When the cc company calls for the first time

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I have lost my job and my rates have gone to 29.9 I cannot find work and even if i do it will be just enough to pay rent and food. I

[QUOTE=kevinbass38;719559]I have lost my job and my rates have gone to 29.9 I cannot find work and even if i do it will be just enough to pay rent and food. I[/QUOTE]

sounds to me like you know what to say then :)

but i'd leave off the interest rate part cause they might strong arm you into a lower interest rate and get you to pay if you ever have money

well, what you tell them is the truth...the reason you cannot pay. I do not believe in this strategic default business. It seems very dishonest. I paid mine until the month when I couldnt find a way to pay it all. Then I let it all go tumbling down.

i will differ slightly with bb on this one in that you may not need to settle. perhaps if they gave you a workout plan with a low interest rate it would be good enough for you.

due to the amount of debt I had, none of that would have been any more than a temporary band aid.

^^ true dan, but as the OP said he lost his job and has no income. and even if he does get some sorta income he said he's gotta take care of the rent/food/etc. it seems from what he's saying even a 0% apr wouldn't help at this point in time since there is no cash flow coming in.

I just got off the phone with Chase card services. They said that I have 15 days before the case will be sent to the legal dept. They have only offered me to pay the past due amount in portions. No mention of a settlement has been made......what should I do?

Chase just denied my offer of 30% settlement on 19,500 owed. No payments have been made in over 60 days. They offered 50% and said that was the final offer and that the case would go to an attorney in 9 days. I cannot afford 50% What should I do?

Kevin,

Did you offer to settle with them or did they offer to settle with you first? IMO its safer to always wait to have them offer? Also Chase will not go lower than 50% until at least 120 days....

i got 35% from chase at about 70 days late. but i am having trouble with fia(bank of america) who everyone seems to say were easy to deal with. i am at 90 days with them and they won't even talk settlement. it seems like there is no "rhyme or reason" with these companies...

I just spoke to Chase again and they said that in 4 days, my case will be sentto " pre litigation." I have been reading quite a bit in the forums about people going 90, 120, and 160 and up to3 years behind on payments. Why does it seem that my case is going directly to court. I have the money to settle at 30% but they countered my 30% offer with 50% and now it seems it will go to court. Will I then lose my chance to negotiate? How fast will this thing realistically go to court.

"I do not believe in this strategic default business. It seems very dishonest....." I agree with you in part there Dan but I myself have no problem with my current "strategic" default. Yes I have a "hardship" with lack of money but its nothing "they" would condsider a hardship. Truth to tell I think most people with a real hardship like job loss, very bad illness, very sick loved one or what have you probably have little means to even settle at the percentages that you typically seem to see from the major creditors. And probably even less motivation.

The reason I dont see anything personally wrong with it is that when the banks raise your rate despite no late payments or change your interest rate just because "they can" (and yes this is just what BoA told me on the phone) or any manner of detrimental changes to your account despite not being behind its just a "business decision" but when consumers default and just ignore judgments (if they can) or file bankruptcy thats "dishonest".

I can tell you right now that personally I would never even had considered defaulting like I am right now or declaring BK like I will if things dont work out like I want in the end if they hadnt unilaterally *&%$ me despite over 20 years of perfect credit behavior.

"Why does it seem that my case is going directly to court...."

It most likely isnt. While no one really knows the triggers for creditors to sue its apperently very VERY rare for them to even entertain the thought prior to chargeoff unless you have some very very recent balance transfers or cash advances.

What is NOT rare though is for them to try and frighten you and most people get nervous at the word "litigation". Unless you have some nice non exempt assets they can see on your credit report or public data base search on you they are most likely just blowing smoke.

They are using it for leverage "if you dont take our 50% offer we MIGHT sue. Also notice they said "pre litigation". Anyone know what that is? I dont. I THINK I know what it MIGHT be according to the context but notice they didnt say "we will sue you in 30 days".

could they sue you? Yes. Will they sue you? I have no idea nor does anyone else. But the odds are against it at this early stage Id say.

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Prelitigation is just their internal collections department / legal department.

jill- i know you probably posted it somewhere on here before but how many days were you when fia settled with you? thanks for your help

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thanks jill, i am just going to sit tight and wait for an offer. we are almost at 120 days. did they call with the offers or send it by mail?

By phone.
I can't remember who brought it up first but we basically said "we talked to some family and they are willing to lend us the money and we have x amount of money"

Greetings to all,

Just a couple of thought to share.....

1. The ccc's don't give a damn about your interest rate going from 9.9% to 29.9%.

2. If you are going through a job loss or whatever, your first responsibility is survival.
Senor Ramsey says it best; food, shelter, utilities and transportation.

3. If you know the brick wall is coming up fast, then you've got to take action before you hit it. I have no problem with a preemptive strike while you have a few assets left (cash).

4. For what it's worth, Chase-me down/run over me along with BOA-the snake should be the easiest to settle with.

5. Chase will settle from 60 days on and the snake from about 100 days on.

6. Pre-litigation sounds like a bluff to me. We are all in pre-death you know!

Was you balance a result of a cash advance or balance transfer?

Repectfully yours,
King " Kash" Jabba Labba

I had been doing the balance transfer thing for a while, but i don't remember how much of the amount I owe is the result of a balance transfer.