Credit card notifications and charge off

[stalin73]

California,

Are credit card companies obligated to inform clients of action that will be taken with an account, such as that its going to be sent to collection or charged off? My CC company did NOT send my statements for 3 months due to a 'system's error', which they acknowledged in a letter. I did receive the '4th statement' which made no reference to actions or charge off. I made the payment before the due date on that 4th statement. However, in the interim they charged-off my account and it is being reported to Credit Bureaus. I'm willing to pay my balance, but disputing the charge off. What are my options? I've received several letters apologizing for the system error and inconvenience, but they do not want to reverse the charge-off. I read somewhere that they are supposed to inform the cardholder of actions, either as a note on the statement or in a letter. Because they did NOT send the statements, obviosly they failed to notify me prior to the action.

[Debt Guy]

I read somewhere that they are supposed to inform the cardholder of actions, either as a note on the statement or in a letter.

Where did you read this? While it is certainly typical that you would receive numerous collection calls, I don't think they are required to do anything.

My CC company did NOT send my statements for 3 months due to a 'system's error'

I presume you realized you were not getting statements and that you knew you owed money. Why didn't you call them?

I've received several letters apologizing for the system error and inconvenience, but they do not want to reverse the charge-off.

My guess is they realize they made a mistake but also believe that you just sat there waiting to see if they would ever catch up with you. In that case, they feel you should share the fault.

My recommenation would be to write a polite letter to the president of the credit card company, enclose copies of the letters of apology and ask that as a gesture of goodwill the delinquency be removed from the credit report. Your request will carry more weight if you pay what you owe first.

[stalin73]

Thank you,

I'm trying to track down where I read that CC companies are supposed to inform cardholders of actions that will be taken. This notification is usually included in the card statement (but can also be a letter).

I'm afraid of paying the debt, because then I wouldnt have any leverage. Its only $300.

Thanks
Stalin

[debtcollector`]

Originally Posted by stalin73

Thank you,

I'm trying to track down where I read that CC companies are supposed to inform cardholders of actions that will be taken. This notification is usually included in the card statement (but can also be a letter).

I'm afraid of paying the debt, because then I wouldnt have any leverage. Its only $300.

Thanks
Stalin

What could possibly make you think you have any leverage now?

[stalin73]

I really dont have any leverage...

but perhaps we can stick to the main point of the question... whether Credit Cards are supposed to inform/notify cardholders of actions that will be taken. Usually they would say that they notified the card holder via a letter or the statement, but in my case, they never sent the statements.

Thanks

[debtcollector`]

Originally Posted by stalin73

I really dont have any leverage...

but perhaps we can stick to the main point of the question... whether Credit Cards are supposed to inform/notify cardholders of actions that will be taken. Usually they would say that they notified the card holder via a letter or the statement, but in my case, they never sent the statements.

Thanks

asked and answered

[Ladynred]

whether Credit Cards are supposed to inform/notify cardholders of actions that will be taken.

No, they do not. What happens when payments are not made is spelled out in your card holder agreement - that incomprehensible 35-page 2 point text document. Look for the section that deals with default, that is all the notification consumers get and all they have to provide.

[stalin73]

Thank you...
Appreciate a succinct and direct response. Not the usual sarcasm some others employ.
Thanks