Please help with a collection issue

Anonymous · ‎10-21-2010

I have an account with HFC that is behind. I live in MD. It is current. It is mine. I owe about $6,000.00.

I got behind on my payments. I contacted HFC told them my issue asked if they would work with me. HFC told me to send over a copy of my bills, pay stub, bank statement etc. HFC said it would take about two weeks to review . They then told me I was denied. They lowered my credit limit amt which put me over and raised my monthly percent.

I then contacted my bank and set up a debt management plan and have made payments to my creditors and on time. All of the creditors agreeded to accept the DMP BUT HFC.

In the mean time two payments of $100.00 were made to HFC thru the debt management plan (before I found out they would not accept the dmp) and they sent my account to a law office. My DMP with my permission contacted the law office and sent a proposal to them. The law office denied the proposal and wanted a large lump sum. I don't have a large lump sum. I don't have any money to put down but I can make $100 a month payment.

The law office also told me that HFC has strict guidelines as to what arrangements they would accept. Now when I called HFC they told me that the account went to a law office and they are no longer handling the account. I sent a dv letter within the 30 days to the law office when I first got the letter. they responed. I also wrote them certified and told them to contact me in writing. I then got a call from HFC wanting to come to a settlement on this account.

So long story short I don't trust either one of them. I do want to pay off my bills but I am not sure what to do so I don't get taken advantage of. Should I just deal with HFC? I can't settle so what is the best way to come to a payment agreement with HFC?

Anonymous · ‎10-21-2010

@Anonymous wrote:

I have an account with HFC that is behind. I live in MD. It is current. It is mine. I owe about $6,000.00.

I got behind on my payments. I contacted HFC told them my issue asked if they would work with me. HFC told me to send over a copy of my bills, pay stub, bank statement etc. HFC said it would take about two weeks to review . They then told me I was denied. They lowered my credit limit amt which put me over and raised my monthly percent.

I then contacted my bank and set up a debt management plan and have made payments to my creditors and on time. All of the creditors agreeded to accept the DMP BUT HFC.

In the mean time two payments of $100.00 were made to HFC thru the debt management plan (before I found out they would not accept the dmp) and they sent my account to a law office. My DMP with my permission contacted the law office and sent a proposal to them. The law office denied the proposal and wanted a large lump sum. I don't have a large lump sum. I don't have any money to put down but I can make $100 a month payment.

The law office also told me that HFC has strict guidelines as to what arrangements they would accept. Now when I called HFC they told me that the account went to a law office and they are no longer handling the account. I sent a dv letter within the 30 days to the law office when I first got the letter. they responed. I also wrote them certified and told them to contact me in writing. I then got a call from HFC wanting to come to a settlement on this account.

So long story short I don't trust either one of them. I do want to pay off my bills but I am not sure what to do so I don't get taken advantage of. Should I just deal with HFC? I can't settle so what is the best way to come to a payment agreement with HFC?

Hi kldestefano!

I tried Googling HFC, and they only company that I came up with is a Household Finance Company, a subsidiary of HSBC-- is that who the account is with? What type of debt is this (a credit card?). How much is the monthly payment?

The letter that came from the lawyer for HFC-- did it indicate that this letter was a communication from a debt collector?

Anonymous · ‎10-21-2010

HI,

Yes, they have changed the name a few times. It's also known as beneficial. I never had a credit card it's one of those accounts you use a check issued by them.

I am not sure anymore what the monthly payment is. I think it was about $150.

Yes the letter from the law office did say it's a communication from a debt collector.

THanks

Anonymous · ‎10-21-2010

Also, as of today the account does not show as a collection on my credit report by the law office. If shows late by HFC.

Anonymous · ‎10-21-2010

Just noticed credit report says $715 past due and mo payment $117.

Anonymous · ‎10-21-2010

Because you're able to make payments of $100/month, I'd suggest that you contact the HSBC (the parent company) corporate HQ, explain your problem & your willingness to work out a payment plan. Explain that Beneficial (or who ever they are) will not work with you, in spite of the fact that you're trying to pay. You can explain your hardship that led to your delinquency, and how the resulting AA has made it impossible to catch up. Make it very clear that you want to pay your debt, but that you can only afford $100 payments at this time.

I'd Google the SEC filing for HSBC and get the contact information for their Senior Leadership, and address a certified letter directly to their attention. Then, call their corporate HQ, politely of course, because your're making an earnest effort to get this resolved.

Anonymous · ‎10-21-2010

Ok, I will give that a try. Thank you for your help.

Anonymous · ‎10-26-2010

Hi,

I typed the letter and got ready to send and decided to check the court records online. The law office filed a claim with the court on Oct 14th. I haven't been served yet.