Getting it in writing - when they won't!

[doingright]

What is the name of your state? NJ

My debt with AMEX amounts to just under $4K. It has sat for 3 years without me making any payments. They have recently sent me a letter for a settlement offer for 25% of the balance. After doing some research, I decided that I didn't want to take that because I want to pay it off and have it paid with $0 balance. So, after some negotiation, I was told that they would accept $150/month until the amount is paid - no interest charges or fees, and I can pay more when I can afford it. They wanted to take my information over the phone (so they could automatically deduct from my checking every month), but I would not let them because I wanted to see the terms in writing. They said they would fax to me the terms in writing, and they didn't. When I called the account manager today, she informed me that her manager said that they could not put it in writing because it was over a 6 month period of time. In other words, because this would take me over 3 years to pay, they would not state the agreed to terms in writing. I told her that was ludicrous - what would prevent them from changing in midstream and starting to tack on interest because they felt like it and I didn't get it in writing? I was very polite when I told her that I wanted to speak with someone in management to get this in writing. She said she would have someone call me back.
Now - What do I do if they keep refusing to put it in writing? Do I threaten to file bankruptcy, and then they won't get anything? Should I retain a lawyer? Should I write a letter to them explaining the terms that were explained to me, making it known that I am attempting to do the right thing, but they are not willing to work with me?

Thank you for any advice!

 

[dequeendistress]

Basically you have no agreement with them at this point. I do not believe you will ever receive a written agreement from them with the terms you have defined. Why not just make payments as you were obligated to do when you opened the account. You are lucky that they have not filed for a judgement and I would be looking for that to happen in the near future.

OHH and a bit of advice--do not give your bank account information to them over the phone or otherwise set up automatic drafts.

 

[doingright]

Thank You!

I agree that I won't see a written agreement from them. I'm afraid if I just start making payments again, they will do whatever they can to start adding on interest charges and accrued interest. I think I may get CCCS involved and opt for a DMP for this and 2 other accounts.

Thanks again!

 

[doingright]

Another account...

Here's another little issue if anyone has any thoughts on this:

I have finally responded to a lawsuit for an outstanding debt of 7K. In speaking with the law firm, they are sending me a contract to pay this off at $200 at 3% interest (daily, not compounded - so they say), and I can pay more when I can. They also told me that there will be no other fees attached. Should I just accept the contract, or am I being taken? Is there a way they will settle for a percentage of that 7K (minus all incurred fees and interest from the date of last payment)if I get a lawyer involved?
I want to do the right thing, but I also want to protect my own interests.


Thanks!

 

[bearfootball]

My debt with AMEX amounts to just under $4K. It has sat for 3 years without me making any payments. They have recently sent me a letter for a settlement offer for 25% of the balance. After doing some research, I decided that I didn't want to take that because I want to pay it off and have it paid with $0 balance.

What? Why do you want to pay it off? Take the 25% offer.
Also, I'd question this CA. If they can't follow through with a request you've made, then they might just take your money and run.

 

[doingright]

Thanks Bear!
I believe, at least from what I read and believe to understand, is that a debt that is "settled" for less than the actual debt, reflects more poorly on a credit report than paying off the debt to a zero balance - then it is "paid in full". I could be wrong. But in any event, Amex has not gotten back to me as promised.
I feel as if they are calculating their next move and are planning on socking it to me with accrued fees and interest charges! {nervously laughing}