This question re: my credit card bills..10 pnts for best answer?

Question

I had to go on maternity leave early and use the full twelve weeks, I fractured my pelvic bone, so at the time we were really tight on money. I paid the important bills, mortgage, insurance, car payments, and I held off on my credit card bill...well I spoke with somebody and explained the situation.... with my first paycheck I paid $100 on my credit card. Our limit is 2,000, and with the late charges and interest, it was over the limit. A represenetive called me, and told me if I pay 250...I think we were over by 400, he would settle the rest, and make us current. Well, the next bill came around, and we were still over?? I called and spoke with somebody, and they told me that the man misinformed me, and that they couldn't do that, but if I made another large payment, that it would make my current balance under our limit. Can they do that after making a verbal agreement with me, and I pay?

Answer 1

First of all, credit card companies are scum.  They will make a lot of verbal agreements but rarely if ever hold up their end of the bargain.  The reason is that a verbal agreement will not hold up in court (because you have no proof).  For any type of settlement like that, demand to have it put in writing.  The best course of action is to pay off the amount to get you below the limit plus a couple hundred bucks and not use this card until you get the debt paid down further.  A word of caution: if you do settle with them, even if it only knocks a couple hundred dollars off of the debt amount, it will hurt your credit score as it will show that you didn't pay off the full amount of the debt.  You will also get dinged on your score for late/missed payments or paying less than the minimum.  Therefore, time is of the essence.  Get that thing cleaned up as quickly as possible.

Answer 2

There's no such thing as verbal agreement. In court, they would never accept that as a proof of agreement.

If you want to play safe, ask them for a letter with the terms of the verbal agreement.

Anyway, you are better off paying to amount that you own over the limit and then start paying the minimal necessary to pay your full debt.

Considering that you only have $2400 (by what you have said) you can start with a $401.00 payment and then payments of $84.00. This will first bring your debt just under the limit, which will help you with the interest rate and will help you finish your debt in 24 months.

During this time you should not use this credit card.

_______________________________

http://www.dollartoolbox.com

Answer 3

You can try and pursue. It seems like 50/50 to me. You never know what the courts will decide and you could be worse off because of the court expenses. It is not worth it to hire an attorney. You could contact your state government's consumer affairs department to see if they can offer any assistance. In Massachusetts, this is what I would do.

It is infuriating that you are trying to do the right thing and they just keep essentially blowing you off. No wonder many folks don't bother calling or explaining. Ever get the sense that aliens are taking over??  I'm not serious by the way. It is aggravating. I would call back and see if I can speak with the manager and then just keep escalating it. Speak to that person's manager and so on. Someone up the line should have the authority to make a decision that makes sense. You are still a customer. But really you aren't that important of a customer and that's why you are encountering this. Sad but true.