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Advanta, BOA, WAMU, Discover, Chase, debt settlement ?'s

Submitted by on Thu, 08/07/2008 - 19:28
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Hi,

I also posted the following in the collection/creditors forum - wasn't sure which it belongs in since it's about debt settlement, with creditors. :?

We can't afford our house, we are self employed and aren't bringing in enough money to pay the mortgage and cc's. We realized this a year ago and put the house on the market last May. No, it hasn't sold. So we used our cc's to get by. Now we have an agent that specializes in short sales and are working with countrywide and suntrust to short sale our house. It is 50,000 below appraisal price and still no lookers! We have 7 kids to house and feed, I'm a bit nervous about our future.

We owed 2500 (2900 after late fees, etc) to Advanta. They offered to settle it for $1629 in one lump sum payment through their handy web site. We stopped paying in March and just received and accepted that offer. They were aggressively calling but we used call blocking on them and then they sent an email asking me to check their web site for an offer. Why can't they all be that easy?

WAMU, after sending me to some supposed collection dept, then sent a letter to check their site, wamucanhelp, for their offer. One card - $500 balance - settled for $269. The other card - $4500 - settled for $2100. Both arranged for four payments. Wow. Of couse these accepted offers are going to give me 1099s.

Discover has a web site too but it does not offer a discount on the principal (yet). (Balance=2500) I wonder if it will? Anyone know?

Talked to BOA today and I owe them the most. 12,000 on one card alone - $6000 on another and $5500 on another. They'll waive late fees, reduce interest to 4.5% and set up the payment plan for 60 months - the three together come up to $400 a month. Ouch, that's more than when we were on time with our payments. Anyone have any experience with them? Will they offer/accept a lump settlement for less than the principal? Will they do it for more than 4 months? Will they just sue me since so much is at stake?

Chase has been nice on the phone, and not harassed. They just call once a month. Will they end up making an offer, or getting aggressive? My balance with them is $8k.

Thanks for your input and experience. Lisa


From what I've read in other posts, B of A is generally one of the easiest to settle with, and Discover is one of the hardest. We had three accounts with Chase, and they threatened a lawsuit on one but not on the other two, so I think it just depends on whatever their internal criteria is.

Maybe others will post more advice/experiences.


Submitted by alias1958 on Thu, 08/07/2008 - 20:30

alias1958

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Bank of America used to be easy to settle with but in the last year they have been a real pain in the butt. They will settle for a lump sum like the other creditors but it may take longer for them to be willing to bend. Hang in there though and save your money so when they are willing to settle you can jump on their offer.


Submitted by mobile0311 on Fri, 08/08/2008 - 06:27

mobile0311

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I am in a debt settlement program. I had nine cards, and two accounts with Bank of America. Those two with BoA, which totalled about 20,000 together, were the first two to settle, both around 30%. I didn't even have any contact with them, they dealt directly with my settlement co. from the beginning. Chase has been nice to me also, but the account was due to be charged off on 7/31 and I haven't heard anything since. I have been in the program since January, so by this time all the collection agencies etc. are dealing with the settlement co. and I rarely get calls any more. So far so good.


Submitted by on Fri, 08/08/2008 - 07:49

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I have a car loan with BOA. I only have 4 payments left. Anyhow, this month's payment was 3 days late due to cash flow. They called me on the third day (the day I paid) and stated in the call that it was being recorded and that it was a collection call. I won't ever do business with BOA again. I realize my due date was a certain time but to call after 3 days is ridiculous. My Chrysler account has been up to 14 days late and no one has ever called.


Submitted by on Fri, 08/08/2008 - 18:45

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I had two cards with Chase. Yes, they are nice to talk to and really tried to work with me. The only problem with Chase was that they did not wait to send me court papers, but I was able to settle before it went to court.

Discover didn't even wait. They sent me directly to collections. But I was able to pay that balance off quickly so I did not have too many harrassing calls. Discover would not even talk to me after it went to collections.

Good luck and let us know how it goes.


Submitted by spatterson_40 on Fri, 08/08/2008 - 18:50

spatterson_40

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That's interesting because I actually found that B of A called almost the least of any of our creditors when we defaulted on all of our credit cards. RBS and Advanta called every single day, Wamu called every two to three days, several others called a couple of times a week, and B of A only called once every week or two. It just reconfirms to me that it's hard to predict what each creditor will do!


Submitted by alias1958 on Fri, 08/08/2008 - 18:52

alias1958

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Hi,

Thanks for the input! I still have a lot to learn and read...


Submitted by on Fri, 08/08/2008 - 19:07

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I can't log in, I didn't get my password and the system isn't emailing it to me....maybe I typoed my email wrong...

Thanks for you all's input. WAMU was the biggest harasser for us, so I was surprised when they made the offers to settle. I am the most nervous about BOA since they have the most to loose. I sure wish we had been able to sell our house last year. Owning real estate was the biggest mistake we've ever made! Well, thanks again. No stress....it's only money! :D


Submitted by on Fri, 08/08/2008 - 19:15

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I owed BoA about 140K in unsecured debt. At the beginning the calls were agressive and threatening, then as they changed from one dept. to another the people became more reasonable. I talked about a settlement but they said that was out of the question, because the charges were too recent , etc. My position was hard, I did not pay them a penny, and after about 5 months they called and mentioned that I mentioned something about a settlement before, so they agreed to settle for 19% of the balance in one single payement. I am not sure, but I think I was lucky because they were short of cash (this was a few month ago), I even read that in a NYT article. So, good luck


Submitted by on Fri, 08/15/2008 - 22:06

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I decided to do debt settlement on my own -- and yes it's stressful - so far American express is at 54% (month three), Chase is about 75%(month 2) and Advanta waffles between 90-70%). I sent letters etc - Amx sent me to Zwicker and asso - hung up on the worst guy - talked to two others that weren't that bad. I would love to hear from anyone that was successful getting settlements on their own. Really scary time, but with me, it's either this or bk


Submitted by on Wed, 12/03/2008 - 14:33

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I am very close to settling 5 very big accounts. BOA 20% of 60,000 ( 1 lump sum) Chase 30% of 15,000 ( 4 months to pay)GE Money 30% of 10,000 ( 1 lump sum) and Citi 55% of 9,000 ( Over a year). Amex will take 1100 of 2100 and Capital won't budge off 2400. The bottom line is I am tapped out asking people for money and my wife's company folded. After settling like 100,000 worth of debt - I will end up with charge offs on my little accounts. I tried and will continue till the end. When you have a legit hardship things work out. Now I need to get through the IRS and the Insolvent test.


Submitted by on Wed, 12/03/2008 - 14:42

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It's really great to hear some of them will settle as low - like Chase. I just hope this works out -- I've done my homework - they all should settle some. Any one else have recent settlements? and how long did it take you to make them. Just trying to wreck my credit the least - and then maybe with getting zero balance letters - it will recover in my lifetime.


Submitted by on Wed, 12/03/2008 - 17:42

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I have been in a settlement program for close to a year now, and the accounts that have settled the easiest are some of the larger ones. You are right, the smaller accounts are the biggest pain in the butt as far as wanting to negotiate. I have a couple around $2500 that won't budge at all, either.


Submitted by SusieQ on Mon, 12/08/2008 - 08:19

SusieQ

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By some stroke of luck after I sent that post this morning, HSBC did call and settled a store card for 20% on $4800 (1 lump sum). That makes 3 cards now settling for 20%, HSBC, Citi and BofA. I am noticing they are making the decision to settle for such low amounts since I started just writing letters instead of calling them. In the letters I gave them every last detail of why I'm in debt and how bad my financial picture is right now. Also, I have made it clear I'm not trying to "lessen" the credit impact by settling before charge off. So they know I'll let them all go to CO before I settle for more. Probably doesn't hurt that I've been able to offer them 1 lump sum in all the offers. Just a suggestion for anyone looking to try to settle for as low as 20%.


Submitted by on Mon, 12/08/2008 - 10:44

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We are with a debt settlement program and just settled last month with Chase. They hardly called us at all. They called 2 times, i told them we were with DebtSettlementUSA and they said thanks you. And then a few month later took legal action against us. But we just settled with them for less. Not as much less as i would have liked, but because of the legal action, they were not willing to negotiate much. We setteled 8,000 for 4,900. But it is our first to be taken care of and we are very happy. Bank of America just sent us an arbitration notice. We owe them the most 23,000. They have been trying to negotiate since the beginning with the settlement co. but we owe them the most so we don't have to money yet to settle with them.

HSBC is a PIA. We tried to negotiate with them ourselves and it didn't work. We had to change our phone number because of them. So we added them to our settlement plant. But basically according to our settlement program you can expect 20-40% most of the time unless they take legal action against you, then it will be more.


Submitted by on Mon, 12/08/2008 - 11:00

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Kinnewj, I asked for a letter to be faxed to me. They did so right away just saying that they agree to the settlement amount and the account will be closed with no further obligation. I then did a check over the phone. I put the money into a checking account that is used solely for paying the settlements so only the amount of the settlement is in there and they cant get my primary account number. Then in about 2 weeks I can expect to see the final settlement papers. Just one note, I'm still dealing with the original creditor so there is more of a level of trust. If I were dealing with a collection agency I would probably be a little more skeptical.


Submitted by on Tue, 12/09/2008 - 06:11

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I paid Chase directly with a check by phone. I also felt that it was more trustworthy dealing directly with CHase. They faxed our settlement co. a letter saying that they accepted my amount of 4,900. They they mailed me a letter to the same effect. Then about 2 weeks or so later i got a letter from Chase saying that my account was closed and amount i paid took care of my obligations.

Pretty easy.


Submitted by on Wed, 12/10/2008 - 06:53

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I have 3 chase cards totaling 34000.00 I am current with all and have NEVER been late . Recently lost job and am trying to keep head above water. I offerred Chase 60% and they declined. What do I do now?


Submitted by on Thu, 12/11/2008 - 07:51

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I also tried to settle with the companies before I went deliquent as I had never had a blemish on my credit my entire life. But they all declined as there is just no way they will settle before you miss a payment. They will settle with you after 3-6 months of missed payments so you need to decide if settling is worth the hit to ur credit. I did & I don't regret it as it would have taken me 10x longer to ever pay the debt than the few years my credit will be bad.


Submitted by on Thu, 12/11/2008 - 15:14

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We settled with CHase on 2 accounts for 36 cents on the dollar and BoA(formerly an MBNA account) for 25 cents on the dollar. Haven't had any luck on settling with Discover or Citi yet but I am currently on low payment workout plans with both. I've found the best thing to do is call them every chance you get like they do you!


Submitted by on Sun, 02/01/2009 - 08:57

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I'm starting to do debt settlement on my own. I have been trying to keep up with my credit cards but can't even make minimums anymore. Our mortgage is killing us but we are trying to keep up with that first. In the same situation....can't sell our house!! So I've started not paying my cc's. I've only missed the first payment so far. When do the phone calls start and how long before I should settle or see settlement offers? Pls help!!


Submitted by on Mon, 02/02/2009 - 23:52

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Hi neverusingcreditagain,



A most excellent strategy! The letter you wrote is called a "hardship letter" in the industry and many creditors really really want one, even if they do not request it. The bad part of calling them is you could get a trainee, someone with little experience, or a person having a bad day, etc etc. A letter is documented and any responses cross-checked, so they will be careful to not cause themselves problems in the future when formulating their response. Plus there is only so much you can teach to a customer service person. :!:

And this is how knowledge is power!

chrys


Submitted by Chrys Henderson on Wed, 02/04/2009 - 01:12

Chrys Henderson

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MY MOTHER RECENTLY PASSED AWAY. BANK OF AMERICA OFFERED TO SETTLE AND RELEASE CLAIM FROM ESTATE IF I WOULD PAY 40% OF BALANCE. IS THIS LEGIT, OR WILL THEY COME AFTER ME LATER?


Submitted by on Tue, 02/17/2009 - 11:29

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BOA has a right to go after estate for your mother. However, if she has nothing...they get nothing unless you signed for the credit card for her or co-signed.


Submitted by on Tue, 02/17/2009 - 17:37

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BANK OF AMERICA GUY TOLD ME HE HAD TO HAVE $149 FOR A GOOD FAITH BEFORE HE COULD FAX OR SEND ME SETTLEMENT IN WRITING. IS THIS RIGHT?


Submitted by on Mon, 03/16/2009 - 11:09

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I was scared to answer the phone. Caller ID read "private" "unknown" and alot of out of state area codes. I have about $65000 of cc debt. B of A was the first to make an offer to settle. $3400 on a $11000 balance. I will pay that then try to reduce the settlement they were will to accept on my 2nd cc - $12000 and they will take 60%. Amex was very reasonable and sympathetic after the 3rd call or so. I just told them I could not pay. They wiped out any interest and penalties for the next 6 months and reduced my payments, which will be applied directly to the principal, to $40/mo on one and $75/mo on the other. Citi was also very cooperative. Again, forgiving and interest and penalties for the next 6 mo and having me pay $66/bimonthly. At the end of 6 mo, we'll review my situation and renegotiate. Advanta seems really hard to deal with. They don't seem to want to bend at all....yet. But I can't pay them and it is to there advantage to offer a settlement or get nothing. Haven't tried with Chase yet, or Barclay. Since I can't pay, I guess I'll soon find out. This is killing me. I have never been unable to pay my monthly bills in 30 years. I'm draining my small retirement savings to settle. But I'd rather be debt free and poor.


Submitted by on Mon, 03/23/2009 - 08:21

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sadly alot of people are in the same situation. Honestly if you dont do it now, your retirement, will be gone soon anyhow because you wont be able to make the payments and eventually itwill be gone and you will still have the payments. hang in there we all know it stinks, but you will get through it i promise!


Submitted by love_my_things on Tue, 03/24/2009 - 07:06

love_my_things

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I am trying to settle Chase. How long has your account been past due to get offered 25%? I am 55 days past due, and they are offering me 80%. I would like to get 30-35% to settle in one lump sum. I am trying to stay patient here...


Submitted by on Tue, 07/28/2009 - 12:22

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I settled with chase 35% at 90 days late. Just hang in there, I know Chase will settle for 30%, but I want to get over with.
The only thing I don't like is once I finish my payments, Chase reported to charge off with note details "settlement accepted on this account" I'll deal with this later.


Submitted by on Tue, 07/28/2009 - 12:48

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I am at the end of mo 5 w/ B of A negotiations are close.
I had prev said I could settle w/ them for $6k on acct apx 35% of bal... now since no $ coming in I have less this month and they are not willing to settle... They Say I have option to next month since it is close to end of mo/chg off date, but want me to pay like $425 to keep alive as first of 4 pmts offered as settlement, and renogotiate next month for lesser balance...
Not sure if this is a possiblilty. Anybody have any input.
thanks.
P


Submitted by on Wed, 07/29/2009 - 14:53

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