Question:

Credit Card Written off threatning arbitration?

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I have a credit card that was written off for about 6k. Some attorney firm is writing letters threatning to take me to arbitration. I tried calling and talking with them but they didn't want to negociate payment terms they only wanted a lump sum. I now have a letter stating I have 30 days to respond or they will persue legal action. Please let me know what to do. I don't have funds for an attorney and don't have the 3k they want to settle for. thanks in advance!

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  1. If this is an unsecured credit card there isn't an awful lot they can do beyond taking you to court and getting a judgement against you.  

    If it has been four years since you either paid on the card or charged something on it they shouldn't even be able to do that - at least not in Texas.  

    Regardless of how the debt was handled if you haven't paid it you still owe it.  They just cannot really do anything about it but write letters.

    If you give them any money now for any reason it does away with the four year limitation and they can start the collection cycle all over again.


  2. What do you mean it was "written off"? Do you mean you wrote it off -- i.e., decided not to pay it?

    If so, you don't have a lot of leverage other than your ability to convince the attorneys that you can't pay, and that it won't be worth it to pursue you.  If you do not participate in the arbitration, you will get a judgment against you for the full amount.

  3. I had that happen about a rental car charge. They sent a letter just like that and they did nothing. They are just trying to scare you.  Its been 8 months since they told me they were going to take me to court. It is a scare tactic to get you to pay.

    Go to a credit forum. There are ways to tell them to get F*****. There is a site where you can send a letter asking to see rights to your debt and that they own your debt. It is a big hassle for them and if they do not respond then they have to take it off your credit. ITS THE LAW!!!

    Google a credit forum and talk to people on there. I have had several debts written and taken off my credit report (most of mine were medical). There are so many ways to get around paying it especially if you cannot afford it. The law is tricky but sometimes it works in your favor.

    P.S.

    I would not pay them a dime!!!! Good luck

  4. When you say "written off," do you mean that the credit card issuer wrote off the balance as a bad debt (and received a tax writeoff for it)?  If so, then they should not be chasing after you for the money.  Did the credit card issuer hire the attorney firm who is harassing you?  Chances are, the attorney (or whoever he is) is working on a straight commission basis, and will keep roughly half of any money collected, without helping your situation in any way.  

    It sounds to me that in your position, your credit history is already tarnished considerably, and will be helped only slightly, if at all, by paying this debt now.  Next time they send you a letter, write back to them, telling them that you do not have the money and asking that they not contact you any further if they are unwilling to negotiate terms that are workable for you.  By the way, if you are willing to negotiate terms to pay back any part of this debt, you should negotiate directly with the credit card issuer, not a collection agency or outside attorney.

    I do not know how you got into this situation, nor does it concern me.  You will probably have trouble obtaining credit in the near future.  When you do obtain credit again, you should do your best to avoid getting into a similar situation.

  5. See the following link

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