Negotiated credit card debt reduction, but is asked for more
Q: I managed successfully or so I thought, to negotiate a credit card debt reduction with Capital One, down to $1,800 from $7,000. That was almost a year ago. Yesterday, I received the letter from Capital One collection department stating that I owe almost $6,300 in debt - the $5,200 that was supposed to be forgiven plus interest and fees. Can the credit card companies come back like that and ask for more money after the agreed-upon debt reduction? What are my options? I am going to school and work in Target making $8.50 in hour, and fear of potential judgement.
A: That is something you may want to discuss with the lawyer who is licenced in your state. Do not just jump among credit/debt forums and such. Theoretically though, if you have a written agreement, and I assume you do, with Capital One on described debt reduction, you should be just fine politely telling them to go elsewhere. I never heard of credit card issuer coming after someone after they settle debt. Once credit card issuer agrees to accept a smaller amount than the one you owe for the full satisfaction of the debt, it cannot come back after you for a deficiency. Still if you are worried, then talk to a lawyer.
If you negotiated that debt reduction and have nothing to prove it with, then your situation is much worse. Try to renegotiate the new amount and get everything in writing. If Capital One refuses, run, do not go to the lawyer. Either get the lawyer do some negotiating for you or consider filing for bankruptcy.
Mon Jul 26, 2010 02:07PM | Copyright: www.bad-credit-advisor.com | More in Credit Card Debt | Comments (0)
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