Settling with AmEx
Date: Sat, 02/07/2009 - 11:11
Submitted by scarecrowwinces
on
Sat, 02/07/2009 - 11:11
Total Replies: 10
Spouse and I decided that our best option is debt settlement for our credit cards, $100K total in balances. We believe we can scrounge up about $50K so if we can get 50% on each account we can make it work.
Working also on getting a loan modification on our first mortgage, which is tentative at this point. If we get the loan modification and settle all the debt for 50% or less, then we can get our monthly income minus expense to be slightly positive going forward.
It looks like our first settlement negotiations will be with Amex, we owe them $20K and were on a hardship program until this month. When we didn't make the hardship payment, within a week they closed our account and removed us from the hardship program. The problem is that now we are showing as 150 days past due, since they are going back to the original date when we were admitted to the hardship program (September 2008).
I have been talking to them at least once a week, telling them we had to wait until we got our loan modification approved until we would know if we had any funds to work on the credit card debt.
Yesterday we finally made progress on the loan modification so when the rep called today I asked for debt settlement. The rep tried to talk me into just getting current, then tried the hardship program which I said no, we've been there. Then the rep offered 75%. I countered by saying we have 10 accounts and $100K in debt, and we have determined we can pay each creditor the same percent. But I did not give the rep a percent, I gave a dollar amount equal to about 35% of the balance.
We are too far apart at this point to settle with me at 35% and them at 75%, but I figured it was a good first step.
So I ended the call getting the rep's phone number and said my spouse and I will talk it over and get back to them.
Here is my question, since I am new to this. I have spent a lot of time researching this forum and reading books on the subject. They all say to get it in writing. But this rep says they cannot give me anything in writing.
How can I pay AmEx anything not knowing if that will be the end of it? So many numbers were thrown at me during the conversation and I was scribbling them all down, but if I do not have something in writing can't they take my money and then just keep dunning me?
Any advice appreciated :)
i have heard way to many stories of people sending the money and
i have heard way to many stories of people sending the money and then later them saying you still owe us!! Tell them no deal letter in writing or no money. end of story
amex settlement
hold on as long as you can.....they will settle for a maximum of 55% and hopefully lower. They retain Zwicker in Pennsyl for their accounts.
I am in the middle of the settlement process right now with AmEx
I am in the middle of the settlement process right now with AmEx. I owed them over $10K, they sent my account after 90 days being past due to Zwicker and Assoc. Zwicker had my account set up to go to litigation if I was not willing to settle within 10 days. We settled at $5500, payable in 3 payments. I did quite a bit of research on Zwicker and they have attorneys in every state so I was not willing to call their bluff. Good luck!
Zwicker and Amex
Indebt2 ...is spot on. Zwicker sent my account to Apothaker in NJ. They sued alright....received summons and my attorney answered. My attorney wants to see if he can have the entire case thrown out....I told him that I didn't want to risk and all or nothing scenario. He will settle instead....we're working hard to avoid litigation and get a settlement between 30-40%
good luck
Amex will always settle from my experience. What they tell you
Amex will always settle from my experience. What they tell you is never a full and final statement. They tell you they are making an exception in your case, they do that a lot. Take advantage of that.
Also if you have not made payments now, they will waive a significant part off. Always take it in writing, and that way then you can keep telling them that till it is not with you in writing you are not sure of how safe your payment will be to them.
Work with them and negotiate hard!
Has anyone settled for less than 75% with AmEx directly?
I called AmEx back yesterday and went through my options again.
They continue to tell me that they cannot settle for less than 75% and that would be with 'manager approval.'
Their terms are payment in full immediately. No spreading it out over a few months.
They will not send me any documentation before the payment is made which shows that I have settled for less. They say this is because I could then go turn around and show that to a lender to convince the lender that we do not owe as much to Amex.
As soon as I make payment, they will send me a settlement letter and 1099C.
My question is I have read several posts about people settling Amex accounts for much less than 75%. I am stuck if I can't get it to 50%. So are those who have settled for less than 75% ones that have waited until it goes to an outside collection agency? It doesn't seem like I can get any lower with them, they are holding firm at 75%.
I am pretty sure that AmEx will send your account to an outside
I am pretty sure that AmEx will send your account to an outside agency (most likely Zwicker) which is where you will be able to do the tough bargaining. For sure you can get 60% with Zwicker from everything I have read and my own experience. Unfortunately it sounds like they know that you will have a large sum of money after your mortgage situation is taken care of. They could care less about your other creditors - if they think they can bully you into getting a larger percentage they will do it of course. If I were you I would tell them that you have some deals in the works with your other creditors, and that all you have left is $11,000. Chances are they will take it especially if they think they can have it in one lump sum. (They settled with me for $5500 on a $10K balance, payable in 3 installments.)
Do you actually have the settlement money right now? If no, part of your problem may be that you don't ACTUALLY have the money yet. You know the saying about "money talks...".
Hold out for the 55 or 60%. They haven't sent your account to an outside agency yet so you are in a good place to negotiate.
Sounds like I would be better off letting this go to collect
When dealing with AmEx, is it just better to let it go to a collection agency?
It seems from the posts I've researched that getting 50-65% settlement is happening when it's in outside collections, while with Amex directly it's more like 75-80%.
What are the pros and cons of settling directly with Amex vs letting it go to an outside collections agency?
It wouldn't hurt to keep trying to settle with Amex. If they do
It wouldn't hurt to keep trying to settle with Amex. If they don't meet your terms, eventually it will go to collections and you can start working with them. I don't see any upside in just waiting until they turn it over to collections.
