The text of the letter is as follows:

This letter is your opportunity to make arrangements to pay the balance before the account is forwarded to an attorney licensed in your jurisdiction who will review your account to determine whether to initiate a lawsuit to collect the outstanding balance.

If you have any intention of resolving this account, please contact us within 30 days from the date of this letter.

You may also make payment by visiting us online... (blah, blah, blah)...


I don't know what to do. A little background: This was from an AmEx account. I was not able to pay anymore because of family reasons (SAHM, new baby, not enough money). I stopped paying this account back in December 2007 or January 2008. They wanted me to settle the $13,500 debt for $10,800. Obviously, I didn't have the cash laying around, so I couldn't settle. They sent the debt to one collector (GFS) and now it's on its' second collector (NCO).

So, NCO sends me this letter and now I don't know what to do. Everything on the net says these guys are ruthless, but I have yet to speak to them. I seriously don't even answer my phone anymore.

I had two other accounts which I was able to settle for 50% of the original debt, but I am officially tapped out. To make the final payment on one, I had to borrow money to buy groceries.

I don't know if this is a scare tactic. Should I call them? Should I let them send me to court? I don't have a clue which way to turn.

Background on the credit account: My husband was listed as an authorized user, but then I removed him when we were going through a rough patch. I did not add him back on or anything before I stopped paying it, and removing him was probably 4-6 months before.

Any advice?

Quote:

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Originally Posted by amys123

The text of the letter is as follows:

This letter is your opportunity to make arrangements to pay the balance before the account is forwarded to an attorney licensed in your jurisdiction who will review your account to determine whether or not to initiate a lawsuit to collect the outstanding balance.

If you have any intention of resolving this account, please contact us within 30 days from the date of this letter.

You may also make payment by visiting us online......(blah, blah, blah)....


I don't know what to do. A little background: This was from an AmEx account. I was not able to pay anymore because of family reasons (SAHM, new baby, not enough money). I stopped paying this account back in December 2007 or January 2008. They wanted me to settle the $13,500 debt for $10,800. Obviously, I didn't have the cash laying around, so I couldn't settle. They sent the debt to one collector (GFS) and now it's on its' second collector (NCO).

So, NCO sends me this letter and now I don't know what to do. Everything on the net says these guys are ruthless, but I have yet to speak to them. I seriously don't even answer my phone anymore.

I had two other accounts which I was able to settle for 50% of the original debt, but I am officially tapped out. To make the final payment on one, I had to borrow money to buy groceries.

I don't know if this is a scare tactic. Should I call them? Should I let them send me to court? I don't have a clue which way to turn.

Background on the credit account: My husband was listed as an authorized user, but then I removed him when we were going through a rough patch. I did not add him back on or anything before I stopped paying it, and removing him was probably 4-6 months before.

Any advice?

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If you are able to make payments, you can always call and see if they will accept payments. If they only want a lump sum and you don't have a lump sum, you can always call and tell them that. JUST DON'T AGREE TO ANYTHING WITHOUT HAVING A WRITTEN AGREEMENT IN FRONT OF YOU.

Are they bluffing or scaring? Probably not. It's their job to collect and you've admitted that you owe.

Worst scenario - they get a Judgment and begin legal efforts to collect - garnishment, freezing bank accounts - or doing nothing for a very long time.

You have quite a while before you're out of Statute so they have time to play around with this.