Amex Charge-off Repayment Process for PIF Question

[lexi_7170]

Can anyone share their experience with contacting American Express to settle a charge-off? Is an initial payment required over the phone?

I worked dead end jobs for years which resultantly caused my income to fluctuate. In 2017 I was accepted to nursing school and working part time while living off student loans. I defaulted on my Amex for $3939 in May 2017. In January 2018 I lost my job and my school expenses made it impossible to even contemplate paying that debt back.

Fast forward to 2021, I am looking to rebuild my credit and possibly reinstate my relationship with American Express (if possible). I am now employed and financially in a better position than I was 4 years ago.

[Anonymous]

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@lexi_7170 wrote:

Can anyone share their experience with contacting American Express to settle a charge-off? Is an initial payment required over the phone?

I worked dead end jobs for years which resultantly caused my income to fluctuate. In 2017 I was accepted to nursing school and working part time while living off student loans. I defaulted on my Amex for $3939 in May 2017. In January 2018 I lost my job and my school expenses made it impossible to even contemplate paying that debt back.

Fast forward to 2021, I am looking to rebuild my credit and possibly reinstate my relationship with American Express (if possible). I am now employed and financially in a better position than I was 4 years ago.

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I honestly would not call unless you can make a payment. Acknowledging the debt may reset the SOL to be sued, if it has already expired. I would only fish around when you are ready to pay.

I believe to get in the Optima program or to be considered for cards in the future, it all will have to be paid back entirely (whether a lump sum or payments) - no settling.

We will wait for others to chime in and there are many threads regarding Amex COs if you want to do a quick search in the meantine.

Good luck!

[OmarGB9]

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@lexi_7170 wrote:

Can anyone share their experience with contacting American Express to settle a charge-off? Is an initial payment required over the phone?

I worked dead end jobs for years which resultantly caused my income to fluctuate. In 2017 I was accepted to nursing school and working part time while living off student loans. I defaulted on my Amex for $3939 in May 2017. In January 2018 I lost my job and my school expenses made it impossible to even contemplate paying that debt back.

Fast forward to 2021, I am looking to rebuild my credit and possibly reinstate my relationship with American Express (if possible). I am now employed and financially in a better position than I was 4 years ago.

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I believe your best bet is to contact them and see what they have to offer/negotiate. They may even offer you the Optima card after payment (in full I believe), which is your way back in with them.

Just beware, if the SOL in your state has expired, contacting them and admitting to the debt/making a payment/setting up a payment arrangement can reset the SOL.

[lexi_7170]

I'm hesitant to just call them up and see what they have to say without a clear idea of the process once I agree to pay. I know by calling I'm acknowledging the debt which isn't really my concern. I would like to eventually establish a relationship with them again and the only way to do that is PIF. 

If anyone can answer these specific questions I would appreciate it:

1) After agreeing to a PIF payment plan how is the payment process set up? Is an initial payment required via routing and account number or by debit card? 

2) Do I make a payment after agreeing to a PIF payment plan once I receive a letter from Amex regarding the terms? 

[lexi_7170]

Thank you for your reply. The Amex c/o falls off in 3 years. I want to establish a relationship eventually with Amex and PIF is the only way to get off the black list.