How should I handle final AMEX payment?

iVillage Member
Registered: 07-15-2003
How should I handle final AMEX payment?
2
Fri, 02-12-2010 - 3:22pm

Before I started regularly reading and posting on debt support messageboards I was an uninformed irresponsible 20-something that didn't pay her bills. My American Express credit card went into collections a few years ago. I chose to bury my head in the sand and ignore the notices that terrified me. I think I got one or two letters from a lawyer and/or collector RE: my AMEX bill. However, I also still continued to receive monthly statements from American Express as well. At some point American Express closed my account.


In March 2008 I agressively began learning about $ and credit, budgeting, and began aggressively paying off my debt (several CC's and student loans). Because I still received statements from AMEX I began sending them payments monthly. My payments were always accurated portrayed in the next statement I received, my credit score improved, and AMEX eventually began sending my offers to re-open my account (I ignored those just like I used to ignore the bills). HOWEVER. All along I have ignored this line of text in my Amex statements: "This statement is for information purposes only. This is not a bill. Please contact your collections agency for account information. Disregard the minimum due amount, your account is in default and the balance is due in full."


So now I am down to a balance that I can pay off this month in full and be done with American Express forever. But what's the best thing to do? Should I mail my last payment to AMEX as I've been doing and be done, or do I need to track down this "collections agency" and send it to them? I have no idea who that is and I'm very wary of sending money to some unknown agency. On my credit report, which I check regularly Amex is shown as closed, not as in default. Do I pay AMEX or do I pay some yet-to-be-known 'collections agent'? Help! I want to do the right thing and cross Amex off my debt list for good!



 


Daisypath Anniversary Years Ticker

iVillage Member
Registered: 10-01-2008
Fri, 02-12-2010 - 4:04pm

If it were me, I'd call the phone number on the statement and ask for customer service and explain to them what you have been doing.

Norma


"Patience is the best remedy for every trouble"- Plautus


iVillage Member
Registered: 02-11-2010
Fri, 02-12-2010 - 7:51pm

I'm terrible with debt but I used to work for a major credit card company and I can tell you that if you're payments are being accurately reflected on the statements that you get every month then you're fine and should have no problem sending in the final payment. I'd just be sure to keep the final statement show the final credit and the ZERO balance.


The fact that it's showing as "paid as agreed" on your CBR is also a good thing.


If it really bothers you, call AMEX and asked to speak to the charge off department. The message on the statement reflects that they chalked you up as a loss years ago. What happens is that most Credit Card companies will outsource collection on a charged off