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next steps? citi

Date: Tue, 04/03/2012 - 18:51

Submitted by loudobbsss
on Tue, 04/03/2012 - 18:51

Posts: 20 Credits: [Donate]

Total Replies: 9


Ok so i missed one payment on citi for my 14.5k balance. They have called and I havent picked up. Spoke to them once and they wouldnt offer anything. When I pick up what should I do next? My second payment to miss is on the 21st. Am I waiting for them to offer a deal? How many days do I wait usually or should I not pay for? What is charge off am I waiting for this? When does this start to affect the credit in a negative?
Thanks


Do you have $7k to settle with them?? Citi generally only settles off on average of 50%. They probably wont start talking settlement until well after 90 days. They can however be agressive and start legal action anytime after 90 days if they think you have money.

It will start affecting your credit when you are 30 days late.

You might wanna ready your other thread. http://www.debtconsolidationcare.com/forums/showthread.php?p=907998#post907998


lrhall41

Submitted by SOAPLADY on Tue, 04/03/2012 - 19:01

( Posts: 17315 | Credits: )


Citi will probably offer you a hardship program before they think of settling the account or even talk about settling. Technically, revolving credit accounts are charged off after 180 days but most credit card companies will do it within 90 days from the date of delinquency. Your credit report and score will be affected as soon as Citi reports the delinquency to the credit bureau.


lrhall41

Submitted by StevenDoyle on Wed, 04/04/2012 - 00:41

( Posts: 199 | Credits: )


Hi Steven,

Banks issuing unsecured revolving credit cards generally do not charge off accounts at 90 days. They can, but it is not a normal practice.
Charge off is an accounting function outlined in General Accepted Accounting Principles (GAAP) that banks adhere to. GAAP guidance requires non performing unsecured revolving consumer accounts to be treated as a full loss on the banks books no later than 180 days of payment default.
Bank losses are publicly reported and are generally viewed negatively. This is one of the reasons why charge off, and the loss recognition, as a general practice, is delayed for the maximum amount of time allowed.


lrhall41

Submitted by MichaelBovee on Wed, 04/04/2012 - 16:06

( Posts: 125 | Credits: )


ok so i am already late 40 days. Should I wait the max of 90 days or let it keep going past 3 months since it already has affected my credit? I have only 2k saved but am banking my old payments of 260 a month. Please just lead me. Do I wait till it goes to a collection agency??? I asked about hard ship and offered 100 a month zero interest. She said its generally 16% of the balance for a monthly payment which would be way to high. So whats next thanks....


lrhall41

Submitted by loudobbsss on Fri, 04/06/2012 - 06:26

( Posts: 20 | Credits: )


Hi Loud,

Soap Lady spelled out what you are up against mathematically using the information you provided and a fair and accurate generalization of the pre-chargeoff debt settlement trends with citi bank credit cards currently.

Without a departure by citi from the current recovery policies for credit card accounts between 1 and 180 days late, or you pulling together more money in the next 5 months to settle before charge off, you wont be settling at the most optimal time.

That does not have to be a bad thing. Here goes some marathon feedback:

Quote:

When I pick up what should I do next?
If you cannot pay - why? Whatever that reason,that is your hardship. If you pick up their calls (one every few weeks is sufficient), tell your hardship. Keep it brief. A notation is made in your file.

Quote:
Am I waiting for them to offer a deal?
Yes and no. Banks generally want to get you on track with paying the full balance back, even if at a lower interest rate, for the first couple months of default. If a reduced payment plan they offer works for you - consider the deal.
If they offer a settlement in the first 6 months of delinquency, the percentage reduction is what others have stated. You may even get an offer in the mail from citi.

Quote:
How many days do I wait usually or should I not pay for?
The days to wait does not mean as much as the money available to actually take advantage of a plan or settlement does. Given the math you shared, if you are going to hold out for settlement, you wont be settling with CITI.

Quote:
What is charge off am I waiting for this?
Read the following for the basics: http://www.debtconsolidationcare.com/wiki/debt/Charge-Off-and-Credit-Cards.html

Charge off is going to mean different things for different people. Avoiding charge off means one thing. Waiting for it to happen and reacting to what happens afterward is another. If you are trying to settle the citi account, and given what you have shared so far, yes, you are waiting for this. At the rate you are able to save up the money you need to settle using current trends, you will be well past charge off.

Quote:
When does this start to affect the credit in a negative?
The 30 day late is the impact point. Each month reported late thereafter is additional damage. 30, 60, 90 do the most initial harm. 120, 150 days hurt, but the damage was already done for the most part. 180 days coincides with with the charge off and... viola... citi has done their worst as far as credit report goes unless....


  • They place the account with an attorney who sues and gets a judgment that then becomes part of your public record section of your credit report
  • Sell the account to a debt buyer who later reports as a collection account (be sure if this occurs that citi reports the charged off trade line with a zero balance)

Quote:
Should I wait the max of 90 days or let it keep going past 3 months since it already has affected my credit?
Not sure why you are hung up on 90 days. 90 days might matter if you are trying to reage an account, but not much else.

Quote:
I have only 2k saved but am banking my old payments of 260 a month
With a 14.5k balance and a 260 a month payment - your interest rate was low. Was it an intro rate? Did you ring up the 14.5 balance pretty fast? Were you on a hardship payment plan already, or in a debt management plan with a credit counseling agency?

Quote:
Do I wait till it goes to a collection agency???
Given what you have shared - your current trajectory assures that the debt will be placed with an outside 3rd party.

Quote:
I asked about hard ship and offered 100 a month zero interest.
A 14,500.00 balance will take 12 years to pay at 0% and 100 per month. Banks cannot offer you a restructured payment plan that goes beyond 60 months as dictated to them by their regulators.

Quote:

She said its generally 16% of the balance for a monthly payment which would be way to high
Not sure why you were told this. That is not the norm for reduced payment plans with citi. Your prior payment of 260.00 a month you mentioned you were paying would be lower than what she told you. Weird....

Quote:
Ok so if they sue is this a definate?
No. It is a real risk though. Banks can sue anytime for unpaid debt. It is uncommon for that to occur in the first 6 months. The risk of suit generally begins after charge off and increases from there.

Quote:
Plus doesnt it get bounced around to collection agencies after the 90 days?
No. At least not like a pinball. Most larger credit card issuers work late accounts with internal departments for the first 3 to 6 months. Credit card collection account assignments tend to "bounce around" in 60 or 90 day increments.

Quote:
If they ask to settle do they give payment plans?
Pre-chargeoff revolving credit card settlements typically do not exceed 94 day payment terms with an original credit. Post charge-off settlements are where longer terms are available - when they are.

Quote:
This sucks!!
Agreed.

[QUOTE]I also thought charge off was when its given to a collection agency and then I would have to try to settle with them where my offers would be lower than 50%[/QUOTE]Charge off generally leads to the account being placed in one of three buckets:


  • Assignment collection agency
  • Debt sold off to a junk debt buyer
  • Placed with an attorney collector

Lower than 45% with citi probably wont happen. It is unlikely if the account is placed with an attorney.


Now. After aaaalllllll of that being said, citi can be a little bipolar. They do sometimes go below 45%. They do sometimes allow assignee collection agencies to accept less and over longer payment terms.

It is best to plan around the trends.


lrhall41

Submitted by MichaelBovee on Fri, 04/06/2012 - 13:08

( Posts: 125 | Credits: )


Thank you for clearing this up. I just diddnt know what charge off was. I read alot of people on here trying to avoid it and it got me nervous not knowing what it was. Plus the days i was wondering as i read people talking about when it goes to charge off and i wanted to know what the max days it was when it goes to a collection agency. My scenario is simple keep the house, new baby, truck payment. Card wife worked up and we are just paying the mortgage on time but hitting the credit line everyweek. Opps yeah i got 60k in student loans....

Thanks and I guess im just gonna wait it out hopefully when it leaves citis internal collections another collection company will give me a better settlement than citi.


lrhall41

Submitted by loudobbsss on Sat, 04/07/2012 - 06:37

( Posts: 20 | Credits: )