I was offered 55% yesterday and am holding out for 35%

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I settled for 65% on $40k. I was less then 30 days late on 3 cards and wasen't even late on one card. I know I could do better, but it was a figure I could live with, and I am in a hurry to get things straightend out. Not to mention Chase was the fairest of all the compaines I have had thru the years. If I could just get those sharks at Advanta and BOA to deal a little on the 7k I owe each I would be all set. But both were quick to screw me and both don't want to deal at all.

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Shawna
How late is your account? Just trying to get ideas.
Thanks!

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My account with Chase went to their Pre-Litigation dept. They said they could settle the most of 70% but that's it. I told them I don't have the funds for that. My balance is $3,600 right now. I offered them $1,000 because that was what I could borrow from my family. They declined. Will they sue me? What should I do? I am only 39 days past due and it went to their pre-litigation dept already. BTW I settled with 2 of my other accounts with them already, one for 30% full balance and the other for 36% in 4 payments. Could the reason it went to pre-litigation so quickly because of the other two accounts?

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Don't fall for their lingo. Collectors and credit card companies use words like pre-litigation department to make you think you have to settle immediately. Time is always on your side and you can always settle even if they sue. I just received an offer from a collector at 30% on a 2-3 year old Chase debt. I doubt they ever sue me. I am still waiting for them to validate.

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Chase pre-litigation is a very real department.
Yes, there is a very real chance that your account will next be referred to either Chase legal or local counsel, who will then attempt to collect with authorization to file suit as part of those attempts.

I doubt the account was flagged for pre-lit because of the other settlements.


mileage may vary

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39 days is too early for them to settle. They just scare you to accept 70%. Wait until it passes 100 days. They will bend down to a significant number. It's unlikely that they sue you for jsut a small balance. Throwing good money after the bad! They scared me before but settled for 36% for all 6 CC after 95 days late.

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We received a call day 36 with an offer to settle our account at 80% or 20% off. Balance is approx $9300. I thought this was a start in the right direction.....Four days later we received a letter demanding the entire balance within 15 days or they would sue...Made no mention of pre-lit dept. Approx 4 days later received another call essentially saying the same thing, adding in the logistics, Sheriff to serve summons, Judgment wage garnish etc...I wonder if this has anything to do with the fact that they hold our mortgage....My associate settled his 2 chase accounts within the past 2 months...2 accounts Balances 20K and 19K, they agreed to 4 payments of 1K, or 20% on each...I'll update whether or not they are bluffing...

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Again, I have no doubt that they have formed some department called pre-litigation but they did that as a primarily as a scare tactic. It is similar to other collection agencies calling and saying the account is in pre-litigation or using phrases like cut-off date. Of course there is always a chance of being sued if you owe the money but it is highly unlikely this early in the game. On top of that if you do get sued I suspect you could settle for better than the 70% at the court house. If you sign a deal early I would hold out for a minimum 50% and shoot for 30% of the original balance.

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Dollars,

It is as you describe, a scare tactic. It is also a very real department where accounts land before being transferred to Chase legal.

Chase legal will file suit at 90 days.

I agree that being sued is just another opportunity to settle and I also support your numbers.

People react very differently when stressed. The fact with any settlement is that the math has to work. You have to hit a number that you can fund and that the creditor will take. That is sometimes easier said than done.

If the math does not support the settlement, it doesn't get done. If you get sued and the numbers still do not work, you will have to mitigate the damage from there.


Mileage may vary

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Chase called today and I got up the nerve to talk to them. They were very nice. I explained that I lost my job in August and haven't yet been successful in finding employment. They said they had several offers for me to repay, and that I will be charging off soon (the rep confirmed they will charge off this account on November 30). I said that my mother offered to loan me some money for settlements, and they said they do have a settlement offer for me.

My balance (with bloated interest & late fees, etc.) is 1500.00, but they offered me 1100.00 in 4 payments. I called back and explained I could not afford that and then offered them $450.00. They said they will submit my offer and call back today or tomorrow if they accept or not. They once again reminded me "how great" their offer was, in 4 easy payments, but I reminded them that I have 14 other cards and this is all I can get. They read me some terms, and I inquired about selling it off to a collection agency, and they said they wouldn't do that. They won't send me a letter unless and until my offer is accepted.

This is my first offer and my first attempt at negotiating. I was shaking the whole time and extremely nervous. I know that it's a relatively low balance, but again, there are 14 other cards to consider. I am hopeful we can come to an agreement, as it is close to the end of the month. This has surely boosted my confidence in talking with the OC's, but I know the others may be more difficult. I just feel really great about this right now!!!

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