topic Re: Question on settling with HSBC in Credit Cards

Question on settling with HSBC

Anonymous — Tue, 12 Jan 2010 00:02:24 GMT

I have an HSBC/Beneficial account that the original balance was $7600, with all the junk fees it is up to 9200. It was charged off about two years ago and now been with like five different collection agencies. I have been trying to settle and all the agencies end up giving like a bottom line number of around $3200.00 The current CA Allied Interstate offered me $3200.00 in December. I came back at $1500.00, but finally this month in an effort to put to bed i agreed to the $3200.00 but they said that was last month and it is now off the table. Allied said they had a meeting with Benifical last week and the lowest they do is 50% which is 4600, I am not settleing for $4600.00. Do you think if I try at the end of the month they might be more hungry to settle or will they stick to thier guns at the 4600.00? Any other options? I really need to get this behind me.

Re: Question on settling with HSBC

daisyduke — Tue, 12 Jan 2010 01:09:32 GMT

Hi NYYankees,

I think this post probably should have been in rebuilding section, I was cruising the CC forums and came across your post.

I think the first thing you need to do is find out what is exactly on all of your credit reports. Which CA is reporting on all three reports. If you have not done so already, go to annualcreditreport.com and get your credit reports. You can get them for free once a year with no charge.

What is your DOFD (that is date of first deliquency with HSBC, the first time that you missed your payment and never caught up = that is your DOFD).

Keep in mind that you need to know your SOL - if you are within the SOL, the CC company can sue you.

If you provide this basic information, there are so many good people on this forum, they can advise you of the right steps to take.

Also, one last thing - A CA doesn't tell the OC how to report. So even when you are ready to cut a deal with a CA, HSBC will still report "charge off - sold/transferred". You can however negotiate to have the CA TL removed, if they have listed it, someone probably has reported this on your credit report.

I hope this helps you.

Re: Question on settling with HSBC

DI — Tue, 12 Jan 2010 01:18:46 GMT

How old is the debt? For a balance of $7600, a settlement payout shouldn't be no more than $2500. Also, negotiate that they don't issue a 1099 for the difference as earned income. I did all of that with a car loan I cosigned for when I settled the account.

Re: Question on settling with HSBC

Anonymous — Tue, 12 Jan 2010 01:54:57 GMT

Thanks for the reply, they told they will not budge off of 4600. Here is how it reports on my CR.

Balance:

$9,255

Date Updated:

12/2009

High Balance:

$7,653

Credit Limit:

Past Due:

>$9,255<

Pay Status:

>Charged Off as Bad Debt<

Account Type:

Line of Credit Account

Responsibility:

Individual Account

Date Opened:

02/2007

Date Closed:

03/2009

Loan Type: Line of Credit

Remark:

>Profit and loss writeoff<

Re: Question on settling with HSBC

DI — Tue, 12 Jan 2010 02:05:15 GMT

@Anonymous wrote:
Thanks for the reply, they told they will not budge off of 4600. Here is how it reports on my CR.

Balance:
$9,255
Date Updated:
12/2009
High Balance:
$7,653
Credit Limit:
$0
Past Due:
>$9,255<
Pay Status:
>Charged Off as Bad Debt<
Account Type:
Line of Credit Account
Responsibility:
Individual Account
Date Opened:
02/2007
Date Closed:
03/2009
Loan Type: Line of Credit
Remark:
>Profit and loss writeoff<

The account is still very young. You missed out on the lowest offer. It will take a couple of more years to get the settlement you offered to that level.

Re: Question on settling with HSBC

Anonymous — Tue, 12 Jan 2010 07:14:16 GMT

@DI wrote:
How old is the debt? For a balance of $7600, a settlement payout shouldn't be no more than $2500. Also, negotiate that they don't issue a 1099 for the difference as earned income. I did all of that with a car loan I cosigned for when I settled the account.

The account is no longer with the OC. Only the OC can issue a 1099 on a settled debt. CA/JDB cannot do so.

Re: Question on settling with HSBC

Anonymous — Tue, 12 Jan 2010 07:34:19 GMT

^ Good to know!