Would rather pay Chase than the CA!

They can assign your account to collections, and it is legal for them to tell you to contact the CA about the account even though they own it. In other words, nothing can force them to recall the account from the CA.

However you can refuse to deal with the CA, send a C&D to them and they will get the hint. You might try to get a supervisor or the recovery department at Chase, and tell them you will C&D any CA they send the account to. See what they say.

The opposite is true too though... if they absolutely will not deal with you directly anymore, and you refuse to deal with their assigned agent, they may send it out for a lawsuit. Or else they may sell off the account sooner or later.

Thanks for answering. So I can tell them I won't deal with any CA and maybe they'll go for it, or maybe I'll end up with a lawsuit. Yikes.

After my first post, I poked around the internet to see if anyone else had been successful in getting Chase to pull back an account. It doesn't look promising. Funny thing is, nobody ever says why Chase won't do it. Maybe they didn't ask or maybe Chase wouldn't tell them?

I called Chase twice this morning to see if they could get my account back from GCS. Both men said once it's in the collection agencies hands, even though Chase still owns my debt, it's Chase's policy not to get the account back. I asked why. They said that's just the way it is.

I was never given the chance to talk to anyone who had any authority. When I asked to speak to a supervisor, at first they said the supervisor would tell me the same thing. When I asked to speak to a supervisor anyway, they "looked around the room" and "didn't see any supervisors".

When I said I wouldn't pay anyone but Chase, both said I could trust GCS with my money because they are working on Chase's behalf. I said how do I know GCS won't tack on extra fees and they said that they will only ask for the amount I owe Chase. I didn't bother saying anything about a C&D letter because, obviously, the reps I talked to have no authority to do anything.

One customer rep said that at this point it was a matter of settling the account. So does that mean I can negotiate with GCS on paying just a percentage of the debt as a settlement? And if so, what percentage do I say I'm able to pay since it's not like they bought my debt from Chase for pennies on the dollar. Chase still owns the debt. The CA is just trying to get their commission.

The Chase rep I talked to yesterday said the only way Chase will pull back my account is if I have a debt management company write up a proposal and send it to Chase and, if Chase agrees, they'll take back the account from the CA. What I don't understand is, I'm willing to pay to settle the account, what's the point of a middle man, i.e. the debt management company when I say I'm willing to settle with Chase directly?

Any advice on what should I do now? Should I send a DV even though 3 customer reps have confirmed GCS is working on Chase's behalf to collect the money?

Does Chase outsource their customer service to India? I called 2 differend phone numbers, got 2 different people both with Indian accents. These are the only 2 numbers I could find to call - 800-238-3267 and 800-432-3117

Call again and ask for a supervisor right off. Don't even bother with the customer rep who answers the phone.

Another option is to send a letter to Chase directly with an offer to settle and see how that works. Offer a settlement, payment plan or whatever and see if they bite. I've seen a letter in the DIY section that includes a payment with the offer.

Chase won't refuse a payment. You can still send payments to them and they will credit your account. It is just the "acceptable arrangements" part that they leave to the CA after it's sent out.

You ask why? And here's my answer:
Usually the contingent fee arrangements between OC and CA would require Chase to pay GCS a % of any payments collected, even if the payment is made directly to Chase. If you pay Chase directly, then Chase has to let GCS know and pay them their %. To Chase, if they have to pay GCS a % regardless, may as well let GCS work a little for it.

A few years ago I had a chargeoff account with Chase, and like you, they wouldn't budge and kept referring me to the CA (Phillips & Cohen). I ended up calling the CA, who were actually pretty cordial with me. Their balance was the same as Chase's balance, so they weren't trying to tack on any extra charges. I ended up settling with the CA for 75%, which is about where I wanted to be at. I got it in writing beforehand that they would agree to accept X.XX as settlement in full on the account; and after I paid they also gave me a letter stating the account was satisfied and the remaining balance cancelled.

So personally, I don't see the big deal in working with GCS. Unless the are just flat out refusing to settle...

I haven't talked to GCS yet, but I wish I knew how much I owe because, at this point, with all the late fees, I'm not exactly sure. And none of the customer reps at Chase would tell me. They said I would have to get that information from the GCS. They could tack on all extra fees they want and I would have no idea.

Did you have to pay taxes on the other 25% of the debt?

By the way, thanks for your responses, DebtCruncher. I appreciate you taking the time to answer.

And thank you, 'Guest'. I'll head over to the DIY section right now and take a look.

I would send a DV to GCS first. First rule of dealing with collections...no validation, no payment!

In my situation, all that would be doing is stalling the inevitable since I've already talked to Chase 4 or 5 times and they have confirmed that GCS is collecting on their behalf.

That's the point of the DV...they need to provide you with a statement of what you owe. You said in your post above that "you wish you knew how much you owed!" Make them prove it. Until they validate, they can't continue to collect...this includes reporting on your CR, phone calls and moving to sue you.

IMHO, I would send the DV first. It buys you some relief (and time)!

allother2 -

I knew from the last statement Chase sent me. The balance never changed from my last statement and what the CA was trying to collect, so that's how I knew they weren't tacking on extra charges.

In your case, you should DV it - ask them for a calculation of your balance owed and a ledger history of all credits and charges.

Chase did sent me a 1099C for the 25% settled portion. I had to report it as misc income, and ended up costing me about $260 extra I had to pay in taxes that year.

Usually you will receive a 1099C if the difference between what you owed and settled for is $600 or more (IRS requirement).