Sir J
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They won't sue you.
Get together $2000 and offer them a "settlement in full."
Don't give them access to your account and don't do anything until they make the offer in writing. |
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Travis R
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They most likely won't sue. I never got sued, and just waited it out until my debt was a charge off. If you get an official document saying you are being sued, they probably would still accept a payment plan instead of suing. I would wait and see. It won't cost you anything. |
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abfabmom1
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It is very common for them to use that kind of scare tactic.
Let them know that you can pay $X per month, and if that is not suitable for them, then recommend that they take you to court.
More often than not, the cost of actually going to court is more than the expense of carrying your debt for a little while longer, and they'll accept your offer. |
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Jeffrey H
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I have dealt with this problem for an ex and it's really simple. Typically at this point the credit card company no longer has anything to do with the card and they have sold your debt for pennies on the dollar to a collection agency. Call the number on the mailing that you receive, typically a pink or green form letter wanting to collect the debt. You want to ask for a "charge off". This is a reduced amount of what you owe, typically 40-60% of the amount owed. Then once you have settled on an amount you can work out payments that you can afford with the company.
Please note two things: 1)A charge off will still show up on your credit report for the next 7 years. A bankruptcy however will show up for 10 years. 2)The IRS may (I stress may) bill you for the taxes on the difference between what is owed and what is settled. In the eyes of the IRS, the bank "gave" you the difference of what you owed as a gift and this is taxable. |
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Excavating & Drilling
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Every one told me even lawyers that the credit card companies can't do anything so I blowed them off for years .Then I came home one day with Levy's on stuff I could not move anything they were going to sell my vehicles for 5k in debt ? So I went and filed chapter 7 and it stopped all calls any the levy .but I also had 70k in medical bills so if I were you I would just try to pay it or go to CCC.. |
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twicewise
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I have two suggestions:
1. The best thing to do is go to a credit counseling service. There are Consumer Credit Counseling agencies in most areas. It is a little bit of work to find a good one, but pick an agent that is a non-profit agency. They'll work with you and your creditors to help you set up a payment schedule and help rebuild and protect your credit. These counseling groups are great and usually work for a donation each month. I highly recommend this!
2. If you want to fight your CC company, get a lawyer. It would be an expensive and uphill battle, and you'd still end up owing it. But it is better than doing it on your own.
There are folks out there who prey on people in financial stress, so be careful! |
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moonshadow
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More than likely the caller wasn't actually from a lawyer's office at all, but instead with a collection agency hired by Visa. I got a call like that once from a collection agency regarding a debt I had been making monthly payments on.....The guy started off by telling me the lawsuit had already been filed, but backed off when I started asking some very specific questions about the lawsuit.
He finally conceded there was no lawsuit and then started negotiating a settlement amount with me (less than the full amount owed).
Unless you've already been through that process, that's probably where things stand with your situation right now too. Some of these independent collection agencies are downright brutal over the phone and will say just about anything to scare you into agreeing to something.
I very much doubt any attorney would double as a bill collector, so the fact that this person wanted you to make payments directly to him is a pretty good indicator that he wasn't a lawyer.
Believe me, they will take less than $350/month from you if you can set up a regular payment schedule and stick to it. These people are ruthless, but once they see that you're not trying to get out of a debt that you're responsible for, their attitude changes. They're hired to collect -- not incur more expenses by filing a lawsuit over such a relatively small amount.
I know it's scary, but just talk to them....it may take some work on your part, but they WILL eventually listen to you.
Obviously after 5 years this has already had a negative impact on your credit rating, but it will be much more damaging if they charge you off.
Whatever you do -- do not, I repeat DO NOT get involved with any sort of credit counseling business.....you'll end up losing a ton of money to them and your debt will never go down. Also, don't fall for any "big loans with no credit check" scams.
Just talk to the person who calls you and let them know you want to pay your debt, but can't afford 350/month....ask them directly for an alternate plan. I promise -- they'll offer other ideas.
Good luck to you. |
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.:MS. LADI:.
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If you have accumulated too much debt, filing chapter 13 could work and no one that you owe can bother you at all and you would have to pay 1 amount per month for all the companies that you may owe, but like everyone else said consult a lawyer first. |
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kja63
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Scare tactic!
Credit card debt is unsecured debt. You offer no collateral on the debt, so they can't go after any of your assets for repayment. Never, ever go to a credit counselor. They are scams and charge you more fees to do what you can do for yourself. Also, no need for a lawyer. Again, more fees charged for what you can do on your own.
However, they can take you to court and the court may garnish your wages. But that is RARELY done.
You should set up a repayment plan with them. Most company's will settle for 40 cents on the dollar. Offer them $1600 as payment in full. If they accept (be sure you get their acceptance in writing before paying them a dime), this will reflect negatively on your credit rating but at least you will be done with this. However, if you don't have the money to pay off the bill, offer them a repayment plan. Ask for a reduced monthly payment and reduced interest rate. Most company's will accept a 1.5% interest rate from you. |
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Beje
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Don't waist your time going to a lawyer.
Save like crazy.....don't spend on anything..only the bare necessities. If need be get a second job.
You need to get angry about this and get them off your back. yes you do owe the money and you have to pay it back...trust me they will take 50 cents per every dollar you owe.
Don't let them scare you but also don't be rude with them..makes things worse. |
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NONAME
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check your state statutes your boss may be right. but remember it is from your last payment - do not make one until you consult with a lawyer. |
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lilo
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Don't worry...it's a type of harrasment. They will not lose not time nor money to sue you for $4000. At least not too soon. They will call you and keep asking you to place an amount of money monthly but they will not sue you anytime sooner. In the meantime, you might wanna try some credit repair. |
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Jacy
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It wasn't a lawyer! Some credit collection companies use fraudulent techniques to try and scare you. The fact of the matter is that $4000 is not worth them suing over and if they were going to sue they would have done it a long time ago. A charged off account falls off of your credit report after 7 years, they are trying to scare you before it falls off. Charged off accounts are often sold in bulk to individuals who then try to collect from you, I would just ignore it. |
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mojo2093@sbcglobal.net
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Well I assume your credit is already bad because of this particular thing, but what I would have said is to get a personal loan and just pay off the $4,000. Or you could try to get a loan from someone you know and then at least they wouldn't sue you. Other than that I would tell the lawyers the whole situation and see what they think you should do. $350 a month does sound like a scare tactic to me. |
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FalleN AngeL
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I work on collections at work and a few people that owe us money have gone to credit counceling. It's free, they just take payments from you and disperse it to all the companies you owe. The credit card company can't take you to court if you do that. |
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*****
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Unless your boss is a lawyer, I would ask an attorney for his opinion to avoid further troubles down the road. |
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qbsakk
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Get a lawyer |
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Tapestry6
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You could call one of those debt places and talk to them. They can get creditors to back off with a promise of payment. They also get your interest rate and amount due each month lowered too. |
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stargurl_5887
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go to the bank get a loan pay them off, it will be easier to pay the bank then them because they wont charge u 350 or more a month.!!!!!!! |
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brnxbombercutie
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It is possible that is a scare tactic.
The best thing to do is contact a lawyer and explain the situation. They can offer the best advice. Plus, if the credit card company does decide to pursue the lawsuit, you will need a lawyer.
Good luck. |
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night worker
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It is NOT a scare tactic. Because your stat of limitations is almost up, they are MORE likely to file suit in court so there is a judgement against you, then they will have the power to freeze your bank accounts until they get their money. Unfortunately, you spent the money, now you have to pay it back. |
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mpgodin
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Yes pay your bills maybe the payment is high but heck I pay my bills and no one bother me ! It is your only way |
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duoak
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You should hire your own lawyer. The lawyer can probably negotiate and lower the amount you owe a bit. Otherwise, you incurred that debt and you have to pay it. If you don't pay it, the credit card company will probably be able to garnish your wages. |
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Chickidee
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The truth is, you spent the money, got the stuff on credit, now you have to pay. Call up a credit counseling company, they might be able to help you.
As for the $350 a month, save your money to pay it instead of spending it by going into bars, buying cigarettes, and other non-necessities. |
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