'Carrot And Stick' Of Chase Bank

[ryan]

After months of non-payment Chase has offered a settlement - their suggestion, not mine. Its too high, but I was surprised. They are the only creditor to have offered anything like this so far.

On the other hand, they are the only one sending very threatening letters (got one the other day)...which suggest in a another few weeks they will sue me. No letters like that from other creditors either.

Quote: "....to avoid a lawsuit contact one of our representatives..You have X number of days to schedule your payment. Otherwise, and without further notice, the bank intends to instruct its attorney to commence legal action against you for the entire amount owed plus appropriate interest and court costs...."

So, I'm wondering if this is a tactic they use:
Offer a deal with one hand and threaten lawsuit with the other.
(This is after 4 missed payments)

[catleg]

You might be close to getting sued. I think Chase has a real bee in their bonnet about strategic defaulters, and wants to make an example out of anybody who's thinking "these banks got a bailout, so why should I pay again?". I got those letters about a month pre-lawsuit, though we didn't get served for about another 2 months after that.

Citi, on the other hand, hasn't yet even filed proofs of claim in my case after 3 months, I suspect there is major back office malfunction there (i.e. inability to hire enough folks to handle the work) and/or no JDB wants their paper anymore.

[albacore44]

I was worried about Chase because i know they have in house atty's who work out of LA. But of all my CC's they were the quietest, and i had 4 cards between me and my wife. been a year........no Lawsuit

[ryan]

You might be close to getting sued. I think Chase has a real bee in their bonnet about strategic defaulters, and wants to make an example out of anybody who's thinking "these banks got a bailout, so why should I pay again?". I got those letters about a month pre-lawsuit, though we didn't get served for about another 2 months after that.

I'm ignorant of what a 'strategic defaulter' is??...and I can't imagine in a million years why I would be identified by them in that way?

...what could possibly be the basis for that? I never, ever discussed the 'national banking situation' with them.

I should have mentioned I also talked to a chase rep the other day, who when I pressed him about the seriousness and urgency of the legal action threat in the letter, he seemed to be searching for words and then said.."the letter was to motivate me.." yeh, right.

[catleg]

This is just idle speculation on my part, fed by the idea that Chase is one of the "healthier" TBTF (too big to fail) banks and also seems fairly litigious.

Strategic defaulter means treat your debts as a business decision, like a bank does. Boy they really hate that.

Sorry to see you're in IL, one of the states where Chase maintains "in-house counsel". Meaning they probably hire a couple of bottom in their class law school graduates to use their signatures on collections letters.

[carol7lynn]

Chase'n You Down!

I just got a notice of charge-off yesterday (after 6 months of non-pay) and no mention of being sued. Just said they would either to continue to hound me or sell my debt to a debt collector. I also got a call from them yesterday and she mention "a lawyer might get involved" but nothing like the above poster got.

C7L

[ryan]

Sorry to see you're in IL, one of the states where Chase maintains "in-house counsel". Meaning they probably hire a couple of bottom in their class law school graduates to use their signatures on collections letters.

yeh, that is exactly what was on the bottom of the letter. ...a list of states and lawyers names in those respective states listed as in house counsel.

well, I guess I'll just take what comes.

[nickifan]

Sorry to see you're in IL, one of the states where Chase maintains "in-house counsel". Meaning they probably hire a couple of bottom in their class law school graduates to use their signatures on collections letters.

Catleg, do you have any idea what they do in Texas? I do have a Chase Visa. (And Chase banking, but there is $0.00 in checking and $1.00 in savings...)

And how DO you find all this info????

[GoingDown]

I was worried about Chase because i know they have in house atty's who work out of LA. But of all my CC's they were the quietest, and i had 4 cards between me and my wife. been a year........no Lawsuit

I find it interesting how the same bank treats people so differently.

I had a Chase Visa that I stopped paying on over 6 years ago, and they never threatened to sue or anything like that with me, either.

I sent them a cease and desist and they stopped calling me. Then sold it to a junk debt buyer, and I did the same thing to them, and they bumped it around to 4 different collection agencies, and now they have gone silent. I haven't heard from them or any of their collection agencies in over a year.

Yet, with other people, they sue at the drop of a hat.

I have to wonder if my cease and desist/judgment proof letter made them think I wasn't worth suing?

[BKDefender]

nickifan,
Texas has a constitutional prohibition on wage garnishments and VERY generous judgment exemptions. If they win a lawsuit against you, they'd have to go after your bank accounts and other non-exempt property (2nd car per person at home, recreational motor cycle, boat, etc.) The one thing Texas is strong against is failure to pay child support and then all bets are off. I was born and raised in Texas and if I remember right, Texas used to have a sort of wildcard $30k exemption per individual which includes the value of 2nd car, RV, boat, two guns, etc. Check your statutes to see.

--William

[flyinbroke]

It is still 30K per individual, 60K per couple.