Credit Card Repayment

[ciciryder]

What is the name of your state? California

I am in the process of cleaning my credit report and have requested all three agencies, and in review, seem to be better off than initially anticipated.... BUT i have a couple of recent credit card accounts that I need to settle. First, what action can they take to acquire payment in full? I am a single working mom and had a hard time repaying, even though I made numerous attempts. The last one resulted in my making a payment arrangement of a predated check over the phone since I was expecting a deposit ( a bank mix-up that left me $1,500 less in my account, and had to wait for the investigation to be completed). I kept them informed and when I tried to warn them I didn't have the funds, they said to figure it out. I panicked and placed a stop payment. I would like to pay them off (I have accumulated $1,363 on one credit card and $2,037 on another), but would like to work out a deal.... what would be the best way to do this, and what can they legally threaten me with once I call to make arrangements? I want to be prepared in settling this matter. Thank you in advance!

 

[nov99]

The ultimate decision on whether to settle your accounts is up to your creditor. They need to feel that is in their best interest to settle with you.
As far as threatening you with legal action, they may not unless they actually intend on doing so. Since your debts are not to excessive it would probably be a better option for them to settle with you instead of getting a judgement. If they do get a judgement they may enforce it with a garnishment of your wages.
If they are afraid that you are considering bankruptcy there is a chance they will offer to settle with you. You should negotiate with them because it is likely they will acept less then their initial offer. Whatever you do, do not let them talk you into enrolling the services of a credit counselor "CCCS" or "not-for-profit".

 

[Ladynred]

Nov99, please read carefully -
Original creditors are NOT, repeat NOT, bound by the FDCPA.

There is nothing to indicate that the OP is dealing with anyone but the O.C. here. IF the accounts have been charged-off and a 3rd part collector is involved, then your statement regarding legal threats is correct.

Cici, you state that these accounts are 'recent' - HOW recent ? Are the approaching charge-off or are they just a month or 2 behind ?

If they have not been charged-off yet, and your're only 1-2 months behind, the creditors will be unlikely to settle. They won't even consider putting you on a hardship program until you're at least 3 months behind. The closer you get to charge-off, the more likely they are to settle. After charge-off, you might risk being sued, but unless you're dealing with Discover, even that isn't going to happen right away. The longer it goes, the more likely they are to settle and for a lesser amount.