Credit Card Settlement Offer

iVillage Member
Registered: 12-21-2004
Credit Card Settlement Offer
6
Sun, 01-15-2006 - 11:21am
As I have posted so many times before - I had to file BK in October but my husband couldn't - he has had all of his credit cards put as charged off - we received a notice today from a collection agency in Houston, TX on behalf of Discover offering us a settlement of $2,688.48 due by 1-23-06 (the amount they say we owe is $4,136.13 - I guess that includes all the late fees and interest). There is no way that we can come up with even $200.00 much less $2,688.48. We can't even pay the light bill or phone bill or purchase gas. Should we contact the collection agency? If so should we do it in writing - because I sure don't want them to trace anyone else's phone number and start bothering them and we don't have our own phone. Also what would really be the point in even contacting them if we don't have anything to offer. I kind of wish that my husband could just sign up with CCC - but do they even help with cards that are already turned over? And the last time we tried to do CCC they said we didn't make enough money - that was one of the reasons I had to file BK. I guess this isn't even making sense and I am going on and on and on....but all of this mess is worrying me to death --- and most people have some sort of relief (even if it isn't the right kind) after filing BK - but I don't have any at all because of all these things in his name and the fact that the monthly bills are so far behind (utilities and all). We are so afraid they are going to repossess his vehicle also because it is two months behind. I just want to cry.
iVillage Member
Registered: 07-27-2005
Sun, 01-15-2006 - 1:51pm

Oh my goodness, this is so deja vue for me. We were in a very similiar situation 9 years ago. It's so stressful, I totally feel your pain, go ahead and cry, it might help release some of your stress.

If it were me, I would just concentrate on the bills you need to pay to live, once your able to do that then worry about the credit. I made the mistake of putting creditors 1st and we ended up losing our phone, cell phone, cable (I know not a necessity), our only vehicle was repossessed and 2 days shy of losing power. I finally figured it out that we need to take care of our personal neccesities before we could take care of our bad credit.

Next I would make sure you only contact creditors in writing, not only for your documentation but you also don't want them hounding others. I would send a letter asking for verification from them that this is actually your debt. You don't want to pay anything to them until they can show you that. Once that's done, I would let them know how much you can pay and leave it at that. NEVER, let them deterimine your payments.

Take a deep breath!
Cristin

iVillage Member
Registered: 03-27-2003
Sun, 01-15-2006 - 8:21pm
I totally feel your pain. Discover has also given us the option of a settlement. It must be pay your Discover bill in full or else month. We owe about 2400. and they will accept 1800. by the end of January. If we don't pay they will put a judgment on our account. I don't know which is worse a judgment or a settlement on our account. In any case just so that you know that you are not alone. I'm in the same boat.
iVillage Member
Registered: 12-21-2004
Sun, 01-15-2006 - 9:34pm
When you say put a judgement on your account - do you mean on the credit card account, on your bank account or what? Will they notify you in advance that the judgement is being placed? The reason I'm asking is that my husband's name is still on my checking account (I've posted about that before also) and I have stopped direct deposit of my check into the account - he doesn't have direct deposit anyway - but the bank told me that when I found out that they were going to try and get money out of the checking account to come and withdraw it all the day before. They said the freeze on the account would only be for that one day - and they would have to get another judgement to get it another day...I sure pray that they know what they were talking about - of course I did go in and sit down with the bank and they explained all of this to me. I was actually going to open up a new account with only my name on it - and they would have benefited by getting two different service charges - but since I've had the account for 15 or so years and didn't add my husbands name until about 5 years ago and really didnt' want to have to get new debit card and set up all new online payments and all - they said if they were me they would just leave it like it was.
iVillage Member
Registered: 05-09-2005
Mon, 01-16-2006 - 2:08am
Hi,
I don't know if I really believe your bank. Once we had a lien put on our account by the IRS - I honestly didn't know about it until I went to get $$ out of the bank and there was no $$$$$$$$$!!!! No body from the bank gave me any warning. So -------- I really would get another account set up and fast.
Megan
iVillage Member
Registered: 07-11-2001
Mon, 01-16-2006 - 10:15am

Gal -

Please read my new long-ish post that I just had on your previous thread.

This collections company is not working on behalf of Discover. They are a company who bought this debt for pennies on the dollar from Discover. Do not pay them a penny. They are bullying you in the hopes you will pay.

Discover will not take you to court because any judge would laugh them out. They chose to give you an unsecured loan, they took that risk. They lost on that risk.

Beach

iVillage Member
Registered: 03-27-2003
Mon, 01-16-2006 - 8:54pm
The judgment would be on my credit report and I believe that they could go after my paycheck (a portion of it). You will receive a certified letter if they are going to do this.