Types of hardship plans - 3 Benefits and 2 drawbacks

I'm assuming that you are the same Kristin who had another thread about American Express, where I posted my experiences with them. Just in case you're not the same one, I'm posting them again here.

I looked back through my notes with Amex to see exactly what they offered me. What I did was to send a letter when I knew that we weren't going to be able to keep caught up on our payments. I explained that we had experienced a loss of income and would be unable to make the payments. They ignored my letter, but when the collection calls started (at about 30 days past due), I told them that I had a hardship and had sent a letter. The collector put a request in for the hardship department to call me back. The hardship department called back the next day and asked about my situation, then offered me the hardship program. It was a six month program, with 9.99% interest rate, and $50 per month payments. My balance was only about $2000, so the payments would probably be higher if your balance is higher. I remember the gal apologizing that their programs were not as good as what Visa/Mastercard could offer and saying that they were working on trying to get better programs in place--so it's possible that they may have some better programs now.

If you aren't able to make the payments or do the hardship program, or come up with a settlement amount, you could just wait it out and see what they do. They never did threaten a lawsuit on either my husband's account ($10,000 balance) or mine, and we were about 120 days past due at the time we ended up filing BK. They did send my account to a CA at one point, but they pulled it back when I asked for the CAs address so that I could send a CD letter.

thanks alias1958. how do I find the address for amex? all I have is the billing address. I checked the creditors list on the link side. Do I just pick the one for amex that includes my account numbers?

On the back of my bill, on the right hand side, is a list of phone numbers and addresses. I just used the Customer Service address. You could try using that address and putting it to the attention of the Hardship Department. (At the time that I sent my original letter, I didn't even know that there WAS a separtate Hardship Department!)

Good luck! :)

thanks so much!! I already sent one letter, certified return receipt. I used the billing address though and marked it attn: Account Management. I will send another one through the customer service dept. I did get my return receipt back but who knows where my letter is now.

Do you think if I call them and tell them I won't be paying on time, they won't call me after 2 weeks asking about the payment? Or, can I tell them to not call me at work? That happened once before when I accidentally missed a payment so it was 2 weeks late. (It really was an accident!)

I can't send a cease and desist letter until they start hounding me, right? I'll go find links to that next. :-)

Original creditors don't have to obey a cease and desist, unless you live in one of the few states that have laws to the effect. I live in California, which is one of those states, but I don't know about yours. I think though (but I'm not certain, so maybe someone else can verify) that you still have the right to tell the OC not to contact you at work. In my expereience, even if you tell them you can't pay and tell them why, they will still keep calling you pretty regularly.

It was a six month program, with 9.99% interest rate, and $50 per month payments. My balance was only about $2000, so the payments would probably be higher if your balance is higher
Do you mean you only had to pay $50 for 6months and thats it ? What about the rest of the balance?

After the six months, the card reverted to the previous terms. The remaining balance would still be there, the interest rate would return to the previous rate, and the minimum monthly payments would return to the previous amount. Hardship programs, for the most part, are just temporary solutions for temporary situations. If your situtation is not temporary or you can't do anything to change it within the six months to one year that most companies offer, then you have to look for a more long-term solution.

The reason that creditors offer hardship programs is that they hope you will be able to turn things around, start paying your bills again, and therefore, they keep earning money off of you!

When you placed you amex on a hardship program, were you still able to use your card or did they shut it off?

I was paying $400 in interest every month for years . It was a business account. I had $40,000 open and I owed about $30,000 when my husband got cancer. He was out of work and even though we had insurance medical bills piled up. I used Amex to explain my business a dumb move. I had stopped using the card and was paying it off.

I asked for a hardship program. I figured I had paid twice the principal in interest and never was late . Then this month I had trouble with my payment. They still wanted $580.00 the regular payment with 0 interest. I know that sounds good and for the past five months I was able to do it. This month I cannot. I asked if I could pay $100 a week and they said no I was going to be taken out of the hardship program. They were not nice.

So now I have no choice but to relinquish the hardship program . We are so close to getting a Making Homes Affordable loan which will cut our HP in half but I must not miss a HP. I told them that. I was working with my bank since April and now everything falls apart.
In weeks I may get my loan from my bank.

If I pay them their money I won't be able to make my HP. I have been on such a tight budget. I am very depressed at how they are treating me.

By the way I am in CA and I said my phone number is business and it is and so they cannot call me. If you put it in writing that you will not take calls at home or work they must obey.
A person can lose their job because of these calls and there are class action lawsuits concerning these harassing calls.

Right now I have money owed by my business accounts and I must wait for it. Amex will not .

I also had my credit limit dropped by Amex and then my other creditors followed suit. They started the whole downward slide They make it look as though you charged all available credit when they lower your AC that way.

I don't know one person who is happy with Amex. I suspect some who say wonderful things are with the company or else very wealthy.

Amex is horrible. I have an account with them and my grandmother dose as well my grandmother is unable to commit to regular 500.00 pymts any longer and can do 200 until it is paid off. I called on her behalf yesterday and ended up with a very rude rep. What makes this situation worse for this rep is I work in collections for a very large company I thought that our rules with my job and hardship programs were a pain to get signed up for and not worth the hassle until i spoke with AMEX yesterday. I know all the collection laws and guidelines and I don't feel that they practice them as they should. They told me that the company only has one program 6 months at 0% apr and then 6 months at 9.99 % apr and then back to normal rates and pymts at the end of the year and will be unable to get on any other program for 12 months after the completion of the program. When asked what they do for people that are in a permeniate situation such as my grandmother they would not answer the question and would just tell me about this one program they had. After asking to speak to a manager his attitude was just as bad. When asked the same question and getting the same answer while being talked over, I asked a question of " What would you do for a customer that made 10000 a month and is now going to have to be placed on disabilty and will only be making tops 3000 a month and can no longer afford the current min payment and this situation would not ever change." The MANAGER very rude said this is all i got do you want it or not and would not answer my question treated me so badly. I advised him that this is the only company i know that doesn't provide a long term program has bad customer experience and that I am also a card member along with almost everyone else in my family and I will be closing my card and my family will be as well and doing business with another company that values their consumer. This managers only response is im sorry you feel this way this is what i can offer you on ur grandmothers actt. You will get no where with these people and I thought i had a fighting chance seeing how i do this job for a living. So for those of you other there having a hard time the best thing i can suggest if you have an amex card is attempting to settle it out or working with a non for profit CCS i know there are alot of companies out there and many are not what they say they are so if you want one that is legit look up Money Mangement International (MMI) GreenPath or Novadebt they are good companies and will work for you.

There are many ways to solve your debt problems. You can use the search box at the top of your screen and see what others have to say about the companies you are using or may be using. Before you choose any company, please do your homework and check them out thoroughly. Some have had luck with certain companies, others have gone the Do it Yourself method. Keep us posted and good luck..karen

I called Amx, to ask about hardship due to job loss and was transfered to that department spoke with a lady about my situation and she said they would lower my monthly payment and I would have 6 month of 0% interest and then 6 months of 9.99% interest and after the year it would go back to where it was before I started this program, and while on it for the year I could not use the card, which is fine with me. and I could take myself off the hardship program at anytime during that year. Also, you have to make the first payment via phone and you have to make your first payment on the program via phone and after that however you want, but you cannot be late one time or you will be removed from the program. She was very nice about it, and I don't have that high of a balance under $5K and I have never been late one time. so if you want to do this, just call and make sure you call on the day you want your payment due, being on unemployment I am making it on the final day its due. Hope this help anyone.

Forget any help if you owe about $20.000 or more. They want the entire payment at 0 interest and how does that help if you cannot make that payment?

They turned me over to lawyers Zwicker and Associates and the one attorney I have read about . This is not a reputable honest firm I see after reading on Google. Amex forces people into bankruptcy.