Credit Card Help needed.

Thaiblue! CONGRATS!!!!!!!!!!!!!!!!

Congrats Thai!

Well, I think I am going to take my pennies and try to settle with one of my smaller cards which will make the 300 feasble on my meager income. Then, while I have the lady on the phone from Cap One, I will agree to 300 only on condition that 1) the rate is good for at least 1 year; 2) No more late fees are attached to my account; and 3) I get a written record of our agreement. If she cant meet those three conditions, then she will continue to get 100/month as a good faith payment for the next year, and we will try this again in one year unless I am harrassed about it, then she can get ZIP, ZERO, NADA and I'll use the cash she would have gotten to snowball the other debt.

I hate these people, and I want them to go to the 9th ring, of the lowest putrid inferno.

A quick note before I start. I've said these things before and was flamed for being a bad person. I'm not a bad person and don't advocate ducking your debts. I only give you the facts that the credit card companies are already armed with. I'm just trying to level the playing field with information.

I want you to understand that you don't have to pay unsecured credit card debt, which is what you're talking about. You don't need to declare bankruptcy either. If you want to wipe-out your credit card debt then all you have to do is to not pay it for a few years until the statute of limitations in your state expire. In your state (Louisiana) it's 3 years from the date of the last payment. Just hold them off for three years and it's over.

The first thing you need to do is to tell them that you don't want to talk to them. I recommend that you still communicate with them by letter, so you always know what's going on and you stay in control. To do that you need to write them a letter. Specifically, you need to make a cease communication demand; demanding that they not contact you by phone but may contact you in writing. You can reference 15 U.SC. 1692c as the federal statute which makes it illegal for them to contact you after the demand. Here are some sample letters:

http://www.google.com/#hl=en&safe=of...a3d25e1efe4b25

In the cease communication letter you should also ask for verification of the debt (search Google for debt verification sample letters). This sounds redundant, since you probably really do owe the money, but this will get you off the hook 50% of the time. They will probably send you a bogus affidavit saying that you owe the money, with some collection officer having signed and notarized it. That doesn't meet the law, since they need to provide a contract that you signed.

Never answer a letter right away. You have 30 days, so use it. Remember, you're trying to run the clock out. If they give you anything short of a signed contract for verification of debt, answer in 3 or 4 weeks explaining that it doesn't satisfy the Fair Debt Collection Practices Act (FDCPA).

If they provide legitimate verification, then start excuses. Say that your wife signed the contract against your express wishes, so she wasn't acting on behalf of the marital community. Make up any lame excuse you want, but keep the excuses coming. I even know someone who delayed a collector for a few months by writing "deceased" on a letter and putting it back in the mail. The idea is to confound and frustrate the credit card company into giving up the effort.

Eventually the credit card company will sell your account to a junk debt buyer, so the trail to the debt verification will be broken. They won't be able to provide you with a signed contract because they don't have it. The inability to verify the debt, along with your cease communication letter, will doom the account to expire along with the statute of limitations.

It is very important that you don't make even the smallest token payment, since that will start the statute of limitations aver again.

I haven't dealt with Am. Ex., but I've dealt with Citibank, CapOne, and Chase. Chase is difficult. They use a collection company named Mann Bracken. Their MO is to send the account to arbitration to get a legal judgment against you using their own "bought and paid for" arbitrator (guess who always wins). The purpose is to get a judgment that has a statute of limitations of 10 years, and also gives them some teeth to lien property. While you probably already agreed to arbitration in the contract, you must be very insistive that you will not accept arbitration. You should threaten to show the letter trail to a "real" judge, or your state attorney general.

There are some books you can get on this subject. Look at Eden Press in this category.

http://www.edenpress.com/category.asp?index=2

The process seldom lasts the full term of the statute of limitations. If they don't get anything out of you in about 1 to 1 1/2 years they'll move on to softer targets.

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Why don't you insist that they do the $100? And, THEN, pay the $300 if you can.

The reason is, cars DO break, roofs DO leak, and they REALLY! need to follow through on their agreements!

My issues with Capital one went on for almost 2 years. They did not give up after a year and a half even though they were in the wrong.
I also wonder if the 3 years is valid. Seems like if they give it to a new agency they can start the clock all over again.
If you spent it you should pay it. Not paying it is the same as shoplifting, and it raises the prices just the same. They do have to make up the money somewhere. Not flaming you, just stating my opinion

whatrset before you talk to Capital One (who in my opinion are scum), talk to the credit counselors. If you can spend $300 a month, they can probably make you a deal for that amount per month for all the debt. They will get you a lower owed amount, lower interest rate and no more calls, letters and etc and you get all four off your back at once.

Thanks for the congrats, feels good to win for a change

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Whether you are in the right is not relevant to a collection agent. They are trained to collect, and they hear excuses all day. You aren't going to win by using reason. Besides, the collection agent almost certainly isn't authorized to discharge the debt even if he believed you.

It varies by state. Look in your state for "open accounts".

http://www.fair-debt-collection.com/SOL-by-State.html

No, the statute of limitations is from the last payment. However, if they hand it to a new agency you have to send a new cease communication letter.

Okay, fair enough. But many people don't have a choice in this economy. They can't pay no matter what. Those people shouldn't have to be harassed on the phone just because they don't know the rules. All I'm doing is arming people with the same information that the collection agents have.

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THai, I feel your pain and agree that not paying makes me less than the responsible person that I would like to think I am. I understand the ramifications on the finanial systen as a whole, and while I hated TARP, I didn't get as bale out as I am sure you didnt either.

Overall, Cap One is the only one that is trying to be a bully. The others have been very helpful and Chase even offered to settle for 50% at anytime that I can raise the funds. (Anyone have 9k in their pocket?)

I know it has taken a while to get in the debt, and I know most of it was based on stuff that I spent (Food, shelter, Clothes, Hurricane funds (RITA in '05) Travel (Son in a NICU 200 miles from home also in '05) . I swaer my financial life reads like a stinking country son, and frankly it irritates me to have this stupid tax that I need to clear.

I will plan to call for credit counseling early this next week to get things started.

Terri,
Than you for reminding me to keep enough money around to cover those things. I definitely need to review the budget and make sure every dollar is put to good use. Bt that is a REAL chore on it's own as I have a hard time knowing exactly where money needs to go ahead of time. I need to get my truck fixed... You know how hard it is to homestead in a car? lol << On that note, I informed my wife that this car I currently have will likely be my last. I NEED a truck. A car will get you from point A to Point B, but a TRUCK will get you and all your crap there too. >>Just my insanity kicking in I think. lol

Most are rip-offs. If they offer advice then fine, but if they want a fee then don't do it.

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Nevada, mind if I ask how you know all of this? I am not saying that you are wrong, I know that there are many paths that can play out in this cat and mouse game of finace, but what credentials is this arguement based on?

I have no intention of contracting with any agency that will cost me. I can kill my credit score on my own thank you.

No credentials. I don't do this professionally. I've read a few books, dealt with a few of my own issues, and helped a lot of friends. This particular book is a real eye opener.

http://www.edenpress.com/showbook.asp?index=669@2@B

The author is a little heavy handed, but he really understands how to confound bill collectors. Read the whole thing, then only do what you feel comfortable doing.

The important things are to know the law, know your rights, and take care of business on time.

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I will look into it Nevada, Trust me if it was just me, I would likely play that particular chess match. However, My wife isn't as ballsy as I am at times when if come to dealing with these people.

It won't hurt to send a cease communication demand letter and request verification of the debt.

http://www.creditcards.com/credit-ca...munication.txt

http://www.creditcards.com/credit-ca...bt_request.txt

If CapOne has harassed you in any way, you need to send one of these.

http://www.creditcards.com/credit-ca...cknowledge.txt

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I stumbled into this thread because I spend most of my time in the hhomesteading and real estate forums. I have not been reading and posting on ht very long but there are several persons on here who particularly impress me as to their knowledge, ability and caring. Nevada is one of them. If I were you, I wouldn't just blow off what he says because his advice is correct and it's valuable.
However, the question was as to experience with four named credit card companies, so I will simply relate some of mine.
First, in the '80's, I borrowed some money from General Financial (I think it was) to attend a Tony Robbins seminar in Maryland. It was so terrific, I signed up for a second seminar, put on by the same franchise (never did see Tony) which was in Virginia. These were sort of Washington, DC affairs but just over the state lines. I signed what I was told was a second contract incorporating the first. Ha ha. That was a lie! The first contract in Maryland was valid. The second one socked me for the cost of both seminars, so it was a fraudulent doubling. I paid off the second one and got a letter of release. I was assured on the phone this released me from the first one. The first one was then sold to Capital One which dunned me for years. Dragged down my credit, made me miserable, etc. I did not pay one penny on that bogus debt, so Capital One sold it to somebody else. Here it is, almost 30 years later. Every once in awile I will get a scare letter from some other sucker who bought that fictitious debt. Meanwhile, Capital One fills my mail box with generous offers and enticements. I am sure that if I ever signed up for anything with Capital One, blammo, they would sock me with whatever amount they could cook up.
There are usury laws. If I were you, I would look them upas a citizen you supposedly have a certain amount to live on. Since you live in Louisiana, you are under French law, right? Different from the rest of the country except where Federal law overides.
With all the people in Louisiana who lost everything, you surely are not alone with your problems. I suggest you check out all the references Nevada was good enough to give you. From my point of view, paying back what you borrowed is one thing, but paying back appalling interest, penalties and deadbeat charges is quite another. Had you considered bankruptcy?
I don't know how to move a thread, but you did have the suggestion this should be on homesteading. Could you just rephrase your question and post it there? Whatever you do, I'll add you to my prayers! Good luck to you. Don't let yourself get yanked around too much!

That's the nicest thing anyone has said about me in months. I didn't know anyone was even paying attention.

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Navatifarm,
I am not just blowing Nevada off, I have actually started looking into the sites that he sent. I am truely open to any path to being done with this debt, and I am greatful for all people who care enough about their neighbor to drop a line in!

I think I will also take up your advice and repost it to see if any new paths are shown to me. I am Not sure that I can fully take on Nevada's Stick it to 'em thru attrition due to certain in home circumstances, like my wife still being in school on borrowed money. As much as I hate to admit it, she still needs to borrow enuf to complete her last 6 months, there is NO WAY that I can pay that right now, and 3/4 of a degree is NO degree.

Oh, and to answer thebbankruptcy question, We have considered it, but it is definitely the least wise choice because if we were to go that route, she might have a hard time getting a job working with realtors under her new career path. In LA you cant be a realor if you have EVER declared a bankrupty. She has been thru the class and worked as one for a year. He liscense has lapsed but it is reattainable if she needed it to work in her field, which isn't unheard of as she is completing a degree in Interior Design.

BTW, what exact forum would this best be in?

The purpose of bankruptcy is to protect assets. That's not a consideration for unsecured debt, since they can't normally attach assets in the collection of unsecured debt. They would need to get a judgment to do that, but it will never come to that.

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