Advice Needed ASAP

lizzy24 · 07-12-2007, 11:04 PM

Originally Posted by lizzy24
Hi there,

I'm so glad I found this site. I am in a very tough situation...Here it is. I had very decent credit above a 650 Fico score until about a year ago I had to let 4 of my credit cards go delinquent due to my husband was laid off and so we were down to one income (mine) and so I had to prioritize the bills and continue to pay the mortgage, & other expenses (light bill, etc). When I stopped making payments on the credit cards the creditors started calling and to make a long story short I had settled with 3 creditors at the end of June, but the 4th creditor which is Citi Cards charged off my account on 6/27/07, they were going to settle for 5700.00. The original balance owed to them was 12K, but when I stopped paying it went upto 13K due to interest and penalties. I was able to get the money from a Credit Card that my husband was able to get from his Credit Union in the amount of 12K (His credit is still decent) to pay off the settlements but didn't get the card on time before the charge off date so now the Citi Card account has been referred to a collection agency "United Recovery Services" and they are not very nice and gave me 2 options: they claim that Citi will settle for a lump sum payment of 10,500. or the only other option is a payment arrangement of down payment of 5700. and monthly payments of 150 to pay off the 13K. We don't have the lump sum they want but are looking at possibly the 2nd option. We haven't gotten back to them yet, but need to get back to them by tomorrow 7/13. I need advice, should we just go with the 2nd option and will we be sued if we don't respond. We do own a home and we don't want a lien and I don't want to go to court. I need advice Fast. I know this is a lot of information, but I really need help! Thank you for any advice from this post..

Pale Rider · 07-12-2007, 11:10 PM

Are you able to still negotiate with Citi, or do they say you have to deal with the collector?

Have you told the collector that Citi was willing to settle for $5700?

The most important thing in any settlement is to get absolutely everything in writing. Do not take their word for anything. Do not give them any financial or bank info. Pay them with money orders.

lizzy24 · 07-12-2007, 11:27 PM

Hi Palerider,

Thanks for your response. I called Citi and they claim they don't have my account info. anymore and that I would have to deal with the collection agency. When the Collection Agency called me I told them that Citi wanted to settle for 5700, but they said that settlement was no longer available to me. Thanks for your advice and I will do what you suggested.

Enigma · 07-12-2007, 11:32 PM

Citi said they no longer have your info???

Have you gotten anything in writing from the collection agency?

You are under no pressure to respond to the collection agency by any date or time.

What state are you in?

Pale Rider · 07-12-2007, 11:40 PM

They may have sold the debt if they are claiming they no longer have info on a recent charge off.

jlynn · 07-12-2007, 11:54 PM

It would be odd for Citi to have sold it off that fast - especially that large a debt.
Citi likes to sue in their own name.

neil5623 · 07-13-2007, 12:02 AM

That is strange they would sell it that soon. It normally takes 6 months for them to dump a charge off. At least it is not with a collection ATTORNEY. I had that experience in the worst way recently. For a lot less. do NOT tell them to cease all contact - that was my mistake. Insist on PROPER VALIDATION/VERIFICATION (I will let the more experienced members continue with that) before agreeing in writing to anything.

hannah · 07-13-2007, 08:58 AM

Do not talk to this collection agency today! Do not answer the phone. Send a CMRRR letter today to them asking for validation of the debt. They are wanting you to settle for this higher amount because they will get a larger commission. Boo hoo if they don't. And if you don't want them calling you, include a line saying that it is "inconvenient to call you at any time at any phone number" that you wish to communicate only by mail.

Also today send a letter to Citi. Say that you are willing (if you still are) to settle for the agreed upon $5700 but that in order for you to do so, you wish to only deal with them directly not their collection agency. Send it CMRRR as well. Include your account number, etc so they can identify you. The reason that they don't want to deal with you is that they have an agreement with the CA but they will if you don't deal with the CA. You don't have to deal with the CA.

lizzy24 · 07-13-2007, 02:07 PM

Thanks for your responses Pale Rider, Enigma, jlynn, neil5623, & hannah. It really helps to be able to share this information with those who understand about this credit debt situation and I am definitely going to heed your advice. Beginning with writing a letter to Citi and requesting the validation / verification from the CA.

Thanks so much all for the info. I feel empowered to move forward. I will keep you all posted on my credit nightmare and what the outcome with Citi will be.

Pale Rider · 07-13-2007, 07:09 PM

Quote:

Originally Posted by hannah

Also today send a letter to Citi. Say that you are willing (if you still are) to settle for the agreed upon $5700 but that in order for you to do so, you wish to only deal with them directly not their collection agency. Send it CMRRR as well. Include your account number, etc so they can identify you. The reason that they don't want to deal with you is that they have an agreement with the CA but they will if you don't deal with the CA. You don't have to deal with the CA.

Lizzy,

Also include any violations or harrassment by the CA. Let them know you want to deal directly, because the CA is not acting right (based on your saying above that the collector was "not nice").