Amex Settlement offer... take it or leave it?

eugene2008 · 02-17-2008, 01:26 AM

It's been about a year since my amex charged off. ($8,000 balance)

They just sent me a letter offering a 40% reduction if I pay in full.

Should I call them and try to negotiate lower or do you think this is their best offer?

What should I say when I call? Or should I not call and just wait and see if they send a better offerin the future?

Thanks!

Eugene2008

Enigma · 02-17-2008, 01:40 AM

It's generally a one time offer. Then they tend to send it to litigation.

eugene2008 · 02-17-2008, 01:45 AM

So, is it worth it to call them and attempt an even lower settlement or should I just pay up?

Do you think they would be open to a payment plan?

I'd obviously like to avoid being sued... but also want to get the best settlement possible.

????

Quote:

Originally Posted by Enigma

It's generally a one time offer. Then they tend to send it to litigation.

tommy_1812 · 02-17-2008, 10:04 AM

48 Ben Franklins should cover it and make them happy enough. Remember, they extended you 8 grand, but only expect 4800 back? That's like me loaning 8 grand to a co-worker and they give me the run around and in the end I offer to settle for 40% less. They might as well have given you that money.

You can bet their not happy about it, and that one time offer would be a wise choice. Ask them if they accept payment plans. Most places would offer some form of payment plan, especially if they know your funds are limited.

Qtip · 02-17-2008, 10:14 AM

Question here, kid of a little off topic. I know Amex has the memory of an elephant and if you ever owe them money, they will never extend credit to you until every dime owed is replaced.

In this case if eugene takes advantage of the Amex offer, will they still keep him on the black list?

hannah · 02-17-2008, 11:21 AM

Quote:

Originally Posted by Qtip

Question here, kid of a little off topic. I know Amex has the memory of an elephant and if you ever owe them money, they will never extend credit to you until every dime owed is replaced.

In this case if eugene takes advantage of the Amex offer, will they still keep him on the black list?

Yep.

And Eugene should make sure that he gets it in writing that this is settlement in full of the debt AND that they won't sell of the balance to a JDB. I would also try to negotiate them either deleting the tradeline or noting it as paid without anything on there being derogatory.

Can't answer as to whether or not they'd take payments. That payment thing didn't work so well in the past...

eugene2008 · 02-17-2008, 12:35 PM

Thanks everyone... I have decided I am going to pay it off in full tomorrow.

I plugged this into myfico simulator and it will raise my score by 20 to 40 points If I do so!

apexcrsrvc · 02-18-2008, 04:40 AM

If you're going to pay it in full, ask them about Oasis.

eugene2008 · 02-18-2008, 12:09 PM

What is "Oasis"????

Quote:

Originally Posted by apexcrsrvc

If you're going to pay it in full, ask them about Oasis.

apexcrsrvc · 02-19-2008, 04:16 AM

It is a program wherein you pay of the debt in full and they issue you an Optima card with a limit equal to the amount paid. I believe they change the old account to a positive status as well.

Pretty good deal . . .

Troy N · 02-21-2008, 12:35 PM

Having been an insider in collecting AMEX I can say, and point out a few things.

First off in most cases all "in-house" AMEX collections is outsourced.

Secondly, there is an unwritten law in bad debt collections. Believe me I know as I do it all the time. That is.. there really is no such thing as a 1 time offer. A 1 time offer is the agent/collection persons attempt to instill urgency in your head. Remember it doesn't matter if it's "in-house" or in a collection agency, the whole industry is performance commission based.

Here is the internal breakdown of how an account progresses doesn't matter if it's AMEX or any other credit card.

1. In-house agent attempts SIF the account prior to third party
2. Collection Agency will attempt to SIF the account. AMEX usually will SIF here at 75%, if you can prove hardship you can apply for a below peremter SIF,
3. After a certain amount of time the credit card company will re-assign the account (that is pull any unpaid account and give them to another agency) Guess what the 1 time offer % drops again. Usually around the 50% mark.

Rinse and repeat.

If you intend to S.I.F. Inside collectors term for settlement in full and not P.I.F, payment in full. Your bureau will reflect that. Any prior past slow payments R1-R9 will remain, but there will be a note underneath paid in full or settled in full. AMEX reports directly to the bureaus so don't ever believe anyone who says if you pay by such and such date it will avoid the negative reporting or that if you pay it will change to a R0. I used to use the R0 or what I called it as a "null" rating line all the time. It's totally bogus R0 is for new accounts.

In regards to the Oasis offers, it is an AMEX internal option to keep recoveries % high. You will be re-issued a card at a lower limit. Don't be fooled your previous bureau on the old card will be as it is, it will note paid in full, settled in full whatever with the full payment history still there and a new entry will be made to reflect the new card.

centex · 02-21-2008, 01:08 PM

Quote:

Originally Posted by Troy N

In regards to the Oasis offers, it is an AMEX internal option to keep recoveries % high. You will be re-issued a card at a lower limit. Don't be fooled your previous bureau on the old card will be as it is, it will note paid in full, settled in full whatever with the full payment history still there and a new entry will be made to reflect the new card.

Your claim notwithstanding, many who have gone through OASIS report precisely the opposite. Report was cleansed to reflect the old account as paid/closed with no delinquency, new card issued, history reflected the original membership date.

apexcrsrvc · 02-22-2008, 02:43 AM

We're not trying to fool anyone here I can assure you. As Centex stated, popular opinion is contrary to your posture with respect to Oasis reporting.

neil5623 · 02-22-2008, 10:58 AM

This may have been a different situation for me. Received a letter saing that if I paid some % of the balance, then I would be given the OPPORTUNITY TO APPLY for an Optima card.

ilovemydogs · 02-22-2008, 06:42 PM

Quote:

Originally Posted by eugene2008

Thanks everyone... I have decided I am going to pay it off in full tomorrow.

I plugged this into myfico simulator and it will raise my score by 20 to 40 points If I do so!

FWIw I had an Optima and Gold AMEX charge off in 2002 and they are STILL wanting to settle for now less than 60 percent, and telling me if I decided to pay off the whole thing(no discount) I will be back in their good graces.
I am still in SOL but I am going to wait these two out, as I do not need to have AMEX as hubby has them and I am a AU.
ILMD

eugene2008 · 02-24-2008, 02:34 PM

Ok, here is what I did... I paid off the settlement offer of $4800 of $8000

How long will it take for my credit report to reflect this?

Wondering when I should order new reports from myfico....

Thanks!