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State Farm Bank

Date: Sat, 01/30/2010 - 16:26

Submitted by luckin10
on Sat, 01/30/2010 - 16:26

Posts: 181 Credits: [Donate]

Total Replies: 4


I have read some older threads about State Farm Bank. I thought I would start a new one. We are just starting this process and they are one of the cards we are needing to settle. We got notice from them in Dec that they are doubling our min payment and raising our interest rate by a point. However, we have never been late on a payment, never gone over the limit etc..we can opt to cancel the account. I tried to do this today b/c I understood (actual letter at husband's work) that we had until the 31st..well we had until the 29th. So we are for sure faced with a min payment of $500 now and higher interest. I am so mad and now even more determined to start this whole debt settlement process. I told her we are looking into Bankruptcy and from our first consult we were told to just pay our essential bills and they aren't one of them. She said to expect our interest rate to go up to 24% with late fees and to expect a whole lot of calls. I asked her to please work with us and to please cancel the account on old terms..even went as far as speaking with supervisor. No luck. So I guess the games begin. Anyone dealt with this card? I don't feel like they are as popular of a card as Amer. Express, Discover etc..has anyone ever settled with them? I am so scared to start this process..with any of our cards..do I just simple quit paying and wait for them to start calling? We already are starting to save money for the settlements. I always appreciate others advice..thanks again...


Yup, as long as you're current on your account the creditor might not discuss a settlement, i.e. you'd need to default before you can actually expect them to offer a settlement.

If you are planning to do the settlement yourself you may check out the 'do it yourself' page for more info.


lrhall41

Submitted by SC on Mon, 02/01/2010 - 01:44

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hi luckin10,

I dealt with state farm bank until december and then my acct was charged off. They did offer settlements throughout the process and the lowest that they would go was 50 percent right before charge off (4k of 8k)---180 days. I think I accrued like 2k in interest and late fees during the six months that I didn't pay so really the 50 percent wasn't the original balance of 6k. I had to let it charge off b/c i didn't have the funds to settle at that amount. It was sent to a collections agency in new york, i got a notice within a few days that it charged off stating they got my acct. I sent them a debt validation letter and waiting to hear from them.

SF Bank did offer me a hardship plan up to 120 days late with a lower interest rate. After that, they said i had to pay up the minimums so I was under 120 days late to qualify... Maybe you can wait until you're one payment late to see about qualifying for a hardship plan? or go the settlement route?

Just remember that they document everything (like most creditors) and that there are only a handful of reps so I ended up talking to some of the same ones...they said oh, i remember you, i talked to yesterday or last week..etc...:)

good luck!


lrhall41

Submitted by on Mon, 02/01/2010 - 04:18

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I am going thru it too they are not very forgiving. I am working with an Attorny and it is not going very well, they will only take 75% of the Balance right now. I just don't know what will happen once it goes to collections?
So what ever happened? Did you settle? Did it go to collections?

Thanks for you help.


lrhall41

Submitted by on Tue, 07/27/2010 - 14:22

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it happened to me too. with me pregant and not working and jusy in the last few weeks my husband got promoted to manager we were barley making it and i wad never late at paying the mim payment of like 10 to 15 dollars a month then just last month it went up to 40 dollars. i was like hell why do much. i couldnt aford that much that much since feb is a short month with rent and car and othet bills. i plan on paying a good chunk of it off next week if we get paid if not yhen screwed again. why punish us if we pay on time.


lrhall41

Submitted by on Fri, 02/25/2011 - 23:28

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