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Posted: Fri May 05, 2006 8:00 pm Subject: Credit One Ltr Beta Test????????

I recd a ltr today from Credit One Bank..formerly FNB Marin...they recd my proposal from T&C...this is what they said...Credit One's Bank Debt Mgmt Program is currently in beta test & is not available for the referenced loan at this time...What does Beta Test mean??????????????? I figured they wouldn't accept the proposal just from other posts on this site, but never heard of this excuse.

Posted: Fri May 05, 2006 8:03 pm Subject:

lol that is an original answer from a company. I'll give them a B+ for effort. Smile

I guess the best you can do is have T&C send them the payments that T&C has figured, and make sure you keep all records of payments should Credit One become a pain later on.

Posted: Fri May 05, 2006 8:05 pm Subject:

So that is just some stupid phrase they use??? How dumb I just had never heard of that before.

Posted: Fri May 05, 2006 8:08 pm Subject:

I don't know if it is or not. It could be. We had an account with them and they were a pain, so I'm not very generous towards them. Smile

Don't call yourself dumb. I've met very few people that are dumb. Most of us were just not thinking clearly as some point in time.

Posted: Fri May 05, 2006 8:09 pm Subject:

They have to be the worst regarding credit counseling. They do nothing. I have pd on this thing for 1 1/2 yrs & my balance has gone UP...all other cards have gone down significantly. It is so frustrating. I don't know what to do w/ them..Any suggestions?

Posted: Fri May 05, 2006 8:13 pm Subject:

I had the same thing happening with Providian. The account had been closed for 3 years (at my request), and the balance was going nowhere. This might not be the right decision for everyone, but last year I signed up with a debt settlement company. Last ditch effort, because I had paid Providian $3000 in 3 years, on a $2200 balance, and the balance only dropped $500. I included the Credit One and Providian accts with the debt settlement company.

Posted: Fri May 05, 2006 8:18 pm Subject:

Well how in world do you decide what would be best? set4sail you help me all the time...what would I do w/out you!!!!

What is debt consolidation? Don't they have to have something has collateral? I don't know if I want to do that.

Posted: Fri May 05, 2006 8:20 pm Subject:

Ooops sorry you said debt settlement...does that mean you have to pay an agreed upon amt all at once?

Posted: Fri May 05, 2006 9:25 pm Subject:

I sent a pm with more info. And no, you don't have to have collateral or own a home to sign up with a debt consolidation company.

Posted: Sat May 06, 2006 11:49 am Subject:

debt consolidation programs do not require any collateral from your side. They are required when you take some kind of loan. In a consolidation program, a monthly payment plan is set for you after reviewing the debt accounts. The consultant negotiates with your creditors for reducing the total balance owed. This eliminates most of the financial charges and the late payment fees. You pay to the consolidation company in easy installments and they send your payments to all your creditors.

Debt settlement is another part of the debt management program. In this program, the consultant negotiates to reduce the total debt by half. He convinces the creditors for a settled amount. While this negotiation takes place for some time, you keep sending payments to the settlement company. A separate account is opened for this purpose where you send the monthly payments. After the negotiation is accepted by both the parties, the settlement company sends the total money from your account to the creditors.

Settlement programs have a negative impact in the credit report. The creditors report to the bureaus after the accounts are paid. They usually report the accounts as "Settled". You need to insist your consultant to negotiate with the creditors and report those accounts as "Paid". This way, your credit won't get hurt negatively.

Posted: Sat May 06, 2006 1:04 pm Subject:

carl,

that is true, but people need to be aware that companies at times will also report negatively when you are in a debt consolidation program. I know because it happened to me, 9 months of late payments when we had been current on all credit accts before entering the program. debt settlement will have a much more adverse affect, but I think people should be aware that they can still face years of lower credit scores after using a credit counseling service.

Posted: Sat May 06, 2006 2:34 pm Subject:

Hi Dana

I can understand your feeling when some companies try to rip off anyone who is trying to improve his credit. A lot of research should be done before choosing any company. After all, you trust them by giving out your money. It is also important that whenever you enter into any contract, have it in writing for legal records. Do not take anything that is on a verbal note. There are many things to learn in this thread as well as in this forum for the newbie.

Posted: Sat May 06, 2006 3:33 pm Subject:

Carl,

Thank you for your response. The company I used for our debt consolidation was a very large, very well-respected credit union (which I happened to be an employee of for 5 yrs). It was not an error or fault on their end that caused the accts to be posted as delinquent for 9 months, it was the creditors that accepted the proposals and then didn't hold their end of the bargain. Yes, I did fight it at the time, as well as over time, and those accounts are just now off my credit report since it has been 7 yrs. It's a moot point now but something that I feel people should be aware of when entering ANY type of debt reorganization program (debt consolidation/ credit counseling/ debt settlement). Better to be aware of the possibilities than be surprised later.

Posted: Sat May 06, 2006 7:04 pm Subject:

If it is settled how does it show negatively on your credit report? I mean if I have never been late & then the acct is settled & marked as paid I don't understand. I am just trying to figure out what to do w/ CreditOne & Dell Financial. I have paid on these accts for 2 yrs & my balance has gone up.

Posted: Sat May 06, 2006 7:09 pm Subject:

Because to settle it usually means that you paid less than the full account balance, according to the figures of the creditor or collection agency. Sometimes the debt company can negotiate that the acct be marked differently, but the creditor doesn't always agree to that.

As I wrote you last night, it's a hard decision to make. Do lots of research, feel free to ask me any questions, then find what you feel is the best answer for you, and your situation.

Posted: Mon May 08, 2006 1:11 pm Subject:

Hi lgall

Your credit worthiness improves if the credit companies report your accounts as "Paid" or "Paid in full" or "Paid as agreed". Your future lenders will understand that you made the payments as requested by your past lenders.

Due to some financial problems, if you think of settling the accounts not paying the original balance, the creditors are likely to report it as "Settled" in your file. This will give information to others that you have been unable to pay the full balance and have paid out a settlement amount arranged between you as well as the lending company. You will have to negotiate with the credit company for not reporting it in that way right from the beginning. Try the account to be reported as "Paid" or "Paid as agreed" This will maintain your ratings.

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