Credit Rebuilding - Settling accounts

[Anonymous]

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@Anonymous wrote:

I am trying to work with the collection agency assigned for citi bank. They are called as "Global credit collection & corp".  I entered into a payment plan with them. Now when i ask for one time settlement. They are not willing to give a suitable offer. Now, if i pay month to month, it will take me 33 more months. Is it because i am on a payment plan month to month, they wont agree as they know they can get me to pay in full eventually? I wanted to settle it soon so that i can minimize the damage. If i default for a month, would they then come to talk to me for a arrangement? What should i do in this case?

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If you default on an agreed payment plan, you potentially reset the SOL for which you can be sued. You might not want to risk that, depending on how old this is.

"suitable offer" means many things to many people, and is generally related to the age of the account in question. What have you offered, what have they countered with, and how old is this item?

[Anonymous]

If you default, then you would be in violation of your agreement. Happened to me once and they tried to take the agreement off the table and I threatened not to ever pay them another dime. They quickly recanted and allowed me to continue on the payment plan. There is no incentive for them to settle with you for less as you have already signed up to pay them a specific amount. I cannot guarantee the same outcome for you as me, but worst case you can try and speak with a supervisor or threaten not to pay them anything else. If the SOL is passed, they have no further recourse against outside of reporting your debt.

[Anonymous]

Thanks for the reply. Total debt is 6515. I Have paid 580 in 3 months. I offered to pay 2500 in lump sum. They are asking for 4100 for a settlement. They also told that they can be flexible if i decide to pay in full. I can continue to pay the monthly 195 dollar amount and then pay whenever i have something extra towards the full balance.

Regarding the account, the account was opened in 2010. Closed on 10/2013. Probably charged off and went to collection on 03/2014. 

[Anonymous]

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@Anonymous wrote:

If you default, then you would be in violation of your agreement. Happened to me once and they tried to take the agreement off the table and I threatened not to ever pay them another dime. They quickly recanted and allowed me to continue on the payment plan. There is no incentive for them to settle with you for less as you have already signed up to pay them a specific amount. I cannot guarantee the same outcome for you as me, but worst case you can try and speak with a supervisor or threaten not to pay them anything else. If the SOL is passed, they have no further recourse against outside of reporting your debt.

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This is not universally true. Most states allow for the resetting of the SOL when an agreed upon payment plan is defaulted on. Twelve states specifically require a written and  signed agreement to be in place before a new SOL can be established by a subsequent default. There are a couple of states where the passing of SOL legally extinguishes the debt, and its illegal to even try to collect on it.

[Anonymous]

Hi NormanFH, When you get a chance, could you please reply to my post where i have given my account information? considering the balance and the dates, what would you advise?

[Anonymous]

Total debt is 6515. I Have paid 580 in 3 months. I offered to pay 2500 in lump sum. They are asking for 4100 for a settlement. They also told that they can be flexible if i decide to pay in full. I can continue to pay the monthly 195 dollar amount and then pay whenever i have something extra towards the full balance.

Regarding the account, the account was opened in 2010. Closed on 10/2013. Probably charged off and went to collection on 03/2014.

[RobertEG]

Dont default as a means to force them to negotiate new terms.

Default will subject you to civil action for default on your payment contract, with an SOL beginning as fo the date of your default.

They would be picking up the Big Stick, not you.

If you wish to renegotiate terms, it is up to both parties to agree.  Otherwise, they have you under contract.

[gdale6]

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@Anonymous wrote:

Thanks for the reply. Total debt is 6515. I Have paid 580 in 3 months. I offered to pay 2500 in lump sum. They are asking for 4100 for a settlement. They also told that they can be flexible if i decide to pay in full. I can continue to pay the monthly 195 dollar amount and then pay whenever i have something extra towards the full balance.

Regarding the account, the account was opened in 2010. Closed on 10/2013. Probably charged off and went to collection on 03/2014. 

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Continue paying towards the 4100 and make sure you have this in writing. Do not default as you may be in a state that allows reset of the SOL upon subsequent default, being it happened in 2013 it still was within SOL in most states.

Edit:  I have merged your other threads on this into this thread. Please refrain from posting multi threads on the same topic it leads to confusion by our members and it is against the TOS. I thank you for your understanding on this.

[Anonymous]

Sure. i will not default as its not an option. Now they are saying if i can pay 4100 this month, they would take that as a settlement. Considering i have paid 580 already it would be 4680 towards my 6515 debt. Its 71%. If i dont pay 4100, then i will have to keep up with my 195 and may pay part payments in the middle and pay it in full eventually.

Which option is better? If i pay in full, can i send goodwill letter to citibank? will it eventually work? or should i somehow arrange the settlement payment and take care of it this month. Since 6000 balance on a charge off credit card is reporting, most of them see it negatively and not giving good credit lines.

[gdale6]

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@Anonymous wrote:

Sure. i will not default as its not an option. Now they are saying if i can pay 4100 this month, they would take that as a settlement. Considering i have paid 580 already it would be 4680 towards my 6515 debt. Its 71%. If i dont pay 4100, then i will have to keep up with my 195 and may pay part payments in the middle and pay it in full eventually.

Which option is better? If i pay in full, can i send goodwill letter to citibank? will it eventually work? or should i somehow arrange the settlement payment and take care of it this month. Since 6000 balance on a charge off credit card is reporting, most of them see it negatively and not giving good credit lines.

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You will have to determine what is best for you. GW letters are known to work but sometimes they take time, the older the account the better chance there is in getting a GW removal.