[tiggerella]

My husband and I opened a store credit card account back in the mid 80's and purchased many things through the store. Over the years, every time we were unable to come up with the full minimum payment all at once, we contacted the 800 number on our bills and made an arrangement to do weekly payments at the store until we could afford the full minimum balance again to avoid falling further behind.

In 2002, a salesman at the store convinced us that the new Gold Mastercard the store had just come out with was a better deal than the original card that could only be used at the store, so we switched to the Gold Mastercard. Unfortunately, this meant we no longer were dealing with the store, but a national conglomerate that wouldn't allow us the old weekly payment plan. Instead, when told that we were having a hard time coming up with the full $75.00 payment, they doubled the amount of the monthly minimum and started calling us several times a day to harrass us about paying the new minimum.
Over the past year alone, the conglomerate has doubled the amount of our debt through late fees, over the credit amount fees, etc. and has now turned us over to a collection agency.

We've been doing all we can to get a payment arrangement with this company that we can work with, but every time we make a verbal arrangement, they renege - and they refuse to give us an arrangement in writing. When offered our income tax refunds for the past two years, they refused because we couldn't guarantee when the IRS would send us our check. We don't believe that their "policies" would stand up in a court of law, but we have yet to find a lawyer who will take our case because we only owe about $5000 - which isn't enough to pay his fee of 10% even if we win.

Any suggestions from the lawyers out there?

[wynelle]

I'm not a lawyer, but one of the first things I would do would be to cut up that card and cancel it.

The second thing I would do is to take your income tax return and put it all against the card, which should decrease your balance and your payments.

I remember reading an article that said if a consumer only paid the minimum payment on a credit card, it would take 30 years to pay off $5000. For that reason, the banks have raised the minimum payment, to give the consumer the chance to get out of debt.

Unfortunately, all those policies for late payments, over balance fees, etc--they are enforceable. So focus the Tax Return and every other penny you can on getting this paid off.

[fredg]

Hi,
I am sorry to read about this; especially with the Collection Agency. There is probably little chance the Collection Agency will agree to smaller payments; they were hired to collect the amount owed.
There have been National Network News associations' reporting on Credit Card debt recently. It all comes down to the fact that Credit Card companies are losing too much money on "negotiations", so they say. Many college students, when they graduate, owe hugh, hugh amounts to Credit card companies, and now the companies are "cracking down", not willing to just "write off" the debts, as they did last year.
My suggestion is to get a Lawyer. I am not a lawyer, nor a professional in this area. But, talking with a lawyer will let you know what to do, and he/she can give you the chances you have with one approach or another. I do wish you the best of luck.
PS; If you haven't been able to find a lawyer yet, keep looking. If the cost for the lawyer is too great, you might have to borrow the money from a bank, etc, and pay off the $5,000.

[ScottGem]

My suggestion is to contact a debt counseling service. There are several non profit services, that will negotiate with a creditor on your behalf. I think your best bet is to try and get credit from another source that can be used to pay off this card.

The thing that bothers me here is why you continued to use the card once you realized it was a problem. I'm not saying you had to cut it up, but you should not have added any more purchases.

I will add that I think the attitude of the card issuer is unusual. I worked in the Collections field for a few years and have dealt with collection depts since then. In the majority of cases, debtors who are honest with the creditors and make a sincere attempt to make payments are usually given consideration and leeway.

One last point. While their procedures may be borderline, I doubt that they are doing anything illegal. You do owe the debt and they are entitled to collect it. So your best bet is to get someone to negotiate with them, rather than try to sue them.

[tiggerella]

Thanks to all who've answered this question - but just let me make the following comments in return...

1) My hubby and I didn't keep using the card after Citibank took it over from Sears National Bank - which was when all the "fun" started about the rising monthly fees and the difficulty in paying. We were about $700 below the credit limit when hubby broke his foot on a friend's jet ski and was out of work for 12 weeks. It took them just those few weeks to "fee" us up to the maximum balance between late fees and increased finance charges - and they never even took into consideration the fact that hubby makes 75% of our income, so I couldn't hardly pay attention while he was out of work, much less keep up with all the bills.

2) The cards have been cut up for over three years now while we've been trying to make payment arrangements. Unfortunately, the bank keeps on adding to the amount we owe even without us being able to add any charges to the account - and they keep increasing the amount we owe each month no matter how often we've tried to make them understand that, if we couldn't make a $75.00 payment last month, we can't make a $150.00 payment this month.

3) Part of the problem in paying these people off comes from unexpected difficulties. In the past 5 years, we've replaced the front porch (for rotted supports), the septic system (the leech field was bad), the water pump (which pulls the water up from the well - and which burned out), and two walls (rotted supports) on our house. We've also had to trade up to a larger vehicle (6 foot tall sons don't fit in the back seat Neons), had to bury my sis-in-law (the subject of several other of my posts), and had to survive several broken bones on my husband's part - the latest of which was a broken arm about 10 weeks ago, when he fell off a step-ladder at work (each of which has put him out of work - and us back behind the 8 ball again).

In other words, thanks again for the suggestions, but we've already spoken to Consumer Credit Counseling Services (we make just enough to be $5.00 over the maximum income level they help) and everyone else that we've been told could give us aide, but to no avail. Since we've even had the telephone service to our house shut off (and I now access the internet from the local library) and they can't keep calling and harassing me for more money, I'm just going to start paying them what I can afford to each week - in cash - at the store where I originally got the account. As I manage to pay off other bills (like the car payment in September), I'll just increase what I pay them each month. Maybe by next spring, when I ask that question again ("Cashier's check or personal check?"), they'll be willing to just give me the answer without arguing over it...

_________________

Tig

[ScottGem]

First, I apologize for assuming you continued to use the card. Somehow I got that impression from your original note.

Second, you NEED an advocate. Whether it be a lawyer or a debt counseling service or whatever. Consumer Credit is not the only service you can contact.

[Fr_Chuck]

As Scott recommened a debt counseling service may work out a deal with them. But in the end, they don't have to deal if they don't want to. Sadly credit laws often allow them to do exactly what they are doing.

I am not sure there is any case to take "them" to court over. Your best hope may be for them to take you to court. But then they could win a judgement which would allow them to attach any and all of your bank accounts and put a garnishment on your paycheck.

If they are doing everything allowed by law ( and with the new rules they are allowed to raise the interest rate to the max your state allows for late payment and set up late fees and the such.



I would say that actually going to court could make things worst for you, if the credit card company is following the law that they can.
There is no rule that says they have to work with you, they may merely try to force you to follow the rules of the credit card.

They do work I understand with some of the credit counseling companies, that may be your best bet at this point.