Dunning notice....now what?

[stormidai]

Long story short, had to quit paying on credit cards in April and May of this year. We are not financially in a position to pay anything on any of them at this time, but will be able to do settlements and/or PIF on them when we get our tax return. I've gotten a few of the "going to charge-off letters" on a few accounts, and today I receive dunning notices for two of them (both Chase, through United Collections, one for me and one for hubby). The letters state that they are collecting for Chase and list amounts, along with the standard 30 day dunning notice speak. So....what now? These are definitely within SOL, and I really don't want to do anything that will rush them towards a lawsuit. Is a DV still an appropriate step? Will requesting only mail contact be appropriate as well? I'm really new to all of this and don't wanna make things worse than they already are :/

[guiness56]

Unless you can PIF if they validate, I would not send a DV.  They may turn around a sue you.

There would be no need to send a C&D for mail only contact.  A DV puts in place a cease collection bar.  Meaning they cannot contact you in anyway about the debt.

Since they are only collecting on behalf of the OC, can you contact the OC and work out some sort of agreement to keep them from bringing suit?

[fishbjc]

What sort of amounts are you talking about?  If they're huge, they may rush to a lawsuit or maybe not.  My sister was sued by Capital One for $1200.  I have one remaining for $2k and haven't heard a peep from them.  It's a YMMV type of thing.

When do you plan on filing the tax returns?  I am hoping that they don't hit your accounts with collection status....that's a huge drop.  There may still be time.  I understand...when you don't have the cash on hand, you just don't have it. 

[RobertEG]

There are certainly different ways to go.

In my opinion, my primary concern at this point would be the liklihood of the OC doing a charge-off.

Once they do that and report it, you will have a CO that will remain for 7 years plus 180 days from the DOFD on the OC account.

I would contact the OC and attempt to work out an agreed payment plan.  If they agree, the debt cannot be considered as having become "uncollectible," thus preventing a CO as long as you abide by your payment agreement.

As for a DV, I would send one to the debt collector.  That will at least buy a little time against reporting of their collection, as the cease collection bar that it imposes will prevent their reporting until such time as they have provided debt verification.  They could quickly respond to the DV, and then report, but at least you get a temporary bar.

The OC still owns the debt, so the debt collector cant sue.  By contacting the OC and making an offer to set up a payment plan, you may forstall a CO, and they may also terminate the authority of the debt collector to continue separate collection efforts as long as you are making agreed payments.

[stormidai]

After late fees & overlimit fees, one card is at approx. $2100 and the other at approx. $3200. We have spoken to Chase before and while they were willing to offer settlement amounts, the payments still weren't within what we're able to pay right now. We *have* spoken to a bankruptcy attorney, who told us that we would be pretty much wasting our time and money filing for bankruptcy...that either way our credit isn't great, but that if we can make settlements/PIF/PFD offers, we'll be more likely to recover our credit scores than if we were to file bankcruptcy, even if there are CO's on the account, because we could possibly GW that particular tradeline off once they are paid. He also said that even if we ARE sued, we are currently "judgement proof"...essentially because DH is on unemployment (which can't be garnished in our state) and I have only been able to find part time work (and I make enough to fall under garnishment minimum guidelines and don't make enough to be garnished)...and that when DH goes back to school in the spring, his pell grants and student loans cannot be garnished either...so that if they do sue, they may be able to get a judgement, but they won't be able to have wages or anything garnished until our income increases (and honestly with the job market in our area, I don't see that happening any time soon).

So...filing a DV will place a cease collection bar for the moment. I'm fine communicating with them by mail, but quite honestly, I'm sick of the phone ringing all the time. Yeah yeah, I know we got ourselves in this position...and that the calls are part of it...but I would LOVE to not have to hear that stinkin' phone ring, or at least not as much. Will simply requesting they only do contact by mail hurt anything, like make them more likely to sue, or anything like that?

[RobertEG]

Youu can always, at any time, send a debt collector a cease communication letter under FDCPA 605(c).

That prevents any further communications with you, period.

It is not as restrictive as a total cease collection bar imposed by a timely DV, but unlike a DV,  it is permanent, and will end their calls.