HELP!! Creditor is calling to settle debt, and I don't know what to do

[osssmosis]

I have had good credit since I graduated highschool (1996) Unfortunately I had an accident the weekend after Christmas 2003 and was hospitalized for about 2 months, and then spent almost an entire year recovering. At the time I owed one of my credit card companies about $8000 and I have not made a payment since. I have been paying my medical bills, and other debts that I have. A representative from their collection agency called me today and told me that their client has no interest in monthly payments but wants one lump sum or they will proceed to collect the debt from me involuntarily. What do I do?? I offered to give them 5 monthly payments to pay this off and they refused. They basically said its one lump sum or nothing... They mentioned that they saw that I had available credit on a credit card that I am a signer of and they told me that I could put it on that. Unfortunately this credit card is not mine and this is not an option. What should I do?? I am confused and don't know where to go from here.
THanks

 

[cmorris]

Send a letter, certified mail return receipt, offering to settle the debt or a monthly payment plan. You can include a limited cease and desist so they can only contact you through mail. However, since you defaulted on the $8K, they may sue you and obtain a judgment.

Best of luck. Try going to creditboards.com.

 

[osssmosis]

should I just contact the original credit card company and try and work something out with them??? also what if they end up sueing me. Can they take my car?? I don't own a home...

 

[freddy48]

Just wanted to let you know that they can't take your car. Not sure what state you are in, but if they are able to sue you they will just garnish your wages.

 

[LeGina Marie]

Hey there. I am in New Mexico and I do not know if the laws are different but I do know some things about Credit. I am currently a CSI but I have my own credit company Clean Slate on the side. What it is, is credit restoration. I help people to clean up their credit. I believe that in 2000 they passed the Fair Credit Act. Anyways, what I am getting at is that the credit companies are going to tell you anything that you want to hear. Without having a judgement against you they can not put any monies owed by you onto someone else's credit card. And I do believe that even with a judgement against you they still couldn't. But the one thing that people get confused on is that it is still a negative account. Your negative credit stays in your report for 7 years, and if it is a BK then it's 10 years. But even if you pay on it, then the account is still a negative account and creditors will look at this when you go to apply for things. And from the last date of activity it will start the clock rolling allover again. Also, even if you were to contact the original credit company it will still be a negative account. But you might be able to get them to settle for you. They could garnish your wages though, but that is about it.

 

[osssmosis]

I am in California, and would it help me any if I were to contact the original credit card company and try and work something out with them??? or is the collection agency my only avenue for working this out??? Thanks so much for the advice so far. I told the collection agency that I would call them back tomorrow afternoon. What should I tell them when I call?

 

[osssmosis]

Hey Freddy48 you just made my day!!! How do you know? its the only thing I own and I've worked extremely hard for my car and I own in completely. I just don't want any creditor to take it. Oh, and I live in California

 

[freddy48]

From what I've read you owe 8,000. I don't know if they have talked about a settlement or even if you want to do that. You said you could get it taken care of in 5 months. So I understand 5 paymetns of 1,600.00. I can't imagine they wouldn't take payments. Some companies have different procedures. You might want to contact the original credit card company and then call the collection agency. I don't know your exact financial situation or exactly how many days you are past due, but give it try.

 

[freddy48]

glad I could make your day. the credit card company is not secured on your car. You say you own your car, so you have title. A company can repossess a vehicle if they are secured on it (have the title) if they don't have the title they can't repossess it. I work in the field, but I don’t handle credit cards. If you don’t mind and I don’t know if I am overstepping my boundaries how many days are you past due, just trying to get a better understanding.

 

[osssmosis]

Freddy48 I am about a year past due. I'm just getting back on my feet now. This year's been difficult.

 

[freddy48]

i'm guessing the credit card company sold this to an agency, being about a year behind. did they offer you a settlement or hint around a price to pay to call it good? are you still working and if so, the same company at the time of the accident. you said the balance was about 8000 back in 2003, so it's more now, but if they look at garnishment, that takes time and money. you said you could pay in 5 months, was that for a settlement or for the entire debt? if the entire debt, i can't see why they wouldn't want to set that up. good luck and let me know what happens.

 

[cmorris]

Stay off the phone and send the limited cease and desist letter (certified mail, return receipt) today. You only want to do things by mail, so you have a papertrail. They may tell you one thing on the phone, and never follow through (been there, done that).

I am unfamiliar with what they can seize, but that would be awhile. They have to sue and gain a judgment first.

 

[mominnc]

Freddy48 I am about a year past due. I'm just getting back on my feet now. This year's been difficult.

Go to Bud Hibbs website. Even email him and he'll answer your questions. It's great

 

[osssmosis]

This morning I tried calling the original credit card company and they told me that they charged off my account in June. What does this mean? Also if the collection agency calls me today what should I say???? They are calling me at work...

 

[freddy48]

That's what i figured.

1st off, A charge-off means the creditor wrote off the debt and will no longer pursue payment. Charge-offs stay on your credit report for seven years and are considered a serious notation. In addition, some charged-off accounts may be sold to collection agencies at a later date, which happened, allowing the collection of the debt to be reactivated.

2nd, you can request no calls at work, they have to respect that.

let me know if you spoke w/ them