Trapped In Credit Debt

[wmnondrise]

What is the name of your state? Florida

I contacted American express on 4/15/2008 to let them know that I was having problems with my payments, even though I had not fallen behind yet. My debt was about $14K and my interest was 4.99%. I kept detailed records of my attempts to get on a payment plan and/or settle the account. There are over 20 documented communications via certified mail, secure e-mails, and phone calls. AMEX denied all of my requests initially because I had not fallen behind and my interest rates were very low. I paid my bill through Sept 2008, but was unable to continue due to financial hardships. I then made good faith payments in hopes of reaching an agreement with AMEX. They continued to decline all of my offers saying my payment plan was unreasonable ($100 per month) and my settlement offer was too low ($5000). Now they are taking me to court. How can I defend myself? I did not make purchases, only used the card when I opened it for one balance transfer. Also, they initially only approved me for $2,000 but I told them I needed to consolidate and they increased my limit to $20,000, instantaneously.

[ShyCat]

How can I defend myself?

It appears you have no defense, based on your posted information. They are not required to accept your suggested payment plans or settlement offers. Per the credit card agreement, they can and will pursue all legal means to collect the money that you borrowed from them, plus interest and collection/legal fees.

I did not make purchases, only used the card when I opened it for one balance transfer.

So?

Also, they initially only approved me for $2,000 but I told them I needed to consolidate and they increased my limit to $20,000, instantaneously.

Again, so?

[bigun]

They likely would have accepted $5K or so in a lump sum. Noway they'll take a $100/month until you hit the settlement mark.

All I can suggest is, either offering a lump sum or, look at the totality of your situation and see if bankruptcy is a viable alternative.