Home Depot/ Citi charge off what's next?

[clo]

We got a written settlement offer from Citi on a home depot account. The offer was 30% of the 10,000 plus balance. It gave us until yesterday to take the offer. We called the other day and they had shut down early for the holidays. We called yesterday which was the deadline and because of a time zone difference they were closed.

We called today to tell them about it and they wanted me to make a 41.00 dollar payment to keep the account active that will not apply to the settlement. They said they did not have a manager in that could approve the settlment offer that had expired the day before because their system showed the amount was back to 40% which I refuse to do.

They said even if I make the 41.00 payment they can not gurantee that the 30% offer would be approved. I explained that they could shove all of that. That it was no tour fault they played around for the holidays with shutting down early and that I was not paying the 41.00 or anything over the original 30% offer.

They said that the account was scheduled to be charged off tomorrow which is about 180 days give or take I guess. They said they needed the 41.00 payment to keep the account active to negotiate. He said if not it is sent to outside collections. Just hard to beleive there is no manager on duty on a weekday during regular business hours.

Once they charge off I assume they send it to collections. Does anyone know if they sell the account to a junk debt collector or do they just allow a collection agency to aggravate you while they still own the account?

[treehugger1]

For what it's worth, my experience with Citi is they send the account to outside collections agencies. If you request debt verification from the CA's this buys another 1-3 months. Eventually, they sent my accounts to legal firms. One of the firms sued me and received a default judgment that I am currently working to have set aside. From charge-off to suit was about 6-8 months. Your mileage may vary.

[AngelinaCatHub]

Hey, "Clo". Make NO payments. Do not even talk to them. If you are intent on C7, or C13, you will screw both items up the minute you make a "preferential" payment. Stay tuned, read all the 'stickies' and keep asking questions. 'Hub

[OutofTime]

I'm dealing with Citi right now and was all set to just get ready and save for filing fees and they threw a curveball and reported my spouse so her credit report is now being affected. Even though she is considered an authorized user, Citi claims that it is a joint acct. I am not sure what "preferential payment" is but I made a small payment so it won't go into collections (136 days late) so I can have some time and do research to prove that my acct was not set up as a joint and which will force Citi to correct the reporting of my spouse on her cr. Good luck with your situation as well because I hear bad things about Citifinancial...

[Flamingo]

I'm dealing with Citi right now and was all set to just get ready and save for filing fees and they threw a curveball and reported my spouse so her credit report is now being affected. Even though she is considered an authorized user, Citi claims that it is a joint acct. I am not sure what "preferential payment" is but I made a small payment so it won't go into collections (136 days late) so I can have some time and do research to prove that my acct was not set up as a joint and which will force Citi to correct the reporting of my spouse on her cr. Good luck with your situation as well because I hear bad things about Citifinancial...

Remember that if your wife is actually an authorized user on your account, it's your credit that she is using so if your credit is bad, it will show up negatively for her. Most people that are authorized users utilize other's credit accounts as such to benefit from good usage by the cardholder.

[pcn]

Hey, "Clo". Make NO payments. Do not even talk to them. If you are intent on C7, or C13, you will screw both items up the minute you make a "preferential" payment. Stay tuned, read all the 'stickies' and keep asking questions. 'Hub

Isn't a preferential payment a payment made within 90 days of filing, and occurs if you have stopped making payments to EVERYONE, except this person? And if a preferential payment is actually made, and the court decides to pursue, what happens is that the trustee recovers it from the person you paid - they don't actually come after you for it, and it doesn't stop your bk from happening. Just clarifying that a preferential payment will not guarantee the failure of a bk.

[clo]

It is my wife's card. I'm not an authorized user and we have a pre nup. She is not planning on filing BK as we would [refer to settle. We called today and they told her they could no longer speak with her about the account that it was sent to the recovery department. They gave us a number to call.

We called the number and they were closed. The recorded message said they were the citi recovery department. Is this a good thing a bad thing or they easy to work out a settlement with?

[catleg]

My experience with Citi is that they pester you through outside CAs while retaining ownership of the debt. Several of my accounts from other creditors have been sold, especially since we filed Chapter 13, but not any of the big three yet -- Chase, Citi , and BofA seem to be hanging on, though it might just take some months to get through the system.

We got sued for several older Citi accounts but not any of the partners (such as HD, Shell, Exxon) yet, which were less late. NJ is an easy/cheap to sue state.

[clo]

update:

Called the recovery unit and they confirmed just getting the account. They asked that we call back in a week so everything needed could be switched over to them and updated in the computer. They lady said the other reps do not have the authority to settle for less than 30% of the debt or go over 3 month payments but they do have this authority and would like to talk more about a settlement. I start every convo by letting them know that she is unemployed, does not own anything, has several accounts needed to settle with other creditors and will not be seeking employment due to health reasons. I also give them the bad news of the pre nup.

[DavidFlorida]

pay your bills

I know times are tough for those who did not plan ahead, and borrowed more than they were worth. I am currently paying 3 mortgages, my own, my son's, and a friends', but I am still paying on time. I have also had the son and friend sign notes guaranteeing me either repayment, or foreclosure on their homes. When I hear someone gripe about being 6 months late, and trying to find some way to avoid collection or foreclosure, it makes me sick.
Stop being a deadbeat, someone has to pay for your lack or responsibility, maybe you should just grow up and be an adult, for a change. My charge card company tried to increase my interest rate because of all of you deadbeats, so I cancelled them. It's not my fault so many of you people are trying to get something for nothing. I have been physically disabled 3 times in the last 40 years, so I got more education, and got back to work. I live in an area with a 14 percent unemployment, and there is still plenty of work around, just not a whole lot of steady jobs. Those who are responsible do whatever it takes to take care of themselves, rather than try to sponge off the rest of us. Sign me p.o'd in Florida

[pcn]

I know times are tough for those who did not plan ahead, and borrowed more than they were worth.

Those who are responsible do whatever it takes to take care of themselves, rather than try to sponge off the rest of us. Sign me p.o'd in Florida

Oh you are so going to get flamed. Sitting back to enjoy the show.

I for one am so glad you've joined. We need more members here who have never made mistakes or fallen on bad luck to help guide those less fortunate and less sophisticated with their superior knowledge.

[Meatstick]

That is a funny post with some points of truth to it. Let the poster have his say and just ignore or he may be back.

[Jackdog]

I know times are tough for those who did not plan ahead, and borrowed more than they were worth. I am currently paying 3 mortgages, my own, my son's, and a friends', but I am still paying on time. I have also had the son and friend sign notes guaranteeing me either repayment, or foreclosure on their homes. When I hear someone gripe about being 6 months late, and trying to find some way to avoid collection or foreclosure, it makes me sick.
Stop being a deadbeat, someone has to pay for your lack or responsibility, maybe you should just grow up and be an adult, for a change. My charge card company tried to increase my interest rate because of all of you deadbeats, so I cancelled them. It's not my fault so many of you people are trying to get something for nothing. I have been physically disabled 3 times in the last 40 years, so I got more education, and got back to work. I live in an area with a 14 percent unemployment, and there is still plenty of work around, just not a whole lot of steady jobs. Those who are responsible do whatever it takes to take care of themselves, rather than try to sponge off the rest of us. Sign me p.o'd in Florida

So your son is a deadbeat as well? Some of us don't have Mommy or Daddy around to bail us out. Even if I did the last thing I would ask would be for my Mom or Dad to pay my mortgage for me. Yes, I got myself into this situation but I'm not about to run to Daddy and ask him to flip the bill for my mistake. I just hope you talk as harshly to your son and friend and I actually do hope they pay you back.

[flyinbroke]

So your son is a deadbeat as well? Some of us don't have Mommy or Daddy around to bail us out. Even if I did the last thing I would ask would be for my Mom or Dad to pay my mortgage for me. Yes, I got myself into this situation but I'm not about to run to Daddy and ask him to flip the bill for my mistake. I just hope you talk as harshly to your son and friend and I actually do hope they pay you back.

Nah, most of these types are "do as I say, not do as I do" types. The golden son probably has carte blanche to walk all over Daddy's finances. Plus he is paying a deadbeat friend's mortgage too. Maybe she is a real good piece so there is some tradeoff for him, I don't know. Since water seeks its own level, I am guessing this guy is a deadbeat wannabe. He sure hangs out with enough of them.

As for paying for all the deadbeats with interest hikes, Jon Stewart calls this the "**** You" clause. As in "we can do what we want once we have you tied into us financially, so **** you, we are raising your rates." They were hiking rates long before the crisis hit...and it is a sure sign they are trying to get rid of you as a consumer. Has nothing to do with nonpayment of bills...has more to do with the CEOs not being able to buy the kids Ferraris for their super sweet 16s and you are not profitable enough.

[pcn]

So your son is a deadbeat as well?

Good point. But, judging from the high post count and lack of responses I doubt we will see this troll again. Hit once, get people stirred up, and disappear.