American Express Collections question

[sas099]

I have a question. Backstory:  I defaulted on my American Express Delta Gold card for approximately $12,000. I made my last payment in 2017. I was going through a tough time. I continued to receive offers to settle through 2022. I set up a payment plan of $100 per month and have been making the payments.

I obtained an American Express card in July 2024. I now have four cards, all of which are paid in full each month. This debt is no longer on my credit report. I received a call from American Express collections a couple of days ago. They left a message about returning the call.  Do I have to settle this debt now, or can I continue making payments? Will not settling and continuing to make payments affect my relationship with American Express?

Suggestions are appreciated.

[pizzadude]

---

@sas099 wrote:

I have a question. Backstory:  I defaulted on my American Express Delta Gold card for approximately $12,000. I made my last payment in 2017. I was going through a tough time. I continued to receive offers to settle through 2022. I set up a payment plan of $100 per month and have been making the payments.

I obtained an American Express card in July 2024. I now have four cards, all of which are paid in full each month. This debt is no longer on my credit report. I received a call from American Express collections a couple of days ago. They left a message about returning the call.  Do I have to settle this debt now, or can I continue making payments? Will not settling and continuing to make payments affect my relationship with American Express?

Suggestions are appreciated.

---

You're still paying the $100 / month, correct ?   I don't know why they'd contact you but it is certainly possible they might offer you a lump settlement to clear the debt.   If so then I think it would be totally up to you if you'd rather keep the monthly payments or pay it off now. 

My gut is that either way you're fine, given that you have 4 open cards which are all presumably in good standing and paid in full as you described. 

[sas099]

I have been paying $100 a month for the past three years. I'm not sure why they're calling me.  I will return the call tomorrow. I know that if they offer a lump sum to clear the debt, I will be responsible for the difference in taxes. Either way, monthly or lump sum, it is not on my credit report. I am paying in good faith. I think many people would ignore the calls. All four cards are in good standing, and I continue to receive offers for new ones. I am unsure whether they would or could jeopardize my current relationship with Amex.

[pizzadude]

Yeah I'd for sure give them a call, maybe you could save a few thousand dollars if you can afford to pay a settlement now. 

Even if you're saving less money than that it might be worth the peace of mind to finally have it take care of.  

If they do make you an offer let us know what you decide ! 

[sas099]

Thanks for the reply. I don't need to be pressured into the settlement because it's no longer on my credit report. I'll hear what they have to say.