I have 1 hour to make a decision

Discussion in 'The Watercooler' started by klmno, Jan 30, 2010.

  1. klmno

    klmno Active Member

    For one CC I owe, here's my choice- I either call and give my check acct number to make a payment today or it gets written off as bad debt and turned over to a collector and/or attnys. At least that is what they have told me.

    I will not know until next week if I will be filing for bankruptcy or not. Or if I will pursue debt consolidation. But if I let it get turned over then pursue one of these avenues, will it make any difference at all if I don't make this payment today and the company goes and follows thru with what they said?
     
  2. JJJ

    JJJ Active Member

    I don't think so. Try www.freeadvice.com (click on community in the far upper right). They have a bankruptcy section.
     
  3. nvts

    nvts Active Member

    I remember reading at one point that they can't mess with your credit if you give them any type of payment. It's sort of a "good faith" thing. Can you give them authorization for $10.00 and tell them that you'll get back to them? Ask that one on JJJ's website (which I have now bookmarked! ;))!!

    Beth
     
  4. klmno

    klmno Active Member

    They told me I had to make a min payment- 115. I'm a little conncerned about giving them my check acct number Can they try to get money from it in the future?)- but I don't want my credit to get worse than it has to either.

    CC debt is unsecured debt but I don't know what is worse for my crdeit- letting it go or filiing BK.
     
  5. donna723

    donna723 Well-Known Member

    Personally, I think they're bluffing. And I sure wouldn't give them my bank account number!
     
  6. klmno

    klmno Active Member

    This is the debt that I haven't paid on for the longest time. It goes to 120 days past due after today. That is what there saying makes a big difference. I don't know if that's true. But what is odd and seems like it might be BS is that they told me if I don't make this payment it means it gets written off as bad debt.

    But then they said it would get turned over to collections or attnys. Well that seems inconcistent to me. If it's written off as bad debt that would forever have my credit ruined then being unsecured debt, they wouldn't be saying that it will be turned over to others would they?
     
  7. tiredmommy

    tiredmommy Site Moderator

    Yes... they write it off and another company will try to make good on collecting debt rather than the issuing bank. It shows on their records as a bad debt until the debt collector collects from you and turns the money over to the bank minus their fee.
     
  8. klmno

    klmno Active Member

    TM, do you think I should pay it then?
     
  9. witzend

    witzend Well-Known Member

    Not with your checking account number.
     
  10. donna723

    donna723 Well-Known Member

    They probably mean that THEY are writing it off by selling the debt to a collection agency. But if it's already 120 days in arrears, it has probably already affected your credit either way.

    Are you absolutely sure that you are dealing with the CC company and not with a collection agency already? Pressuring you to pay a certain amount in a very short period of time is a tactic they use - they probably get a commission on what they collect. In truth, they should welcome the offer of a payment plan where it will eventually be paid off, rather than making threats. And if you give them your bank account number, how do you know they will only take out the amount you authorized them to? Doing it on the phone, you have no proof of anything.
     
  11. klmno

    klmno Active Member

    That's the only way they will take it- however, there's not much money in there. I've only been putting enough in to cover bills I'm paying by check. Let's just say there's a little cash somewhere else. I'm thinking maybe I should pay it. I'll open another acct after I get paid from my job.
     
  12. klmno

    klmno Active Member

    No and that is a very good point.

    Maybe I should call the bank itself-if they say they've already turned it over to a collections agency then does it matter?

    I just need to know what to do. If I file BK does any of this matter?

    I'm sure my credit is effected- it's a matter of degree and if there's still any chance of making up for some of it in the future.
     
  13. svengandhi

    svengandhi Well-Known Member

    Just remember that if it is written off as a bad debt, the IRS considers it to be income to you - you will get a 1099G (or something like that) and you will have to pay taxes on the amount that is "forgiven."

    Whatever you do, don't tell the creditor that you are considering bankruptcy. Even if they do now turn it over to a credit collection agency, you could have your bankruptcy filed first. However, under the current rules, I am not sure that you can escape the cc debt or just restructure it.

    Good luck.
     
  14. totoro

    totoro Mom? What's a GFG?

    What did you decide? .
    Sorry you are faced with these decisions.
    I don't think it is ever easy regardless of the situation. You have had it seems every thing thrown at you. Just doesn't stop
     
  15. timer lady

    timer lady Queen of Hearts

    Given only an hour is bogus. Additionally, you should have had a mailed statement by a collection agency stating what they are trying to collect.

    Collection agents are paid, at least in part, by commission. The tactic being used is, I believe, illegal. They must accept any payment you can make - not an amount dictated by them. Donna is right - your credit is likely already affected.

    Saying all of the above, you aren't the only one unemployed & in this boat. I'm not saying not to pay your debt; pay what you can afford on a timely basis. Pay to the original bank to whom the debt is owed, not the collection agency. Work with the CC company in person.
     
  16. DammitJanet

    DammitJanet Well-Known Member Staff Member

    Well, years ago I had a CC that I never paid off. Never. It was one of those ones that had a 300 buck limit and they charged you 150 to start it. yeah...stupid. I think I charged maybe 25 bucks on it besides the 150 they made me supposedly pay to start it. I never did may a payment on it ever and they came after me for years. I just never paid a dime. Wrong I know.

    Its not on my credit report and no one ever sent me anything to report it as income.
     
  17. klmno

    klmno Active Member

    They were supposed to call between 3:00 and 4:00. They didn't call, I didn't pay. I thought about it and do think I was already working with collectors and the guy on CNN (for whatever that's worth) has repeatedly said that once you are to a point where you are behind and need to renogiate because they are then trying to charge 28% interest, NOT to pay anything until it is renogiated and in writing. So, I am waiting to see how things go with this interview tomorrow, then am going to worry about the houses/moving first. The CC situation is not my biggest worry. If I can work something out to repay with whatever money is left after dealing with a place to live, I will.
     
  18. Mattsmom277

    Mattsmom277 Active Member

    I know credit issues are handled differently in the US as they are here in Canada. But I am relieved that they didnt' phone back and pressure you further, and that you didn't make a payment beyond your limits, which was what they demanded.

    Obviously, we all know our debts are our responsabilities. Reality however is that you are in a bad position right now. I know that your credit is affecting job potential, which I'm sure is a concern of yours understandably. Yet you must live. Is your mortgage - potential foreclosure issue- on your credit report already? If that is the case, your concern for the impact on your credit in terms of this card are probably misplaced as your credit will be much more impacted by mortgage being in arrears.

    I would hate to see your financial position worsen over a unsecured credit debt. These are very trying times and never has there been a bigger number of people in the same position you are in. Knowing this, so do the credit companies and the collection agencies. I keep hearing horror stories of how far the bullying and threatening is going with creditors demanding payments and issuing forth all sorts of evil sounding backlash if the credit holder doesn't comply with their demands.

    The thing is, what happens if your house issue gets settled? Does it magically disappear from your credit report??? If it remains, your credit will affect your job potential etc anyhow. And if thats the case, what on earth have you to gain by making yourself more desperatly cash strapped right now by making a payment on this card? I realize it is probably a pride thing too, desire to pay your own debts. But it isn't like you chose this. Most people in this position right now haven't chosen this. But it is what it is. You've got to eat. You've got to find a suitable solution to your living situation. You have alot on your plate.

    Can you look into consumer protection laws for your region? I know that if you speak with someone here in Canada, they can only phone x amount of times max. per day/per week. If you request all contact by writing, they MUST comply here. They cannot contact you by telephone if you request to them to contact by mail only. This protects consumers from harrassing and illegal calls and bullying tactics that violate the law. It also ensures that they are committed to what they say since its in writing.

    Have you EVER heard of a person getting a demand for payment letter from ANY creditor, that states "You have ONE HOUR from reciept of this letter to pay XXX amount payment. You MUST pay this payment by calling our number and providing your PERSONAL BANK ACCOUNT INFORMATION TO A STRANGER. Do it NOW or XXX is going to happen to you". I mean, come on. This is not natural collection practices and these collectors, wether in house or outside collectors, prey on people in desperate financial situations and their serious fears and insecurities about their financial future and repurcussions. It is rotten. I would hate to see you fall for it.

    Frankly, I would say "Please put in WRITING that you are demanding personal banking information and a payment in ONE HOUR and what you are threatening me with". I would then go on to say "My free legal aid attorney has advised me to ask you for this in writing since he has a number of statues that he believes are being clearly violated. And he also requests that you personally, as the representative making these demands, please include your full name and your own personal banking information so when we win a lawsuit against you for illegal practices, we know which bank account to garnish". GRRRRRR!!!!!!!!!!!!!!!!!!!!!!!!!!

    (((hugs))) Things are going to get better for you. I know it. For now, take care of your basic needs before you let this stuff stress you out. You didn't choose this. It won't be fixed over night. And your focus should be on you and your difficult child and the immediate needs you have.
     
  19. DaisyFace

    DaisyFace Love me...Love me not

    K--

    I know it's a little late on this but...here it is:

    By law, CC companies MUST dump bad accounts after six months. The end.

    They often will call at the last minute and try to negotiate a settlement offer. They usually offer a pretty good deal at this point (really low interest, forgiveness of a portion of the debt, low montly payments etc). Yes, they will require your checking account info in ordet Occupational Therapist (OT) set up a regular draft for the payments.

    If you do not take the deal, the account is sold to a collection agency....who will probably immediately begin harassing the heck out of you for the full amount plus interest.

    A bankruptcy filing will make either of these (the CC co or the collection Agency) go away.

    by the way--You are not always liable for taxes on any amount forgiven. It depends upon several factors.

    --DaisyFace
     
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