In big trouble

It is not late dealing with AMEX if the account has not been sold to Zwicker. You can get that confirmed with Amex. You should also check your latest copy of the credit report and see if the account has been marked with a zero balance. A zero balance by a credit company will mean that the account has been sold out to CA. Are you confirmed on this portion?

Have you thought about a dmp like a debt settlement program?

I just got a call back from Zwicker and they actually made reasonable payment arrangements with me. I feel like a weight has been lifted off my shoulders. I know that the account is still with AMEX. They had to check with them to make sure my payments were acceptable.

You need to do a follow up call with Amex. The reason being is that collection agencies are famous for this tactic. THen you pay them all this money and then here comes another agency claiming that they are to collect the debt. Have you made them validate? If not, send them a debt validation letter certified mail with return receipt before you pay them anything.

They are sending me an agreement tomorrow with the details of the arrangement. They were very prompt and professional when sending a settlement letter when I was trying to refinance, so I am hoping that they will be the same way with this, but I will definately follow up with AMEX.

tell them to **** off. This is an over excited collections schmuck making an empty threat to you. Don't buy into it.

[size=2][color=darkred][please refrain from using offensive language in the forums-Mikey][/color][/size]

If you get a settlement arrangement in writing by which they agree to accept payments in specific amounts over time, and it's a deal you can really live with, go for it. That's a new contract that they can't terminate unless you fail to do what you promise.

I work for AMEX, believe me they paint themselves into this corner. They are overzealous in trying to get each and every cardmember to add additional cardholders and all sorts of other bells and whistles to the card that cost extra. Every time I'm there, I think to myself, "AMEX is really pushing for a massive debt problem!"

As far as the collector goes, listen to Jerkball. You can pay whatever monthly payment you can afford and you won't be litigated. The collector was just threatening you to pay more so he could get some spending money.

I also have a Sears account that I owe $10,000 to. I can give them $200, but they are telling me I have to pay some huge down payment in order to make arrangements. I don't have the down payment. They said they will accept my $200/month, but that I can still be litigated. Is that true?

I called Sears directly, but they wouldn't work with me. The only thing they did tell me is that I could go to the Sears store itself and pay whatever I wanted and it would post to my account. Should I pay the collection agency, or just go to the store and make payments? As long as I am making payments they can't take legal action, right?

I also have other accounts that I am trying to set up arrangments with. The majority of them are requiring at least 10% of the balance owed up front and then I can pay reasonable arrangements there after. I don't have a huge lump some to give them. Should I just set up the monthly payments I can afford eventhough they say it can still go to legal action? I figure at least I am paying something towards it and if it did go to court I could at least show that I am making an effort to pay something. Any ideas on this?

I would go to the store and pay them directly...If you are able to pay off Sears at the store, chances are you can probably get the collector removed from your CR.

I pay my Macy's account in the store, because I can get a receipt immediately and the payment posts immediately.

Have you thought about consolidation or debt settlement? There are a lot of options and if you went with either you should be able to make monthly payments on these. And yes if it does go to court it would show you are making an effort.

LVNV and Protocol Recovery Service both collect for Sears. That explains this request for the down payment, and if you don't have it but still pay $200 monthly no you can't be litigated.

Overall, if any creditor takes you to court, you go and bring your payment records, the judge will throw the case out.

I called all of the collection agencies last night that I owe to. I was trying to set up payments arrangements with them. They all are requiring this huge downpayment in order to lock me in with any type of arrangement. I just don't have it. They said I can make monthly payments, but won't guarantee that there won't be legal action taken against me at some point. I have just decided to pay what I can each month and keep it consistent and on time. I think this is better then not paying anything at all.

Is it really true that they can't take me to court as long as I am paying something on the account? I was told that they can because I breached the contract that I originally signed with these credit card companies by not keeping up with the payments (all about 7 months behind).

They can take you to court. But, when the judge sees that you are making an effort to pay the debt in consistent monthly payments, he will more than likely through it out.

Anyone can sue anyone for anything at any time. There's no rule anywhere in the U.S. that says there's someone who can't be sued. So yes, they can file an action against you and if they do, you will have to go to court and put up a defense.

If you're making payments according to a written settlement agreement, that's a good defense, as long as you're current with the payments. A settlement agreement is just that - the original debt went away and was "merged into" the new agreement to settle. The mutual promise to settle the issue is the consideration for the settlement agreement, and that's all you need.

So the best advice you've gotten so far from this thread was given by Jessi, who said, "go to the store and pay them there, in full, and get a receipt."

As long as you are making an effort by sending in a payment each month, that makes you look good.

Just curious- I am paying off an old credit card balance that my x husband left me with and I was wondering if I send them what I can a month ( they want 784.87) right now and of course I dont have it. What is the lowest amount I can send them that I can get by until my next paycheck? Thanks

Have these cards been charged off? If not the reason they want a sizeable pmt from you up front is to stop you from recieving late fee's on top of intrest. With a balance that high schanged are your monthly fee's are extremely high. Well over 100 a month which will include possibly an over limit fee, the highest intreast possible and an enormous late fee.

Paying to Sears dirctly is a good idea if you do not wish to deal with agencies. However until you have a BPA with the agencies you are still going to recieve calls.

Since, the majority of my creditors are not accepting what I am offering to give, should I just send the payments directly to the credit card or set up post dated checks with the collection agencies?

Do not set up post dated checks with the collection agencies. They can send them to the bank earlier than you expect and the bank will clear them.

I have already given a few of these collection agencies post dated check not realizing this. I do check my bank account online everyday, so I will keep my eye out for this.

If I don't give post dated checks, then how do I pay these cards monthly?

Pay them with money orders. You can get money orders at Wal Mart for $.46. Never pay anyone with a post dated check. When you do that, you run the risk of them putting the check through before the date and then if the money is not available in the checking account you have to pay nsf fee plus the amount that didn't clear.

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Good point Clay.

Tammy,

Should I send the money orders to the collection agencies, or directly to the original creditors?

Do you have validation from the collection agencies that they actually have the accounts? If not, you could contact the original creditor and see if you can make payments to them instead of the collection agency.

Jcrab, in my opinion (and I'm sure others will agree with me) I ALWAYS try to deal with the original creditor and not a collection agency. If you've made payment arrangements with a collection agency, what's not to say that the original creditor won't accept the same arrangements. Most of the time the original creditor would probably rather receive the money from you because they'll get the full amount and not have to pay a fee to the collection agency. Call them and see what they say, it's worth a try!!

My one account (Chase) is with the P. Scott Lowry law office. The debt is $1100. I called to make payments arrangements and they wanted $400 down. I don't have that, so I offered to pay $100/month. They said they can't promise it won't go to legal action. I went to the Chase website and logged on like I had always done in the past and it allowed me to set up payments right online with Chase. I paid this month and set one up to post next month. Now I just got a call from a women from the attorneys office. Should I tell her that I made payments already to Chase? I am scared because they are a law office.

jcrab1

I am assuming this law office is only collecting on behalf of Chase. They have not purchased the account from them. In such a case, you can still make payments to Chase and don't work with the law office. The most important thing is that your payment should get posted to your account. Call up Chase and know the status. Also, tell them you want to work out an arrangement and don't work with the law office. Seeing your payment efforts, they might pull back your accounts from the law office.