Thoughts on how to settle.

[Randolph198]

What is the name of your state? KS

So - back in college I was an idiot, and got myself into some nasty credit card debt - for the last 2 years, I've been working my tail off trying to settle up with a number of companies (through a settlement agency) - and have taken care of a fair amount of it. However, I still have one outstanding balance of $5k with Citibank.

I received a call Friday from an attorney/collection agency simply saying "We're suing you in the state of Kentucky" - I was driving at the time, so I told them I'd like to discuss settlement as opposed to going to court, but I wanted to schedule a callback time this week to make that happen, as I was driving and on my way to a client meeting. She simply said "You don't seem to take this seriously, so I'll see you in court".

I wish I'd caught the name of the agency - so I could try to contact htem again. However, I have the following questions:

- Can they file against me in KY, since I haven't lived there since 2004 (Moved to TN - then to KS a few weeks ago)
- I'm assuming they probably can - so, how can I find out if I receive a summons in KY? I don't know anyone who lives at my old address there.
- Could I settle to avoid court after receiving the summons (I'm assuming with the attorney's contact info on it) - without going to court in KY?
- If the worst happens, and they recieve a default judgement - should/can I open a checking account with a KS bank, to make sure I have money to live on - in case my acocunts are frozen?

Any help would be appreciated - I just really want to pay them and get this taken care of, but I'm not sure where to go from here on that.

Just another note - I'm self employed (contractor) - and I need to keep some sort of cash flow to make sure I can continue to operate, get out of this mess, and keep myself out of it in the future.

 

[AmarieNorton]

I wish I'd caught the name of the agency

If you were to pull a copy of your credit report (remember that by law you get one free from each of the three agencies every year) it would tell you the name of the agency.

 

[Randolph198]

all ready did that - there's nothing on there - except the original ATT Universal/Citibank deliquent account. No collection agencies at all.

Weirdly enough - that account is only on one - Transunion. the other two have NO record of the debt - which I guess is a good thing, credit score wise.

 

[AmarieNorton]

all ready did that - there's nothing on there - except the original ATT Universal/Citibank deliquent account. No collection agencies at all.

Weirdly enough - that account is only on one - Transunion. the other two have NO record of the debt - which I guess is a good thing, credit score wise.

Is the debt really yours? I did a sneak peak at some of your previous posts and it looks like they've been trying to collect since 2003 (correct me if I'm wrong) so I would think that if they've been after you this long, it would be on your credit report by now. Seems strange that it isn't.

 

[Randolph198]

I DID settle one after a call from an attorney/CA (who was amazingly nice and helpful - as far as these folks go) -

now - I had a couple of citibank accounts - so I tihnk this is a different one. I'll call the previous CA, and see if they can provide me with the account # for that one. This previous attorney didn't give an account #, but did give the balance, and that it was a citibank card.

guess I shouldn't assume they're doing the right thing, eh?

 

[Randolph198]

actually - the one I settled was my Bank one. So - this is the first time I've been contacted about this account in a couple of years.

sorry for the confusion!

 

[Chien]

Q. Can they file against me in KY, since I haven't lived there since 2004 (Moved to TN - then to KS a few weeks ago)

A. They can and probably will (if they file at all for the amount stated), if they have reason to believe that's still your residence. They're required to file in your place of residence (but read on).

Q. I'm assuming they probably can (yes, if they don't know any better) - so, how can I find out if I receive a summons in KY? I don't know anyone who lives at my old address there.

A. Let's come back to that.

Q. Could I settle to avoid court after receiving the summons (I'm assuming with the attorney's contact info on it) - without going to court in KY?

A. Anything's possible and you won't know until you try. It's more advantageous for both sides to effect a voluntary settlement than to incur the inconvenience and expense of a trial and then involuntary enforcement of a judgment.

Q. If the worst happens, and they recieve a default judgement - should/can I open a checking account with a KS bank, to make sure I have money to live on - in case my acocunts are frozen?

A. Probably a good idea. Are you implying that you still have an account in a KY bank?

If you don't know who called you, presumably you haven't been contacted by (forwrded) mail. If you really want to resolve it, contact Citibank. Tell them that you've just learned that you have an outstanding obligation and that you know that you can't discuss it with them, but ask for the name of the CA that has been trying to contact (in a state in which you no longer reside) so that you can discuss payment with the right party.

I expect that you'll get the information and then talk with the CA. Tell them you no longer reside in KY (but don't say where now). Tell them what you've posted here: that you've worked hard to clear up old debt, have been successful, just learned of this and want to do the same. Go from there.

If you don't get the information that you need from the OC, you may get sued and get a default judgment in KY. If there are no assets in KY, that's a deadend, until they locate you and try to domesticate the judgment in TN or wherever. If they do, you presumably have a defense based on defective service in KY but, once you get that judgment vacated, the whole thing will start again in TN. Don't know what to tell you about that until it happens, but you're best bet is to work hard and try the foregoing steps to avoid it. You won't dodge a judgment forever (especially working in a profession that may require licensing, certification, name on public records etc.), and clearing it up later could require additional cost and inconvenience, plus more interest added to the original debt.

 

[Randolph198]

Chien -

Thanks for the great advice. I'll clear up a few questions you had:

A. Probably a good idea. Are you implying that you still have an account in a KY bank?

* - It's a regional bank. USBank. Does that affect their ability to freeze my funds?

Anyway - I'll be calling Citibank to try to get the info.

I'm very surprised at the lack of activity from this CA - which is one reason I'm worried.

 

[Chien]

Q. It's a regional bank. USBank. Does that affect their ability to freeze my funds?

A. It would be interesting to know if KY has branch banking but, if the question is whether they could reach a KS or TN USBank account via a judgment in KY, even if KY "branchless", the answer is no.

 

[TigerD]

Seemed like a good tiem and place to repost.

How to negotiate a settlement:

1. Plan your call and set your goals before calling.
If you want to settle for 50% start negotiating at 25%.

2. Make no solid agreement on your first phone call.

3. Make sure you have the money to pay an agreed settlement immedly

4. Sit at a table with a notepad. Take notes of everything being said. (The collector is I promise you)

5. When you are talking to the collector, remember that the money you will be paying this is with is being given to you by your wife's uncle or something like that -- he has offered you $x - with x being your starting point in the negotiations.

6. Remember X is all the money you have to work with on this call. If the negotiation goes higher and you hit your goal tell them you have to have it in writing so you can bring it to your uncle and ask for more.

7. Make no promise to pay without the written settlement agreement. Don't pay or make a promise to pay on the first call.

8. Remember you are dealing with trained negotiators. If the collector becomes excited or you feel is getting abusive simply say, "Obviously we both want to take care of this, but I feel you and I aren't communicating well. May please speak with your supervisor?

9. It will take more than one call to do this right. You will need to take copious notes and make sure you get the names of who you talk to.

10. If you are concerned that you will not be able to handle the negotiation yourself, there are professional negotiators, but that is a pricey alternative and the possibility of the settlement going your way when you are paying for representation is much lower.

DC

 

[Randolph198]

awesome notes DC - thanks for the help!