Credit card problem - please help

[ssphoenix]

We've tried to work with these people for several months but due to difficult times we weren't able. They are asking way too much money to settle. The account has gone to collection and I think soon we will get sued. I have no way of paying. I offer a lower payment but they did not take it. Very greedy people. I've worked with other credit cards and the response was very different.

What options do we have? Thanks for any advice.

[formercap1agent]

Some banks are more forgiving than others. I do remember from working for them that Capital One is not lenient at all, and neither is American Express, so if you owe either of them you may have to go into bankruptcy as they won't budge. Look on the good side -- if you go bankrupt you know you won't have to pay any of it back, they can't touch you.

I know it sounds harsh, but when you borrow money you are expected to pay it back under the lender's terms.

[Jeanie]

I agree, you use the card(s) knowing you have to eventually pay back then you should not expect them to be lenient. If you can't pay then file bankruptcy and learn from this mistake and NEVER do it again

Good Luck to you!

~Jeanie

[ssphoenix]

Evidently you both must be working together and for the wrong side because I can’t imagine your answer.

[formercap1agent]

No, I do not know Jeanie at all. All my comments on this board are based on what I have seen during my experience as a former customer service agent of Capital One. I know they are not lenient and don't just "forgive" debt or "settle" without a fight. If those other cards are willing to work with you and if you have some available credit, maybe try to get a balance transfer deal and pay off the card that is hassling you? Problem is, they've been pulling your credit report MONTHLY as soon as they sense trouble and they know you can't do that, they know they have you on the ropes. That's what Capital One does...


As for Amex, I know people who have run into trouble with them; let's just say Amex is the quickest to send your card to collections and the first to threaten lawsuits. And from those people's experiences I'll give the following advice:

What I can say is, if you know you're going to go bankrupt you might as well take advantage of the situation -- go max out all your cards first since you'll never have to pay it back. Buy what you'll need to ride out the 7 years (good computer, home improvements, new appliances), hell, get a car if you've been holding off on such a purchase (as long as you keep making payments on the car it won't be repo'ed... and since you won't have any of those credit cards to pay on anymore, those car payments will be easier!!!), take out cash advances on whatever remaining available credit there is, and make sure you open a savings or checking account with a bank you do not have a credit card with, and move all your cash there. Otherwise, say you have a Capital One checking account with a $5000 balance and you default on your Cap One Visa with a $10,000 balance. You can bet Cap One will be emptying your bank account to try to cut their losses. SO don't let any of the banks do this to you, move your money to a bank you don't have a loan/credit card with!


Once you've done all that, the trap is set. Those cards are all going to be overlimit, past due, and they'll start tacking on them fees and accruing interest. One or two accounts to go collections, maybe Amex has some bogus "lawyer" letter sent to you as a final threat...You declare bankruptcy, done...

Do research bankruptcy law first before trying any of this, as it really isn't a laughing matter at all. But definitely play your cards right and you'll come out of it better than you were going in.

[Jeanie]

It just makes sense that why would credit card companies be lenient when YOU agreed to pay the debts back. It has nothing to do whose side I am on and not on. I have had credit cards in the past and still do and just know that whatever amount I use on those cards have to be paid back on MY account and there is nothing that states in their agreement that they should be lenient.

All in all, hope things go well for you!

~Jeanie

[ssphoenix]

I never asked for leniency. You both brought this up and had nothing to do with my case. I think I am passed that. We, I and the collection agency went back and forth in trying to agree on a reasonable amount. A month ago I agreed to pay half of the balance to settle the account which is more then a fair price. They didn't agree. Now I cannot even do that and of course they are pulling the old fashion scare tactics by suing.

Considering the amount in question, filing bankrupts would be stupid. Yet, I cannot pay the amount on their terms.

I don't need pep talks about how I should learn from my mistakes and pay the balance. I can get that from my mother. Please consider their accounting practice and you would realize that CCs are a bunch of crooks. What happened with Real Estate will soon happen with the Credit Cards industry. I wish it will happen sooner.

Now, I’d like to get some info on should I get sued what to expect. What documents I need to provide. As I said bankruptcy is not an option for me.
Can they really send me to jail if I have proof that I tried my hardest to work with them. Once again I want to make sure I say what happened: We’ve agreed on the amount (half of the balance), but then a few day later I‘ve received a letter saying that they will not take the offer after all. I don’t want to play this game. I just got a call from them saying that they will go ahead with the lawsuit. I don’t believe them because the amount in questions is small enough to cover only a few hours of a lawyers fee.

Again, thanks for your valuable info.

[Jeanie]

They can do what they want considering this. The reason they can is because you applied and signed to their agreements - which is why I keep telling you that they don't need to be lenient with you (as you say... "We, I and the collection agency went back and forth in trying to agree on a reasonable amount."... is in other terms being lenient to you because you are trying to get out of the WHOLE amount owed). I am not trying to be rude as I feel you are implying but, do want you to know as well, if they want to pursue this in court and such they can because you agreed to their credit card terms from the day you applied for it.

Good Luck to you and no bankruptcy is not stupid as I know people in person who have done it and within 2 years are now rebuilding their credit (and not with the credit cards that you pay a yearly fee for, high interest rates, etc.). Just have to find the right companies willing to give the chance (as they would if you had NO credit).

~Jeanie

[formercap1agent]

OK, you wrote: "Considering the amount in question, filing bankrupts would be stupid. Yet, I cannot pay the amount on their terms."

It sounds like you're talking out both sides of your mouth here. "Considering the amount in question" suggests it's such a small balance you'd be cutting off your nose to spite your face if you went bankrupt. Then you say "I cannot pay the amount on their terms." You contradicted yourself there. If the amount is so small, by your definition, you should be able to pay them somehow. Again, if you have some available credit on another card, or could get a home equity loan, do it to get these guys off your back. Since they've shown they're not going to work with you, they've really left you no choice but to pay it off. Better to transfer their balance to a creditor who MIGHT work with you later and/or has better terms/lower interest.

As Jeanie points out, there is nothing in the law that says they "have" to allow you to settle for half the balance. Sorry if it sounds harsh but that's reality.

They likely won't take you to court, they'd elect arbitration as per the terms of your contract with them (see my thread to the Capital One customer who feels "ripped off" for more on that), and you will definitely lose in that case, and you'll never see your day in court (i.e. you won't be able to stall it in the legal system; they'll set an arbitration date and will decide against you whether you show up or not). Arbitration favors the banks, and by signing and using their card you have agreed to it already, with no recourse.

As Jeanie said, bankruptcy is not stupid. Even Walt Disney declared bankruptcy, something few people know. When he became a success did anybody know nor care that he was bankrupt once? Not saying you'll come out of it a billionaire or anything like that, but hey, it didn't hurt him.

As for your mini-rant against real estate and the credit card industry, I guess what you're saying is you hope everybody goes bankrupt so that the credit cards go out of business? Because that's what it would take -- everybody suddenly defaulting at the same time. And you **KNOW** that's unrealistic.

[Jeanie]

Well said formercap1agent...

~Jeanie