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Credit Card vs Collector

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Cmdl

Member
Louisiana : Credit card company agreed to settle my $11k credit card debt for under $7k. I was making monthly payments and only have until February 2020 to finish. My June payment was credited back to me in July then I was sent to collections July 19th. I went back and forth with credit card company for weeks. They had no reason for this stating simply they did not receive a payment. After contacting my bank ( since I paid thru my online banking) and my bank said the payment was returned due to information mismatch. I filed an appeal which the credit card company. I have not heard anything from them. No phone calls nor any mail stating the status of my appeal. I received a letter from the law firm attempting to collect $7k which would be the orginal amount owed since I started paying it off. I can provide the bank statment showing that the credit card company reimbursed me etc. Should I get a lawyer? I want to resume my payments as scheduled and finish paying it off as planned. I have never had any debt before my divorce. Thanks
 


quincy

Senior Member
Louisiana : Credit card company agreed to settle my $11k credit card debt for under $7k. I was making monthly payments and only have until February 2020 to finish. My June payment was credited back to me in July then I was sent to collections July 19th. I went back and forth with credit card company for weeks. They had no reason for this stating simply they did not receive a payment. After contacting my bank ( since I paid thru my online banking) and my bank said the payment was returned due to information mismatch. I filed an appeal which the credit card company. I have not heard anything from them. No phone calls nor any mail stating the status of my appeal. I received a letter from the law firm attempting to collect $7k which would be the orginal amount owed since I started paying it off. I can provide the bank statment showing that the credit card company reimbursed me etc. Should I get a lawyer? I want to resume my payments as scheduled and finish paying it off as planned. I have never had any debt before my divorce. Thanks
Was your payment agreement in writing and signed?
 

quincy

Senior Member
So you have nothing in writing showing that the credit card company agreed to settle the $11,000 debt for $7,000?
 

quincy

Senior Member
Unfortunely I don't. I sound so foolish.
Not foolish so much as trusting.

And most debt collectors cannot be trusted.

Your payments essentially have kept the statute of limitations for collecting on the debt a nonissue for the credit card company. As long as you continued to pay on the debt, the credit card company kept open the option of filing suit to collect the balance owing. With no new written agreement to replace your original written agreement, anything you paid that was less than the original agreed upon payment was a breach of the original contract terms.

You could find yourself served with a summons and complaint, indicating that the credit card company is looking to collect all that is owed by any means necessary (wage garnishment, asset attachment).

I am not sure you will be able to prove an enforceable alternate payment agreement was made.
 

Cmdl

Member
I suppose if I had the money for a lawyer I would use it to pay off card. There's a thought. : ) Where should I go from here? Thanks for your advice btw.
 

Mass_Shyster

Senior Member
Take your monthly payments and put them aside. In February, when you have all the money, call them up and offer to pay the balance of the $7K you agreed to.
 

quincy

Senior Member
I suppose if I had the money for a lawyer I would use it to pay off card. There's a thought. : ) Where should I go from here? Thanks for your advice btw.
In the “Debt Collection” section of the forum, there is a “sticky note thread” written by a former debt collector who is now an attorney. The tips in the thread on “Negotiating a Settlement” might be helpful to you when trying to come to a new agreement with the credit card company. You might be able to avoid a lawsuit and a judgment against you.

It certainly would help if you had a lump sum payment you could make. I understand, however, that if you had a lump sum payment you could make, you wouldn’t be in the position you now find yourself in. :)

The bottom line is that you have a debt that you (apparently) owe and no defense. The credit card company does not have to accept anything less than the full amount that is owed. Your goal should probably be to make the credit card company go away by paying just enough to make the company happy.

IF you DO come to a lump-sum agreement or other payment arrangement, make SURE you get the agreement in writing and signed by the company.

Good luck.
 

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