Newbie here - need help re: Am Exp collection
Date: Mon, 04/23/2012 - 11:31
A little background - I am in real estate in Arizona and have been for 35 years - until the real estate collapse in 2008, I had never been late on any CC or debt or loan and had 35 yrs perfect credit. Needless to say my income has been spotty being on commissions, and there have been times when I had no income for periods of time. I had savings and reserves but those were depleted during the first two years of the recession. When those were gone, I went to all my creditors and I am on programs with all (except Am Exp and one CC who were both so ugly to me and refused) and all others are working with me, some at 0% interest, others at 3% to 5%.
I worked hard to keep Am Exp current until this January when I lost a big commission check, and the next check I will get is early May.
I have never had anything go to a collection agency and I have no clue what to do or how to handle this.
I have read all the sample letters and a lot of the posts, but I am still a bit confused.
Do I send the DV letter first? Do I call them first? just what do I need to do?
Also, I saw a sample letter saying I would only deal with the creditor and not the collection agency - when would that be used???
Please help - I am really scared as if this goes to a collection account on my credit report, I will lose my license and my ability to make an income to pay my debts. I have no savings left, or any other sources of cash - they have all been used to fill in those previous periods when I had no income.
Thank you!
I don't believe sending a DV letter is appropriate in this situa
I don't believe sending a DV letter is appropriate in this situation because while the account is with a CA, it is still owned by American Express. You know the account is yours and they can prove it.
If I were you, I would wait until the debt has been delinquent for 90 days and start calling in to try to settle the debt. Do this toward the end of the calendar month and offer the collection agent between 20-30% of the balance. You will have to go back and forth and I doubt they will settle for less than 50%. If you settle, make sure to get the settlement agreement in writing before giving them money. You say you have a commission check coming next month so do what you need to to get the money together to get this account settled once and for all. It will go on your credit, but if it's already with a collection agency, I'm sure it already is.
Are you sure your license will be in jeopardy because you have some negative accounts on your report? I realize things may be different in Arizona, but here in California they don't revoke your license because you can't pay your bills.
If you do settle, AmEx will send you a 1099c and you will have to claim the amount forgiven as income and pay taxes on it.
I'm sure I may have missed something and if I did, someone will likely come along and add their two cents. Good luck.
How late are you on the AMEX card? What's your total balance du
How late are you on the AMEX card? What's your total balance due? What's your current minimum payment?
replies
I am 60 days past due and will be 90 days past due in 3 days.
I owe $24,000 approx and minimum payment is anywhere from $650 to $850 a month - it changes every month on me so I have a hard time budgeting for it til I get that month's bill.
As for my license, since I am in finance, there are certifications we have to make and one of them is "have you ever not paid a bill when due" which a positive answer takes you into special review and potential loss of license.
AMEX usually won't go less than 50% for settlements. Will that
AMEX usually won't go less than 50% for settlements. Will that check you get in May cover a $12K settlement?
No, it won't - but I could catch up and stay current as I have m
No, it won't - but I could catch up and stay current as I have more commissions coming in over the next few months...
If i tried to make a payment tomorrow (if I can find the money) will that stop the CA?
They canceled my account 2 years ago when I hadn't been late with them and pumped the interest to 29.9% and have never budged off of that.
Then I would do that. Unless you can get them to put your on a
Then I would do that. Unless you can get them to put your on a hardship plan. Have you tried calling AMEX directly and asking if they could do that for you?
They have never been willing to do any hardship plan in the past
They have never been willing to do any hardship plan in the past or even lower their 29.9% interest rate.... but if I can get the money I guess I will at least try tomorrow. (I guess I have never been this late with them, either, so that could be a factor).
I just wrapped up settling an Amex account. The last amount owe
I just wrapped up settling an Amex account. The last amount owed was about $6700. I stopped paying about 20 months ago, after about 6 months they sued me, I filed an answer etc and its been in the courts for about a year it keeps getting pushed back but the court date was set for tomorrow. I have told them I am filing bankruptcy due to their lawsuit (I owe about $100k to various cards and such, but they are the only ones that sued me), they have been in touch with my bankruptcy attorney, they called me today and settled for $975, I told them its that or nothing I will do bankruptcy and you will get nothing. Now I am just hoping none of the other creditors sues me in the next 18 months and I won't have to do bankruptcy.
Update
UPDATE -
When I got my commission check, I went online with AmEx and made my payments bringing the account current.
When I got my next statement, the payment they asked for ($400) is less than my usual payment (typcially $650 to $700). I went online and made my payment for that month, paying $450.
I did try calling AmEx but all I get is a recording saying to "contact the collection agency" - but I have never received anything from AmEx saying it was going to a collection agency, nor have they ever given me the name of the collection agency.....
Since AmEx didn't give me the name of the CA, I sent a DV letter to GC as I think there should be some type of verification from AmEx that GC is who they sent it to.
GC has never sent me anything in response to my letters (sent each time I get a bill from them) other than sending another bill from another state.
If I had a lump of cash, I would try to get a settlement, but the commission checks aren't that large - it's all I can do to cover the monthly payments.
Do I just keep making payments to AmEx online???