Ignoring The Credit Card Companies Calling

[krispy12]

The past few months I haven't been able to pay my credit cards. I'm going to file in a few months. They keep calling me & I haven't answered any of their calls because I know I'm not able to pay & I don't want someone harrassing me about it. Is it ok to never pick up their calls & just file later? Would it be better if I tried to talk to them even though I won't be able to pay?

[krispy12]

I haven't picked up any of their calls as of yet so they don't know if I'm alive or not lol. But on a more serious note, what other actions can it slow down? Will they call less or more after I pick up?

Something else I was wondering about was, what do they do when I don't pick up & it's been 4 months behind on payments? Right now I'm late the past 2-3 months & with the late charges & high APR adjustments I don't know how I'm going to be paying this when it was hard before.

[treehugger1]

Depends on the company. Capitalone did nothing until I was close to chargeoff and then they offered "deals," that at the time I could not afford. Eventually they sent these out to collections (they did not sell the debt) and I DV'd and requested a cease-and-desist. The collections companies stopped calling. Capitlaone occasional calls, but I send them what I can.

The calls will continue. If you don't pay your debts then they have a right to continued collection attempts. You may not hear from them for several months, but eventually they will start calling.

If the account goes to collections, you can begin receiving calls very soon. If the caller is a debt collection company, simply tell them that they need to send you info in the mail. When you receive the info, then ask them for a DV. Send all communications certified return receipt registered mail.

None of the above will stop collections on an account you actually owe. You owe the debt, so expect them to attempt to collect (collections, lawsuits, etc.) In the meantime, exercise all rights afforded you by federal and/or state laws.

I continued to "discuss" the fact that I cannot "pay as agreed," and eventually I got 5-year workout agreements with many of my creditors. Can I continue to keep paying as agreed? I have no idea. But, a BK 13 is my fall-back plan.

The calls will keep coming. They may increase in intensity as you get close to the 180 day chargeoff date. Depending upon the size of the debts and whether or not the debts are local or national can have a bearing as to how soon a CA/creditor moves toward suit.

Always keep in mind that "not paying your debts" is not a criminal matter, but a civil matter. Unless you've committed fraud and/or hidden assets, you have not committed a crime; rather, you are guilty of a civil issue. Not paying your debts can lead to civil suits, small claims, etc.

In my own experience, occasionally answering the phone and speaking with folks led to time far beyond the charge-off date. Every situation is different. If you are eventually sued and wage/bank garnishment is eminent, then file for BK. Knowing you can seek relief in BK court is powerful.

In the meantime, prepare yourself for the "worst." Educate yourself as to "what can happen" if you don't pay your debts under your state laws.

It has been mentioned on this site that no shoe fits all. This is very true! Everyone considering BK is an individual case prior to filing.

You might wan tto go through a checklist:

1) Are there local creditors that move toward small claims an dbank/wage garnishment?

2) Do I have any hard assets that go beyond the exemptions of my state?

3) Do I have a steady income that can be garnished?

4) Do I have a savings acount with hundreds of dollars in it?

5) Can I afford to answer civil summons and complaints? Do I know how?

If you ignore summons and/or complaints, then you can expect a default judgment that will lead to garnishment of non-exempt bank accounts/wages. If the claim exceeds a certain amount, then expect to see a lien on real assets. In the long run, a bankruptcy filing can clean the slate of garnishments, liens, etc.

So, how long do you have? There is no one answer. Roll the dice and see what happens if you are intent on filing BK.

[pa308]

I had a couple creditors start to call me at work. For the life of me I dont know how they got the number, I dont recall listing it on any apps but who knows. Once I got the first call at work I began picking up all calls at home and telling them to talk to my attorney. Just my 2cents.

[krispy12]

I have about 50,000 in debt, all credit cards. I will pick up tomorrow & let them know I'm trying to pay it. Hopefully they stop calling so much.

[liz417]

Hi there,

I just pick it up because I don't want them to call my neighbors or family members! They seemed nice enough, although Chase repeately called several times a day! I noticed that the other cc companies called about once a week and I was only one month behind.

Good Luck!

P.S. I stopped paying in May (to save for an attorney) and I've just received a collections notice for my AMEX card! I've heard AMEX is very aggressive on collections.

[krispy12]

They are literally calling every 10 min. I have turned my phone to NO RING unless it's my bf or family or friends calling. They leave automated messages all day long.

Amex I believe called my mom! They have called my bf's workplace too but that died down, thank goodness.

[epiphany]

They are literally calling every 10 min. I have turned my phone to NO RING unless it's my bf or family or friends calling. They leave automated messages all day long.

Amex I believe called my mom! They have called my bf's workplace too but that died down, thank goodness.

I have found that talking to them (though I never pick up, I just call them back when I feel like it...I have to be in the right mood..but I do call them soon) has really cut down on the calls.

I tell them of my BK and give them my lawyer's info. Any other info they want, I tell them to ask my lawyer. Some creditors (like Cap One), I have not heard from in months, while others have just been passing the debt around as soon as they hear that information.

I do not recommend ignoring the creditors for a long period of time (others will disagree with me) if you are concerned about them calling your work or others, as I was.

My sister in law got a call and so did my brother. Both calls were from creditors that I had ignored. And somebody at work told me that a collection agency called, though he couldn't remember the name, that creditor clearly had said they were XYZ Collections.

ep

[Lajazz947]

Amex turned my account over to James west who calls every few days or so.

Chase is relentless so I ignore them. They refused to work with me anyway.

Wells Fargo is also relentless, would not negotiate and used a set off to take away $3500 from my Wells Fargo checking account which made my mortgage payment bounce.

Guess what? WF now is no longer my bank.

Capital one was relentless as well but I have not heard from them in a while.

I am in California. My guess is that AMEX and Chase will be the thorns in my side but I will gladly settle with them if they will listen.

[ssdsco]

[Lajazz947]

Wow, great post.

I have sent letters to all Creditors, gone to Counseling, sent in minimum payments and even less.

I don't answer calls anymore.

I also have about $220,000 in consumer debt and I may have to wait until April/May of 2009 to file due to an insider payment in March 2008 that I had NO CLUE would be an issue.

I was not even contemplating filing at the time anyway so I would not have known

This is great advice though, THANKS.

[BKORNOBK]

After the payments stop, how much time passes between simple calls and letters before the creditors get more serious, i.e searching for assets, serving papers, etc?

I understand there is no absolute answer and appreciate any thoughts.

I'm making a good faith attempt to avoid BK but I'm learning to ask questions in case I crumble.

Thank you for all the help.

[AngelinaCatHub]

http://www.ftc.gov/os/statutes/031224fcra.pdf

The above link may help. The Fair Credit Reporting Act. I believe in any case, whether in bk or not, if you inform the creditor not to call you and confirm this in writting, they are prohibited from calling you. If they do, explain to then that you are now recording that call and please state name, company, and complaint to your tape recorder. They won't be back. No I have not researched this big document but I heard it on the Clark Howard show. 'Hub

[AngelinaCatHub]

Apr 30, 2008 -- Collection calls being outsourced
As people are being financially squeezed, the rate of delinquencies on auto loans, credit cards and HELOCs is rising dramatically. Of course, it goes without saying that the collection agency biz is a huge one. It's also the latest thing to be outsourced, according to The New York Times. Collection agency calls are being sent offshore to countries such as India.

As kind of a corollary to this, you may notice that you'll start receiving collection calls out of the blue if you have old debts. Collectors are looking at the tax rebate checks as money to be tapped immediately on past due debts.

If you do get the call, what are your rights? You have the right to tell them in writing not to bug you. Use Clark's drop dead letter to help. If they don't comply, you can take legal action against them.

There is one exception to this rule. Banks are allowed to use their own in-house employees to act as collectors. They must, however, stop short of threatening you with physical harm.

Collectors are also allowed to call about a debt even if it's very old. In many states, these "zombie" debt calls present a double danger. If you pay them even as little as $1, they can turn around a file suit on the debt to get a judgment against you. Even if it's 25 years old! So watch out…

Finally, Clark always wants you to honor your debts. If you can't do it right now, wait until you get back on your feet financially and then do it.

http://clarkhoward.com/shownotes/category/12/103/358/

Above is an exerpt from Clarkhoward.com and may help you. 'Hub

[fltoo]

Ok Krisp, sounds like you definitely need to file due to your large debt and wait out the two years.

Answering the phone, as you can see, is a matter of opinion. Personally, I found that talking to them was better and gave me more time. Also, I read every single piece of mail concerning the debt.

Start using money orders and if you paid any bills online, go to the sites and delete the info. No guarantee they won't retain the info, so I just closed all accounts.

I was give plenty of warning of a pending judgment from Chase. They were the most aggressive. Again, personally, I would never show up for a hearing since there really is no way to stop it. I could not see adding stress to my situation.

I am judgment proof, so I am just waiting to file and that will alleviate the judgment.

Find out the exemptions in your state to see if what you have of value is protected. You are really lucky that you have no worries of wage attachment. That is a biggie.

Couple of weeks ago I was sent a notice from Chase of a checking account garnish. Well, the account has been closed for months, lol, silly them.

Use cash and money orders only, lay low, don't pay any amount to the credit cards and you will be fine.