Problems with Ch--e Credit Serv.
Late last year I entered into a settlement agreement with Ch--e, whereby I would remit payment of 51% of my balance and they in turn would not seek reimbursement of the remaining balance, but instead report it to the IRS as earned income. All payments were to be direct withdrawal from my bank account with my full authorization. I was to repay $4500.00 within 30 days, with the first payment totaling $2800.00 due November 3rd, 2006. The second payment of $1700.00 was due two weeks later. The first payment was made as scheduled. However, when the second payment was coming due I did not have the funds available, so I contacted Ch--e to notify them that instead I would split this payment into two separate payments of $850.00, one to be made that same day and the last payment two weeks following. Both payments were authorized by myself at the time of this phone call with Ch--e. The first payment of $850.00 was withdrawn from my account as authorized. However the second payment was not withdrawn as agreed, whereby this would have concluded the terms and conditions of the agreement. Unfortunately, I was not aware that this payment had not been withdrawn from my account. This was my fault, however the payments had been arranged and authorized by myself.
During the initial arrangement of the settlement the person informed me not to pay attention to the next coming statements as they would not reflect the agreement made between Ch--e and myself, but that they would send a letter to me notifying me that they had informed the IRS sometime in late January or early February of 2007. I was expecting this letter to include in my tax records, however when I received the February statement I noticed that the balance was still present and in fact had been increased substantially due to the current interest rate of 29.99%. I promptly contacted Ch--e to investigate what happened as I had thought that all had been resolved. Many discussions evolved thereafter and Ch--e informed me that they would review the case and if they had not withdrawn the payment as authorized and agreed, then they would honor the agreement as planned.
I contacted Ch--e on multiple occasions to inquire as to the status of this review, however no one could inform me what that status was. Most recently they informed me that it was my fault and that I had broken the agreement to pay the original amounts set up and therefore the original settlement was dissolved. All they were interested in now was when I intended to pay the balance accrued since then.
I informed them that as Ch--e had agreed to split the payment and withdraw the first payment of $850.00 and thereafter the second payment of the same amount, that this constituted a verbal change to the contract agreement previously made. In fact, since Ch--e did follow through and withdraw the first installment of $850.00, this constituted an acceptance of this verbal change.
Last week I was informed by letter that Ch--e is now proceeding to commence with legal action against me for the entire balance owed, approximately $6,000.00, plus appropriate interest and court costs.
I have always informed Ch--e that I am still willing to honor my portion of the agreement and remit payment of the last installment of $850.00, however they have not listened to my pleas or requests for an amiable solution.
What can I do?