[COMBS55]

I am attempting to clear up 3 charges on my credit report. Had a very difficult year. Moved three times did not keep up with existing bills. I pulled credit report. Contacted 2 creditors, both in collections, both sending info and were more than happy that I wanted to make arrangements. Third one, CitiBank, flat refused any payment but in full, said they would take further action, said I could be arrested for fraud. I made several payments before not making payments, told him there was no fraud. He refused to talk with me... I don't know what to do. I want to pay what I owe. Please Help. Should I see an attorney, should I write a letter, or should I try and call again?

[youareceo]

First, this is NOT a collection agency. Citibank is the original creditor, meaning except for the abuses the Fair Debt Collections Practices Act does not apply.

Second, if they accused you of fraud, tell them prosecute because they don't have a case. They have to prove you NEVER intended to pay it back. It appears you have made payments, and even calling them to make arrangements would negate fraud.

What they are trying to do is bully you. It is against the law for any creditor to threaten prosecution when no such crime has ben created, or imply that you will go to jail in any way.

Let me explain the double-edged sword here:
They can't keep you from paying whatever you can. But they don't have to void overlimit & late fees, or reduce interest.
Now the painful end of the sword: If you pay them another dollar, it will reset your debt clock for ANOTHER charge off on your credit report if you fail to pay again; and, reset the statute of limitations before they can sue.

I have dealt with Citibank as a respondent to a lawsuit, and they are vicious, cannibalistic thugs. They WILL sue you if you do not pay. Do not be fooled by debt settlement or consolidation firms: They won't work. They'll sue unless they KNOW they did something illegal.

Lucky for you they crossed the line. Some people I know would sue them immediately for fraud, breach of contract and violations under that Collection law. But then you would have to come up with a large settlement chunk of upwards of 35% or more of the debt. That's a lot of money.

I had a friend who last week was offered unconditional dismissal by a local attorney, and then when he signed it and sent in they went to trial anyway and got a judgment as he didn't show up. Debt attorneys used to just steam roll over everyone. With the development of the Internet, BBS's like this, and the "Fair Credit Movement" they had to change their tactics to reflect a knowledged consumer in their rights.

Here's what they have done to you:
First, material fraud (telling a debtor something that is materially not true for financial gain - your cash, even when it is owed); second, a breach of the good faith of your contact (you want to pay and they want to arrest you); third, possibly extortion (threatening you for money with something they have no legal right to do, is illegal or is a civil wrong/tort such as sending you to jail); and, it violates the Fari Debt Collection Practices Act (telling the debtor they will be prosecuted or arrested if they do not pay).

If I were you, I would call that inside collector back immediately, lie to him and tell him you contacted your attorney and that he says their allegation of fraud was an act of extortion. He also says that threating criminal action is implying arrest, which is against federal law for even an original creditor. He says that threating you when you called to pay is nothing short of refusal to accept payment and a breach of contractual obligations. Tell him it is HE who has committed fraud by materially misprepresenting his authority and that of Citibanks in the legal system for monetary gain.

Tell him you will be reporting this to your attorney general, and in the state where his office is. Tell him that if they take collection action in court, you will countersue for fraud, extortion, breach of contract, bad faith, and Collections Practice law violations. Tell him his ONLY way out is a payment plan that allows for reduced interest, no overlimit/late fees, and removal of all negative information from your file. Tell him you will confirm all of this in writing to him, and his Vice President Mr. Larson in no less than ten days, and you will call back in twenty for an answer.

But don't send cease and desist letter - they'll sue in no less than 3 months.

If you want the whole trick list of cheating attorney thieves, let me know. I wrote an FAQ on it last month. Anything you send it writing, CC: it to "S. Larson" the Vice President of Operations to shake them down. This is useful in negotiations.

Jon
[email protected]

The preceding is not legal advice, is not from a licensed debt counselor, and is not provided to persons from states which providing such information requires a license.