang for my buck? Accounts IN RED are in dispute with all three.

 

TIA.

 

Edited by Toast73

Share this post


Link to post
Share on other sites

AZEO will not make much difference if you have major derogs. I would never pay interest just for the theoretical bump from azeo.

 

inquiries do not matter.

 

I would avoid more turds like credit1 and first premier. You're much better off with secured cards than these.

 

settling a charge off, as you've probably read, doesn't mean the account is not still a major derog. Is your goal to avoid being sued?

 

sometimes taking a break from intense repair work can help refresh one's mind and focus to what really matters in the long run.

Share this post


Link to post
Share on other sites
1 hour ago, hegemony said:

AZEO will not make much difference if you have major derogs. I would never pay interest just for the theoretical bump from azeo.

 

inquiries do not matter.

 

I would avoid more turds like credit1 and first premier. You're much better off with secured cards than these.

 

settling a charge off, as you've probably read, doesn't mean the account is not still a major derog. Is your goal to avoid being sued?

 

sometimes taking a break from intense repair work can help refresh one's mind and focus to what really matters in the long run.

 

Yeah, in terms of INQs, I was just posting stats so the total picture was out there.

 

Well, being sued would suck, and would give me a CA and chargeoff posting simultaneously. It would be ideal to have these OCs just sell the accounts and disappear from my reports so I can attempt PFDs with CAs.

 

I agree about stepping back. That could be my best recourse in the long run.

Share this post


Link to post
Share on other sites

well even if the OC sells to a CA the OC can still report a charge off (with zero balance).

 

don't get me wrong, you are doing the right thing by being proactive and trying to take charge of you credit situation. perhaps take a break while you await dispute results.

Share this post


Link to post
Share on other sites
15 hours ago, hegemony said:

well even if the OC sells to a CA the OC can still report a charge off (with zero balance).

 

Yeah, I know. Not sure why Comenity (one example) just won't sell my account. Get it over with. The $0 chargeoffs would drop in 2024, and I can wage war with the CA. I'll fight and fight until they settle for 20-22 cents on the dollar, and when they get my payment, they FOAD in exchange for a PFD.

 

 

Share this post


Link to post
Share on other sites

Still with OC (and on all reports

 

All of these have arbitration except for Cap One. Read the pinned topic. For these amounts it is unlikely they will arbitrate. Unless they have a small claims prohibition (check your state limit to determine what court they will use if they sue) wait to file. You could sent them a letter announcing your intent to arbitrate in the event of legal action, that may scare them off. At least it gives you leverage; right now you don't have any.

Share this post


Link to post
Share on other sites
1 hour ago, legaleagle2012 said:

Still with OC (and on all reports

 

You could sent them a letter announcing your intent to arbitrate in the event of legal action, that may scare them off.

 

I assume this only applies when the OC has the account?

 

At $1100 and some change, I may approach Kohls EO with 40-50% and see if they take it. If they do, ride the storm out.

 

One note that I think may help our community gurus: I went after Comenity a few years back for for TCPA violations, challenging the notion they had my "express written consent" to send text messages. Although the case went nowhere, it appears my old attorney is attached to me when I make contact with Comenity. The last dispute, in fact, was sent to that old attorney AND me.

 

Is that why they have not sold the accounts? I could probably afford to bundle all 3 Comenity accounts together into a settlement around 25-28%; any more would require a payment plan. From there, I could ride out the Chargeoff but at least take solace in knowing a JDB/CA won't be on my a$$.

 

 

Share this post


Link to post
Share on other sites

Arbitration applies no matter who owns the account; it's in the contract they purchased. I would file 2 on Comenity; one for each account. They can't move to consolidate without paying the arb fees; think they'll lay out 12K in fees  to find out?

Share this post


Link to post
Share on other sites
5 hours ago, legaleagle2012 said:

I would file 2 on Comenity; one for each account. They can't move to consolidate without paying the arb fees; think they'll lay out 12K in fees  to find out?

 

Thank you for this, @legaleagle2012 - is there a form, forum link or something so I can learn how to do this properly?

Share this post


Link to post
Share on other sites
18 hours ago, legaleagle2012 said:

Arbitration applies no matter who owns the account; it's in the contract they purchased. I would file 2 on Comenity; one for each account. They can't move to consolidate without paying the arb fees; think they'll lay out 12K in fees  to find out?

How much does it cost to file arbitration?

Share this post


Link to post
Share on other sites

I have spent hours reading through old posts on here regarding arbitration.

 

Looks like with Comenity (HSN), I don't even bear the costs of filing (unless I am reading wrong):

 

"8. Location and Costs of Arbitration: Any arbitration hearing that you attend must take place at a location reasonably convenient to you. We will pay any and all fees of the Administrator and/or the arbitrator if applicable law requires us to, if you prevail in the arbitration or if we must bear such fees in order for this Arbitration Provision to be enforced. If you demand an arbitration, we will pay your reasonable attorneys’ and experts’ fees if you prevail or if we must bear such fees in order for this Arbitration Provision to be enforced. Also, we will bear any fees if applicable law requires us to."

4 hours ago, PotO said:

How much does it cost to file arbitration?

According to what I am seeing on AAA website, $200. All arbs are "document only" unless the amount exceeds $25k unless either party or the arbiter requests otherwise.

 

Telephonic hearings (what I would request) are $1900 + $2,500 (per arbiter) per day.

 

It looks like arbitration would costs Comenity (or any bank, really) $3200 at minimum.

 

Wonder if I should arbitrate a $411 debt with The Bank of Missouri/Total Visa?

Edited by Toast73

Share this post


Link to post
Share on other sites

Your fee as a consumer (assuming they still use AAA) is capped at $200 period. You have to pay it when you file or the case won't go through. The template for the motion is in the pinned topic should you need it. The fees for the bank are listed on the AAA site. More like 5-6K if you include the initial hearing.

Edited by legaleagle2012

Share this post


Link to post
Share on other sites
2 hours ago, legaleagle2012 said:

Your fee as a consumer (assuming they still use AAA) is capped at $200 period. You have to pay it when you file or the case won't go through. The template for the motion is in the pinned topic should you need it. The fees for the bank are listed on the AAA site. More like 5-6K if you include the initial hearing.

 

So, basically you have to pay $200 to file arbitration.  And if you file two cases against them, $400.  Is that correct?

 

In some arbitration agreements I have seen where you can ask the bank to pay the filing fee for you in good faith.  What is your take on that?  

 

Is there any way to stretch out the arbitration so that the bank gets clobbered for more than $5 - $6k?  Sometimes the bank deserves to get FITA rather deeply.  

 

 

Share this post


Link to post
Share on other sites
8 hours ago, PotO said:

 

So, basically you have to pay $200 to file arbitration.  And if you file two cases against them, $400.  Is that correct?

 

 

Correct. As each account has an individual agreement, you pay one filing fee per arbitration. The bank cannot join multiple arbitration hearings, so they must pay each case separately. In my case, they could pay $12k to fight about $7,600.

 

8 hours ago, PotO said:

In some arbitration agreements I have seen where you can ask the bank to pay the filing fee for you in good faith.  What is your take on that? 

 

Some banks will pay your arbitration filing in full; I think I can ask Comenity and Verizon Wireless to pay mine. Some will make the arbiter decided if its prudent. You can ask for a waiver of filing fee, although I am unsure how that works (still studying).

 

8 hours ago, PotO said:

Is there any way to stretch out the arbitration so that the bank gets clobbered for more than $5 - $6k?  Sometimes the bank deserves to get FITA rather deeply. 

 

Cases with under 100 pages of evidence are document only. Sure, you can force the arbiter to work their tail off, but the document-only filings are flat-fee based ($1,400 per case, $1,500 per arbiter unless case hours start climbing). You can request a hearing, but as far as whether you get it or not will depend on your circumstances and, ultimately, the arbiter's decision. Anything over 7 hours and 100 documents, the pay is $300 per hour.

Share this post


Link to post
Share on other sites
10 hours ago, Toast73 said:

 

Correct. As each account has an individual agreement, you pay one filing fee per arbitration. The bank cannot join multiple arbitration hearings, so they must pay each case separately. In my case, they could pay $12k to fight about $7,600.

 

 

Some banks will pay your arbitration filing in full; I think I can ask Comenity and Verizon Wireless to pay mine. Some will make the arbiter decided if its prudent. You can ask for a waiver of filing fee, although I am unsure how that works (still studying).

 

 

Cases with under 100 pages of evidence are document only. Sure, you can force the arbiter to work their tail off, but the document-only filings are flat-fee based ($1,400 per case, $1,500 per arbiter unless case hours start climbing). You can request a hearing, but as far as whether you get it or not will depend on your circumstances and, ultimately, the arbiter's decision. Anything over 7 hours and 100 documents, the pay is $300 per hour.

 

Can you file your case also claiming something like racial discrimination or something equally as illegal and then use the discovery process to request millions of pages of their documents showing how they treat minorities?  Like a fishing expedition. That would cost them a lot.

 

Also, can you request more than one arbiter?  

Edited by PotO

Share this post


Link to post
Share on other sites
2 hours ago, PotO said:

 

Can you file your case also claiming something like racial discrimination or something equally as illegal and then use the discovery process to request millions of pages of their documents showing how they treat minorities?  Like a fishing expedition. That would cost them a lot.

Those who elect arbitration have enough evidence to establish a prima facie (on first impression) case that could survive reasonable doubt and win in court.

 

Arbitration shouldn't be used to draw assumptions or to shoot rubber bands in hopes of hitting something. That could get expensive.

 

The goal of arbitration, unless you believe monetary damage has been done to you, is to make creditors go away. Never to sell your charged off account or mention your name in passing again.

 

If you personally have 10 pages or 1 million pages of evidence to prove discriminatory actions have been taken against you, by all means write a Notice of Intent. If the company feels you have a strong enough case, who knows what they may shove in your coffers to make you piss off.

 

Once you file, in the discovery process, an arbiter could force the company in question to fork over an additional 1 million pages. Document-only cases are limited to 100 pages and 7 hours before it starts getting very, very expensive.

 

2 hours ago, PotO said:

Also, can you request more than one arbiter?  

 

You can request a room full of arbiters. You will probably only get one unless the merits of your cases demand additional hands, eyes and ears.

Share this post


Link to post
Share on other sites
1 hour ago, Toast73 said:

Those who elect arbitration have enough evidence to establish a prima facie (on first impression) case that could survive reasonable doubt and win in court.

 

Arbitration shouldn't be used to draw assumptions or to shoot rubber bands in hopes of hitting something. That could get expensive.

 

Maybe not.

 

The goal is to FITA a creditor until it's so painful to them that they roll over and play dead.  

 

You are paying the $200 filing fee anyway, so making it as expensive as possible for the bank is just icing on the cake.  The more pain you inflict on them, the better the outcome for you.  

 

That is what I did with Stinkrony and faced with an avalanche of legal fees, they decided to give me what I wanted.  More than what I wanted, actually.  

Share this post


Link to post
Share on other sites

I have a question for anyone that has knowledge.

 

Can I arbitrate with a company who has no arbitration clause?

 

Looks like Capital One took arbitration out of their own cardholder agreements, and those they back (Kohl's, in my case).

Share this post


Link to post
Share on other sites

No, you cannot. That's why AAA and JAMS require a copy of the agreement. Also, the FAA USC9 requirement is that there be a valid arbitration clause in the agreement under controversy. Silly, meritless claims like racial discrimination will just get your case thrown out and deemed frivolous, in which case they can make you pay the other side's costs. The controversy has to be contractual, not the product of somebody's imagination after watching too many episodes of Law & Order.

Share this post


Link to post
Share on other sites
1 hour ago, legaleagle2012 said:

No, you cannot. That's why AAA and JAMS require a copy of the agreement. Also, the FAA USC9 requirement is that there be a valid arbitration clause in the agreement under controversy. Silly, meritless claims like racial discrimination will just get your case thrown out and deemed frivolous, in which case they can make you pay the other side's costs. The controversy has to be contractual, not the product of somebody's imagination after watching too many episodes of Law & Order.

 

False.

 

If you file arbitration and allege, for example, violations of the ECOA, you are on solid ground.  You heard of ECOA, right?  Oh, wait ... you never graduated law school.  

 

It's only silly to you because you don't know what you are talking about.

Share this post


Link to post
Share on other sites
2 hours ago, legaleagle2012 said:

No, you cannot. That's why AAA and JAMS require a copy of the agreement. Also, the FAA USC9 requirement is that there be a valid arbitration clause in the agreement under controversy. Silly, meritless claims like racial discrimination will just get your case thrown out and deemed frivolous, in which case they can make you pay the other side's costs. The controversy has to be contractual, not the product of somebody's imagination after watching too many episodes of Law & Order.

My point of contention would be if the 2008 version of the Capital One Card Holder Agreement had a survivability clause in there, and whether or not that survivability would supercede the removal of the survivability clause in 2009 when Capital One removed arbitration and survivability from the CHA.

 

2 hours ago, PotO said:

If you file arbitration and allege, for example, violations of the ECOA, you are on solid ground.

I'm reading up on the ECOA laws now.

Share this post


Link to post
Share on other sites
3 hours ago, Toast73 said:

My point of contention would be if the 2008 version of the Capital One Card Holder Agreement had a survivability clause in there, and whether or not that survivability would supercede the removal of the survivability clause in 2009 when Capital One removed arbitration and survivability from the CHA.

 

I'm reading up on the ECOA laws now.


I have no idea at all about your issue with the CapOne agreement as it relates to arbitration.  
 

My case was different from yours.  I had an issue where Stinkrony closed my accounts and gave me a b.s. reason in their adverse action letter.  When I contacted their EO, they admitted they lied, but then turned around and lied again.  
 

I did not file arbitration.  I filed in court knowing that they could then file to compel arbitration.  This is what I wanted.  Filing in court was cheaper for me that filing arbitration and there was always the chance that they would not file a motion to compel arbitration.  Had it stayed in state court, Stinkrony would have gotten FITA extremely deeply.  
 

When they contacted my cousin (my lawyer) and stated they would file to compel arbitration, he mentioned that was fine.  We were alleging ECOA violations and redlining and the discovery process in arbitration would have cost them a fortune.  They agreed to capitulate.  I got almost everything I wanted. 

I don't see how you could apply the ECOA to your case, but if you can that can be used to force generation of tons of data.  And that will cost them a hell of a lot of money plus their legal fees and costs associated with compiling the data.  

Share this post


Link to post
Share on other sites
3 hours ago, PotO said:

I don't see how you could apply the ECOA to your case, but if you can that can be used to force generation of tons of data.  And that will cost them a hell of a lot of money plus their legal fees and costs associated with compiling the data. 

Just with my HSN account alone, I am going to request in discovery every page of my account history, every mailing they supposedly sent me regarding defaults, payments, and the likes. I am going to compel them to send me delivery confirmations, phone logs and EVERYTHING they have.

 

Still looking to see if any ECOA violations would apply. Same with the Fair Credit Billing Act.

 

Once discovery has been completed, I then hope the arbiter spends 30 hours combing through it all.

 

(Yes, I know that statement is wishful thinking.)

 

As they allege a debt is owed, I want to know how they arrived at the figure they did, which will require them to submit a good amount of stuff. And when they do, I will submit my answer in 14 point font, line by line, taking up 50 pages if needed.

Edited by Toast73

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.





About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×
×
  • Create New...

Important Information

Guidelines