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Hello,
Briefly: out of work due to illness with no immediate resolution in
sight. All debts remain current. I am waiting on certain events to see
whether or not BK
becomes my only option.
However, one debt has managed to get loose: earlier in the year, I had
charged $1,000 to my AmEx personal card for medical equipment. They
were able to extend the payments via their Sign and Travel plan.
Foolishly, I then charged an additional $2,000 in equipment, which was
a quasi-emergency, and believed they would also extend the payments.
(Perhaps more wishful thinking on my part than anything.)
They did not. Unable to come up with $2,000 quickly, the account
deferred for over 90 days until it was finally passed over to Allied
Interstate Collection. Obviously, the $1,000 that was on
extended-payment has been added to the lump sum owed.
I am responsible for this debt, although certain circumstances went
beyond my control. (I needed the equipment purchased and this was the
only way.) Allied, however, seems to be giving me mixed messages. They
said they did not actually purchase the debt, and are only acting on
behalf of AmEx. Therefore, no settlement is possible.
However, I called AmEx's legal department in New York and recorded a
representative telling me that AmEx would not prevent Allied from
agreeing to a settlement offer.
If I discover that I am able to salvage the rest of my credit and
debt, I will not declare bankruptcy and will settle this debt. It
would be easier to do so if I were able to offer them 50% of what is
owed.
What are the steps I need to take to offer them a settlement, and make
this incident as non-invasive to my credit as possible? Would a full
payment erase any black marks?
Is there anything I can offer to avoid getting into a legal melee with
this? Allied will not consider a payment plan unless I make a $1500
deposit. Can AmEx or they sue me? I've already had a few conversations
with one of their reps and it's just absolutely pointless. They have
advised me to "borrow from family" or "transfer the balance." Isn't
this frowned upon - just moving debt to another party so it's out of
their hands?
Even funnier - AmEx wrote me today and said they would give me an
"Optima" card if I paid my overdue balance in full. Yet if I had the
Optima card, I could transfer the balance and make the minimum
payments! The irony.
At the time, if I am able to do anything immediately, I could only
afford a 50% offer. If someone has another idea, I would be happy to
hear it.
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Briefly: out of work due to illness with no immediate resolution in
sight. All debts remain current. I am waiting on certain events to see
whether or not BK
becomes my only option.
However, one debt has managed to get loose: earlier in the year, I had
charged $1,000 to my AmEx personal card for medical equipment. They
were able to extend the payments via their Sign and Travel plan.
Foolishly, I then charged an additional $2,000 in equipment, which was
a quasi-emergency, and believed they would also extend the payments.
(Perhaps more wishful thinking on my part than anything.)
They did not. Unable to come up with $2,000 quickly, the account
deferred for over 90 days until it was finally passed over to Allied
Interstate Collection. Obviously, the $1,000 that was on
extended-payment has been added to the lump sum owed.
I am responsible for this debt, although certain circumstances went
beyond my control. (I needed the equipment purchased and this was the
only way.) Allied, however, seems to be giving me mixed messages. They
said they did not actually purchase the debt, and are only acting on
behalf of AmEx. Therefore, no settlement is possible.
However, I called AmEx's legal department in New York and recorded a
representative telling me that AmEx would not prevent Allied from
agreeing to a settlement offer.
If I discover that I am able to salvage the rest of my credit and
debt, I will not declare bankruptcy and will settle this debt. It
would be easier to do so if I were able to offer them 50% of what is
owed.
What are the steps I need to take to offer them a settlement, and make
this incident as non-invasive to my credit as possible? Would a full
payment erase any black marks?
Next time the collection agengy calls, make them an offer. If they say the
can't settle because of some phony excuse, you just say, : "That's my offer,
I can't control whether you accept it. Bye."
Is there anything I can offer to avoid getting into a legal melee with
this? Allied will not consider a payment plan unless I make a $1500
deposit.
You can make any offer you want. They can't control what you offer.
Naturally, they can reject it. But I wouldn't make a $1,500 deposit just to
get them to consider a settlement offer. A 50% cash offer is a common first
step. Sometimes they take it, sometimes they negotiate.
Can AmEx or they sue me?
Sure.
McGyver
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