chase hardship program - why they deny?

We owe Chase $19k on one card. We just paid off a smaller Chase card with our tax refund ($1006). Our min payments on the big one are $386/mo. We are currently paying out $2000/mo in minimums on a dozen cards.

Although we are in the beginning stages of debt settlement (we're only a few days late on one card so far), we were hoping to hold off on the big one for a few months so we could try settlement on it last. Hubby just called to speak to them about a hardship program and they flat refused when they found out what we made vs what we owe. What gives???

It seems they would want to work with us so they would continue to get paid! They wouldn't even discuss it further when they had the information they needed. All they said was that we could work with Nova Debt if we wanted to.

Any advice? Please???

there is no risk for the creditors yet...after 90 days then the temporary hardship errors will come if not before...good luck

Thank you for your reply. I think you meant hardship "offers"... and that makes total sense. I'll just wait on them now. Thank you again!

I don't know why they don't just work with us, ya know? It seems like it would be in their best interest if they thought we were trying to stay current with them. Oh well, now they get nothing.

yes...offers...sorry!
same thing happened to me...I had to make a decision....hardship offers or settlement. Citi offered 0% for 60 months after 90 days...I took it....BOA settled 35% at 1 day before charge-off, same with Discover....Advanta offered 40% at 120 days....

best of luck to you...
if you already have a nice home and good car....what's the worse thing that could happen....sued....sued for what...most people have lost all equity in their home.

Congratulations on your settlements! It gives me hope. We have a long road ahead yet.

I hear you about the home equity. We just found out that the value of our home decreased by $8k from last year to now.

Still...I worry about getting taken to court, esp by the big Chase card we owe. I guess we'll just cross that bridge when we get to it.

i just had the same prob w/chase. they offered me 6% first and then i got cut off. when i called back, they started taking all of my info down of what i pay and what i owe etc and said my income to expense ratio was too high and they couldn't help me anymore and that i had to go to a consolidation firm. i just told them they weren't getting another penny out of me, and they didn't seem to care

That is exactly what happened to us just today!Â* As soon as they found out how much (or should I say how "little") we are making now, they wouldn't even discuss a hardship program.Â* We have stopped paying on this card (30 days late) since my original post.
They tried to set us up with a consolidation program, but we're not going that route.Â* I guess they will either deal with us eventually on a hardship program, settlement, or court.Â* Either way, we'll be ready.

Some creditors may offer a hardship program at usually 120+ late. Only thing that sucks is your creditÂ*score is going down the drain in between time. I would call and speak with a accountÂ*manager untill they change their mind.Â*Best of luck to you butterfly!

Good luck to those working with Chase!Â* I have a 22% interest rate.Â* I have no options to lower my interest rate.Â* I can enter into the hardship program (maybe) and they will lower my monthly min.Â* payments.Â* Guess what that does for me?Â* The interest rate stays the same, my account freezes, and in the long run...Â* I WILL END UP OWING MORE THAN I DO NOW!Â* Thanks Chase.Â* I ordered a Citi card with 0% balance transfer for 6 months.Â* I will cancel my Chase card as soon as I get it all switched over!Â* hmph.Â* I showed them, right?Â* lol
We are finding the same is happening with people trying to modify their mortgage loans through the bank.Â* If you need help with this, feel free to contact me!

Hi Butterfly;
You definitely need to wait a bit longer for hardship offers. When you get to some of your other creditors (unfortunately now Chase has all of your info documented so they will be tricky) keep in mind that they CANNOT verify your income. They can see all of your debt, but not income on your credit report. Ultimately the best hardship and settlement offers are given to people whose expenses exceeds their income. It may not be the most "ethical" way to go about it, but I would seriously consider "downplaying" your income. At this point in time creditors have not and are not asking for proof of income. I suppose they could in the future but it would create a lot of extra paperwork for them so it is doubtful. They need to see that your cost of living exceeds your income to want to really offer the best hardship. Some things that they can't see on your credit report which should be mentioned when discussing your cost of living...transportation costs to get to work, daycare, medical expenses, and anything that is a necessity that they would not see on your credit report but you want them to consider as a necessity.

Hi sameboat,Â* what do you mean by "downplay" our income exactly?Â* Do you mean we should make it seem lower than it is or that we shouldn't even talk about it??Â* I'm trying to learn here!

We did divulge our 2008 income to Chase (it was very looooow) but at the same time gave them "hope" that it was likely to pick up due to both our jobs being seasonal.Â* I don't want them to think we are so destitute that we'll never be able to work with them (settlement), but at the same time I want them to know that we are truly struggling and cutting corners as best we can and that we really don't have the money to pay them right now...because that literally is the truth.

Well I don't want to tell you to outright lie, but really the best offers...whether we are talking about hardship offers or settlement offers, go to the people who are in the negative so to speak.Â*Â*So if that means stretching the truth, I say stretch it. Â* I'm not suggesting you tell them you are penniless but you need to paint the picture that you are barely able to make ends meet...which is why you can't pay your bill.Â*Â* If your creditor thinks that your situation will turn around come spring/summer, why would they let thousands of dollars go, by offering you a low settlement or 0% interest?Â*Â* They MUST believe that you are desperate.Â* If you want to give them hope that you are trying to turn things around, tell them you are looking for a second job to supplement your income.Â* (Not a bad idea anyway.)Â*Â* "Reduced income" is the best reason for a creditor to offer a settlement.Â* One of the worst things you can do is to tell your creditor that you are saving for settlement.Â* You are just asking to be sued if you tell them that.Â* When it comes time for you to settle your best bet is to act like you have to borrow the money from someone or somewhere, because you CERTAINLY don't have it.Â* Basically you want to fly "under the radar" for as long as possible.Â* Blend in with everyone else that is having financial problems.Â* (Of course that really is the case or you wouldn't be in this mess, right?)Â* They must believe that you are a threat of walking away from the debt - that their best bet of getting any money from you is to offer a deal you can't refuse.Â*
Hope that helps.Â* I'm sure there are people out there that thinkÂ*my advice is totally unethical, but until debt settlement becomes a regular option for settling debt instead of a game that you have to play, this is what I know works.

I think, too, you have to remember....some of these CC companies are 'stuck' just like you ( because of the economy). I've read, in some of the above posts, BEFORE 'these CC company would let us do THIS. NOW...we can't do that,etc.' A friend of mine is having a similiar problem...to get on some kind of Hardship deal, with her CC company. It's really difficult for her to do right now.

Chase Bank is horrible because they have their head so far up the New York Federal Reserve Bank's ASS that they think they can do whatever they want.

JP Morgan Securities handles every trade each time the Federal Government has the Federal Reserve Bank buy and sell US Treasuries.

They think they are invincible and if you Google "Chase Bank Steals Elderly Woman's Life Savings" you will see what they are all about.

The first card I stopped paying was chase bank. Within one month they had those losers at Mann Bracken torture me and my family.

I hired an attorney and beat them at the national arbitration forum. They got nothing an my attorney obtained an award of $3400.

Everyone in this forum needs to stop paying their chase bill.

What a horrible story!!!!!!!!!! They took ALL of this woman's money?! Did she try to do anything about it?! Good for you, HOUSEOFMORGAN, for fighting back.

Morgan - GOOD work! Chase is the first one I stopped paying also. They promised to work out a payment plan with time and said in writing that I could just call if I'd ever be late. When it happened they sent me immediately to a collector who talked to me like dirt and the next step was to send me straight to a CA who was even worse. Chase is a real problem.