AMEX & GC Services?

[micachu]

I had an Amex gold card that I ran 4-5k a month (with a family member as an extra cardholder). I paid every month in full as it was a charge card, and so did my family member. Everything was good until I didn't have a job anymore and graduated from college. Me being scared to talk to Amex and feeling really hopeless (this was my first "credit card"), I ignored their efforts and I let my account get cancelled with a balance of about 4k.

Finally, after getting notices that it was going to a collections agency, I tried to talk to them but by then it had gone to GC Services. My question is, how do I know if Amex has sold my debt to them, or if they are just collecting? I'm still able to make payments on the Amex website, and on the letter it says that I can use a code to pay online until 3/17/2014.

Lastly, I had about 14,000 membership rewards points, which I was told will be lost, and my account is still cancelled and can't be reinstated... Does anyone know if this can be reversed once I pay in full?

Thanks!! This is my first credit card and it really sucks to start out on a bad note like this.

[NonSufficientFunds]

If your debt has been charged off, it is too late to save the account.  It will probably be many years before AmEx will consider giving you another card.  They never forget, but sometimes they do forgive, if you express a sincere interest in making things right.

As for the collection agency, your best course is to pay it off as soon as possible, and then ask them to delete the collection from your credit report.

The good news is that GC Services is one of the more friendly collection agencies - their customer service representatives are very well-trained professionals.  They will not harrass or threaten you, but you must work with them, and cooperate with their repayment arrangements.

If you ignore them, they will eventually sell the account to another collection agency, who will not be nearly as accomodating.

If you handle this matter in a mature and professional manner, then AmEx may reconsider issuing you a new card - and it will have your original "member since" date, although your accumulated rewards point are likely gone for good.

Best Wishes !!

[Creditaddict]

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@micachu wrote:

I had an Amex gold card that I ran 4-5k a month (with a family member as an extra cardholder). I paid every month in full as it was a charge card, and so did my family member. Everything was good until I didn't have a job anymore and graduated from college. Me being scared to talk to Amex and feeling really hopeless (this was my first "credit card"), I ignored their efforts and I let my account get cancelled with a balance of about 4k.

Finally, after getting notices that it was going to a collections agency, I tried to talk to them but by then it had gone to GC Services. My question is, how do I know if Amex has sold my debt to them, or if they are just collecting? I'm still able to make payments on the Amex website, and on the letter it says that I can use a code to pay online until 3/17/2014.

Lastly, I had about 14,000 membership rewards points, which I was told will be lost, and my account is still cancelled and can't be reinstated... Does anyone know if this can be reversed once I pay in full?

Thanks!! This is my first credit card and it really sucks to start out on a bad note like this.

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If you are still able to pay amex directly then they still have the account.

forget about those points.

doesn't sound like the account is charged off yet? i would pay it off or transfer the balance to another card if you could so you are back in good graces with amex for the future when you get your finacnes and credit squared away.

[micachu]

Just got off the phone with GC Services, and my head is swimming and I don't know what to do.

Backstory: I got an Amex gold card as my first credit/charge card, and paid the balance in full every month (2-4k). A few months ago, I couldn't make any payments beacuse I was no longer a student and looking for jobs. I'm still looking for jobs, but my AMEX account (which was cancelled a while back) has now been transferred to GC Services for collections (happened today).

I spoke on the phone with them, and they offered me 3 options for paying the ~4000$ balance on the Care program.

-Pay 1066$ now and pay 250$ a month for 11 months

-Pay 1017$ a month for 4 months

-Pay 406.60$ a month for 10 months (leaning towards this one)

I asked a ton of questions, and they said that this balance needs to be paid off right away, and that I would not be able to get my 14,000 membership rewards points back. She said I had to call her by tomorrow to get on a payment plan, and that I would have to make the payments via phone in order for them to count (and in order for them to stop calling me). She said I could pay online, but that wouldn't stop her from calling me every 7 days. It seemed very predatory to me. She wavered between intimidation and flattery ("you better pay this off as soon as you can" to "you have a perfect credit history otherwise"), and got defensive when I asked why I had to pay by phone and not online. She also said I had to get on a payment plan, THEN she would send me something in the mail to confirm. I asked about debt validation and she just asked why I needed it when AMEX already said they referred my account to collections.

Should I get on this plan? I just don't understand the difference between ignoring these people and paying off the balance online when I'd like through AMEX, and getting on this plan through GC Services. I've also seen folks on here with much higher amounts being owed, who get their card membership reinstated once they pay balance in full. Why is this option not available to me? Any help would be much appreciated.

[09Lexie]

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@micachu wrote:

Just got off the phone with GC Services, and my head is swimming and I don't know what to do.

Backstory: I got an Amex gold card as my first credit/charge card, and paid the balance in full every month (2-4k). A few months ago, I couldn't make any payments beacuse I was no longer a student and looking for jobs. I'm still looking for jobs, but my AMEX account (which was cancelled a while back) has now been transferred to GC Services for collections (happened today).

I spoke on the phone with them, and they offered me 3 options for paying the ~4000$ balance on the Care program.

-Pay 1066$ now and pay 250$ a month for 11 months

-Pay 1017$ a month for 4 months

-Pay 406.60$ a month for 10 months (leaning towards this one)

I asked a ton of questions, and they said that this balance needs to be paid off right away, and that I would not be able to get my 14,000 membership rewards points back. She said I had to call her by tomorrow to get on a payment plan, and that I would have to make the payments via phone in order for them to count (and in order for them to stop calling me). She said I could pay online, but that wouldn't stop her from calling me every 7 days. It seemed very predatory to me. She wavered between intimidation and flattery ("you better pay this off as soon as you can" to "you have a perfect credit history otherwise"), and got defensive when I asked why I had to pay by phone and not online. She also said I had to get on a payment plan, THEN she would send me something in the mail to confirm. I asked about debt validation and she just asked why I needed it when AMEX already said they referred my account to collections.

Should I get on this plan? I just don't understand the difference between ignoring these people and paying off the balance online when I'd like through AMEX, and getting on this plan through GC Services. I've also seen folks on here with much higher amounts being owed, who get their card membership reinstated once they pay balance in full. Why is this option not available to me? Any help would be much appreciated.

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Once the account is closed, you are no longer entitled to receive membership rewards. That is pretty standard with all lenders. As far as which is better, that is something you'll have to decide based on your finances. 

As as far as others getting their membership reinstated, after time they may aprove subsequent credit cards and at that time your MSD will reflect your original date. However, you will be issued a new account number and your points are not recoverable. 

[micachu]

Thanks for your response. I have seen online that if you don't apply for the Optima card after paying off your balance, you can wait a few months to be eligible for one of their regular cards.

My biggest question is, what is the difference between accepting this care program via GC services, versus paying on the AMEX website on my own terms? I can't think of any besides GC services continually calling me.