What to Do?!?

[Anonymous]

OK, I have a situation that has me completely confused.  I have a delinquent account with BB&T from a Mastercard I got from them years ago.  The limit on the card was $300.  When I pulled all three of my credit reports, they all show the amount due as $551 (which I am sure is the balance I owe plus other fees) with $150 past due.  I have not paid on this account since April of last year.  I am now getting calls from Regional Adjustment Bureau, Inc demanding $1136 (i'm not sure where this amount comes from). 

Should I contact BB&T to try and settle this debt, and is it possible that they would settle for less that the $551?  Over the years, I have paid them over $3600 so I feel that it would be more than fair to them if I paid them in one lump sum the $300 that was the original limit on the Mastercard.

Or should I try to settle with RAB?  I know that they are one of those company's that buys debt for pennies on the dollar, so what would be a reasonable amount for me to initially offer as a settlement?  I was thinking of no more than $230 (20% of amount they are demanding).  This is not showing up on my credit report at all.  Will it show up at some point?  Can they report this negatively?

The BB&T account is the only one showing up on my credit report.  The RAB is not.

Any advice is greatly appreciated.  I have paid of all other delinquent debt, and am working to pay of a $1700 account with Dell Financial which is a whole other thread.  It is paid on time, and I pay 3x the minimum payment, yet the balance never seems to drop more than a few dollars a month.

[Anonymous]

 How old is this delinquency - you wrote "years ago"? If it's more than 7 years old you just may be able to dispute it off of your CRAs for being too old. Also, from what you write, it appears that RAB is collecting on behalf of BB&T  (in other words, RAB desn't actually own the account - this could explain why their name is not on the tradeline in your CRs).  Contact BB&T first and see what they say about settling your account. Can't say whether they'll be willing to settle, but if they play ball, make sure that you do a PFD that includes RAB's name even though RAB is not on your CR. (BB&T is the original creditor and the original creditor has the ability to remove it's own negative tradeline and the negative tradelines of any CA trying collect on their behalf. CRA's are always notoriously behind in updating info so this will cover you in case a negative RAB tradeline appears later on your CRs.) The only probem settling with RAB is that they may not have the ability to remove BB&T's negative tradeline - you'll pay the bill but still have the negative mark on your CR until the 7 years is up. (From the DOFD).

Hope this helps & good luck

[Anonymous]

Thanks Lowlife.  I appreciate the helpful info in your reply! 

 I see what you mean about it looking like the account had been delinquent for several years.  Actually, the card account was opened 12 years ago with BB&T, 9yrs ago I had medical issues and could not make payments for a few months so over-the-limit fees escalated out of control.  I made payments every month, and paid larger chunks of it when I received tax refunds. Starting in 2004, I set up payments of $25 a month drafted out of my checking account.  I cancelled the auto draft in April of 2007 because the balance never went down (stupid move on my part I know).  So the account is a fairly new delinquency.

[Anonymous]

You're welcome!

If you've been paying your bill by autodraft every month, that actually should be helping your score (regular on time payments). If your delinquency is new, companies would still prefer to negotiate with you directly than to go to collections or to deal with a third party "debt counselor". If they think you're going file bankruptcy or something they know they may not get any money at all.  You might try calling them and letting them know that you are having a difficult time and really want to work it out with them. You might try asking them to settle for a total amount $551 or whatever you can pay, with NO INTEREST or 1% interest, to be paid off by regular monthly payments of 5% of the balance (roughly $27 which is what you've been paying anyway) that they can auto draft. I had a payment plan like this with discover card - and I saw the balance go down by a small amount every month - but it took some time and committment on my part. You might also try telling them that you're just trying to do the best that you can and request that that they'll remove their negative marks (late payments and overdue amounts) on your CRs after you make a year of on time payments on your new plan.  After 12 years of being a customer, you should at least try to get the benefits of having a 12 year old CC acount in good standing - and you never know what you can get unless you ask. The worst that can happen is they say "no".  Be honest and firm but don't let them bully you and make sure to get everything in writing.

Hope it works out!

Message Edited by Lowlife on 07-30-2007 01:29 PM