Sears/Citi Possible Settlement

I'm all about getting the best deal possible, and I believe you can definitely do better, but it's going to take patience and more phone calls. The issue with this account, though, is the fact that the balance is so low, and the patience needed is probably going to see an increased balance, and perhaps not as large of a discount as you're waiting for. I've settled Sears/Citi accounts for as low as 20%, but the timing was "just right" and it's certainly not the "norm." Good luck!

Thanks Marie,

Ive been searching the posts and I think I am going to take it. It seems many Sears accounts go to collections/legal after 120 days. When I look at my financial mess, the extra $$ is not worth it.

I think the stress is taking off 5 yrs of my life for each account I have, in which case I should already be dead.

Any tips for Cap 1?

Thanks again

We settled our Sears/Citi at 50%. I wanted it done.

Having trouble with Capital One though. They let us settle one of the smaller ones for about 50% (balance was only $2200), but won't budge on the other one with $3500 balance. They will only go back to original principal amount of $3200. Says charge off is around 9/22. I wonder what happens to their accounts after charge off and do we really want one of those on our credit? This is the last card I have to settle. We started with $48K and have paid $20K so far to settle. I'm happy with that but darn if this last one isn't a stinker.

Citi settles for as low as 15%-20% right before chargeoff, but not everyone gets this deal. If they refer the account to a CA, you're in luck. Referral of an account to an attorney before chargeoff is uncommon but can happen. Since you may to get a 50% settlement even if gets to an attorney, I would not settle prior to that for more than 25%-30%.

in re of the last post... citi just sent one of our accounts (balance is less than $6000) straight to an attorney firm. one that i accepted the 50% settlement offer on was just days before it was set to go to the attorney.. now we have the last one (with a large balance), we have a 50% offer good until the 30th. i expect since we can not work that as of right now, they will most likely send it straight to the atty too... bad thing is, from the one letter i got from the atty on the smaller account, it says that the balance will continue to accrue interest.. this is the first account i have had sent to an atty or collection agency that has said that, the rest of them has said that once they get them the interest stops... now why is citi doing this differently, or is it a scare tactic used by the atty firm???

I found Citi to be more difficult and they were very ready to send to an attorney. Can't imagine holding out for 20%, plus the balance was growing fast!

yeah, we had the one larger citi balance paid down to around $15k, then when we defaulted, the balance is back up to over $18k... it sure dont take long for interest to rack back up cause they hike the rate to 29% when you default.....
i sure hope i at least get a letter in re of my ssdi backpay today, as to when i can expect my $$ and the exact amount of backpay i will get.. got an idea on the amount, but no idea how soon it will come.. at least if i know when, i can talk to citi to see what we can work out....

Citi/Home Depot offered me 50%, I refused, and at 60 days they sent my account to an attorney. I'd take the 40% offer. Now I'm looking at 70% :(