member profile picture
Posts: 4
Credits: 122.75
[Donate]

I got a call this morning from a collector for my American Express Account that is currently past due in the amount of 12,000 and I was telling him that I wanted to make arrangements with AE to stop the interest so that I could pay it off monthly but he said that they won't deal with me and that they won't even talk to a credit counseling or Management company should I use one. Does anyone know if this is true??? I really need some help here and don't know what to do...any suggestions is greatly appreciated. Thankyou...




That collector is lying. They deal with both debt management and debt settlement companies.

Sub: #1 posted on Tue, 07/08/2008 - 02:42

mobile0311 mobile0311
Moderators
(Posts: 1817 | Credits: 104.57)

Thank you very much that shined some light on my situation here...they also told me that they are the only ones I could deal with now, and that I have until 6pm today to come up with the full amount or else they are going to press on with legal actions against me. Any recommendations regarding a debt management or settlement company that has worked with American Express. I know I got myself into a hole here and at the time the credit card was my only other income so to speak. Lesson learned...just want to get out of debt and stay out of debt...Thanks again.

Sub: #2 posted on Tue, 07/08/2008 - 02:47

yeng_kong yeng_kong

(Posts: 4 | Credits: 1.23)

[quote]Option 1 : Debt Management Plan or DMP

This program is administered by a non- profit consumer credit counseling agency.Credit counseling is for people who are not overextended and thus can afford their minimum payments and just need one payment with a lower interest rate. Credit Counseling agency will be able to negotiate with all creditors to accept a lower interest rate " usually around 6%-10%", waive late fees and over limit fees and spread your payments out over 5 to 7 years. You will repay 100% of your current balance with a payment that typically runs about 3% to 4% of your total debt. If you have the ability to repay the full debt you borrowed you should do a Debt Management Plan. This program doesn`t hurt your fico score but will show on your credit report you are in a program to keep you from getting more credit until you complete the program. Once you complete the program it comes off your report as if you were never in the program. There are tons of good credit counseling counseling companies. Be sure that the counseling agency you are considering meets these credentials.

* 501(c) 3 Non profit Company
* Member of the Better Business Bureau
* ISO Certified
* Member of the American Association of Debt Management Organizations
* Certified Credit Counselors through the National Institute for Financial Counseling Education


Option: 2 Debt Settlement

Debt Settlement is a hardship program for people who can`t afford the payments for a debt management plan, can't continue paying minimum payments, can't borrow to pay off debts and don't want to file bankruptcy. If you are overextended or if your debt are already severely delinquent should you consider debt settlement.It will get you a monthly payment around half of what you would pay in a DMP and you will be out of debt usually around 24-36 months. This program does hurt your fico score because creditors won`t settlement until the account is 120 days + past due. However if you are a good candidate for this program your bills are most likely past due anyways or about to be so the fact it hurts your score would be irrelevant. This program is designed to get you out of debt fast so you will be in a prime position to start reestablishing your credit and avoid bankruptcy.

There are a lot of rip off settlement companies out there so if you are going to do the debt settlement option I strongly suggest you look up the company you are considering on the BBB to make sure they have a good track record. Also make sure they are either members of TASC or USOBA.
Here are the names of some of the most popular top companies out there with a good reputation and are members of the BBB. New Beginnings Debt Settlement LLC , Century Negotiations and Superior Debt Relief. I am not endorsing these companies but this should help point you in the right direction if you decide to do settlement.These are only a handful of good companies. There are other good companies out there but like I said make sure you research any company you are considering. I hope this helps answer some questions.[/quote]

Sub: #3 posted on Tue, 07/08/2008 - 02:56

mobile0311 mobile0311
Moderators
(Posts: 1817 | Credits: 104.57)

Thankyou very much...you don't know how much weight you've shed off my shoulder by letting me know that there is some sort of light at the end of the tunnel. I am going for option #2 because I am already 120 days delinquent. Thanks again.

Sub: #4 posted on Tue, 07/08/2008 - 03:36

yeng_kong yeng_kong

(Posts: 4 | Credits: 1.23)

I have another question...can a collection agency garnish your wages...call your work place...or harass you by telling you they are going to pursue legal actions and take everything you owe???

Sub: #5 posted on Tue, 07/08/2008 - 03:38

yeng_kong yeng_kong

(Posts: 4 | Credits: 1.23)

The following actions are illegal practices in attempting to collect a debt:

*A debt collector calls place of employment work after you tell the collector not to call your work.
*A debt collector makes an excessive number of phone calls. (More than 1 call per day.)
*A debt collector claims to be an attorney or sends letters that look like they are from a law office. (Unless that debt collector is actually an attorney.- make sure they are an a attorney).
*A debt collector continues to contact you even after they have been made aware that you are being represented by an attorney or settlement agency.
*A debt collector tells someone other than you, your spouse, or your attorney or settlement agency. That you owe them money.
*A debt collector misrepresents the amount of money owed, or the legal status of the debt
*A debt collector fails to honor your request for them to cease communication to you.
*A debt collector gives false information regarding your credit.
*A debt collector threatens to garnish your wages or take your personal property. (This can only be done with a court order.)
*A debt collector uses obscene language.
*A debt collector threatens you, or your family.
*A debt collector does not give you a 3-10 day notice before cashing a check post-dated issued by five (5) or more days.
*A debt collector threatens you with criminal prosecution or tries to imply your committing a crime that you could be arrested for and go to jail.

Sub: #6 posted on Tue, 07/08/2008 - 03:43

mobile0311 mobile0311
Moderators
(Posts: 1817 | Credits: 104.57)

Hello friend,

You can get an overview on the limitations imposed by the law on collection agencies in FDCPA-what Collection Agencies can????????t do to you.

Phoenix

Sub: #7 posted on Tue, 07/08/2008 - 13:29

phoenix phoenix
Moderators
(Posts: 1444 | Credits: 275.38)

Thank you Paul and Phoenix!!! Now I will wait for my phone call from the counseling agency and take it from there. I filled out the form on this site, so we'll see how it goes and I will keep everyone posted.

Sub: #8 posted on Tue, 07/08/2008 - 18:41

Unregistered


Is it harassment when a minor picks up the phone and the CA keeps telling her that she needs to give him an alternate phone # and tells her he needs to speak to an adult when she has already told him that she is babysitting and that no one is there at the time? He won't hang up and tells her he will not hang up until she gives him a # or finds someone to talk to him. This happened to my babysitter (she's 16) and now she's afraid to pick up the phone. Can I do anything about this? She said he called twice that morning with in a 1 hour time frame. Does the one call per day still count eventhough they weren't able to get a hold of you but left a call back #? Thanks and sorry for not knowing any of this.

Sub: #9 posted on Tue, 07/08/2008 - 23:23

Unregistered


Quote:

Is it harassment when a minor picks up the phone and the CA keeps telling her that she needs to give him an alternate phone # and tells her he needs to speak to an adult when she has already told him that she is babysitting and that no one is there at the time? He won't hang up and tells her he will not hang up until she gives him a # or finds someone to talk to him. This happened to my babysitter (she's 16) and now she's afraid to pick up the phone. Can I do anything about this? She said he called twice that morning with in a 1 hour time frame. Does the one call per day still count eventhough they weren't able to get a hold of you but left a call back #? Thanks and sorry for not knowing any of this.


The babysitter scenario was probably some form of harrasment but without a tape recording of it there is no proof and even with a tape recording of it unless you had some real violations going on it wouldn't do much good in my opinion. You would have to catch the collector in a real violation like discussing your account details with the babysitter. The collector acting like an ass and pushing to speak to you over the phone really isn't a violation. The best solution is for the babysitter to either hang up or never answer in the first place.

A collector can call back repeatedly if you do not answer. The one call only applies if the person owning the date answers the call. If a message is left they can call back. Again you would need phone records and recordings to prove this violation.

Your best solution is to send the collector a DV letter with a C&D attached to eliminate all the phone calls period and force them into mail contact only. Then if they call at all it is a violation no matter who answers.

Sub: #10 posted on Wed, 07/09/2008 - 01:10

DOLLARSandSINCE DOLLARSandSINCE
Moderators Cum Industry Expert
(Posts: 1078 | Credits: 137.97)

Attachment
More information
  • Files must be less than 1.25 GB.
  • Allowed file types: txt pdf jpg jpeg png.
Post as a guest
CAPTCHA
This question (Case Insensitive) is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Post as a member

Share post

Page loaded in 1.354 seconds.