was going to let bills go to collections or bankrupt, but my creditors wouldnt work with me min pay or full?

Question

full pmt they say, I can't come up with it. offered 10-20 even 100. dont have lawyer's fee and file costs right now. excellent credit up to couple months ago. I was helping friend pay their bills, fell farther behind on mine. I had an American Express charge card, pay in full monthly and some of it was pay part of it each month, flex pay plan, I had bounced a check to them accid., and paid them most of it back except for 400. They said I committed fraud, illegal, also I bought stuff where I work, they said in card member agreement not allowed to buy stuff from my workplace, I didn't remember reading that, that's illegal, fraud, also I bought gift certificates, and meals where I work, when customers buy gif cert. they get cash back, so if I need $ or whatever, I'd buy a 3.00 item and get 47.00 back out of 50.00. they say cause I owe them 7800.00 that's over 5000"Factoring" They say pay 3100 by Wed. File Fraud, They will make me FELON, and call my bosses,wanttoruin life so they get$

Answer 1

Get ready to have your wages garnished, as they will take this to court and get a court order to garnish your wages. You need to find your credit card agreement. I never heard of any restrictions of not being able to buy things from where you are employed. In fact, this sounds ridiculous, and you need to talk to your boss. It really sounds as if they are using scare tactics to get you to pay.

Thylawyer is right. Since you cannot pay the amount, do not pay anymore on the account. Save the money to file bankruptcy. It usually costs about $1500 and make sure that all creditors are notified in writing. Next time pay your bills and not your friends. Where is your friend now that you are having money problems?

Answer 2

Well if it is in their agrement that you can not do purchases like that they may have a case. You would have to read the entire agrement to see if there is something like that, just because you did not read it before is not going to be an excuse.

But without knowing all of the details it does sound like you may have a legal issue that you are going to have to deal with. If you were purchasing "Gift Certificates" and getting back a majority of the money you were getting around the Cash Advance Rules and this could be a problem. I also have a feeling that this might be against your store's policy as they usually will not give more than 5 or 10 dollars cash back on gift certificates. The first thing I would do is talk to an attorney on monday to see what your options are. Most will give you a free consultation.

Bankruptcy may not be an option. If you file and if AmEx thinks they have a case of fraud they will most likey object. This means that when you have the meeting of creditors they will have someone there to represent AmEx and give their side. It would then be up to the trustee as to if they allow that debt. If he disallows the debt you would still owe the full amount.

Answer 3

I was in mortgages for about 3 years and I've seen many hundreds of credit reports. What will probably happen is that the collection account will remain on your credit report for about 7-10 years. However, what you want is for them to update the credit bureaus so that it reads paid in full, satisfied, or paid and closed. Those "better" statuses will make a big difference on your credit report and your score. The only way it can be taken off once it's on there (other than when it comes off automatically after 7-10 years) is if it was someone else's mistake other than yours i.e. the original creditor did it by mistake because of a goof in an applied payment or a dispute that you were going through that slipped through the cracks. If the creditor and/or the collection company acknowledge this and they and/or you provide proof that this is what happened, the credit beaureas can remove it and in most cases, via writing to them or sometimes a three-way call with the creditor, they will. Bottom line: as long as the status changes to "paid or satisfied or paid closed" the negative affect on your score will be minor. Example: if that's all you had wrong with your credit report and you had good history with everything else i.e. mortgage, car payment, etc for at least 2 years of history, and your middle score was "normally" above 620, very, very, very few lenders would turn you down for another mortgage. All they would want was a brief explanation letter as to what happened. Note: what you don't want is for it to just disappear and have it either remain "open and unpaid" or "closed." "Closed" is not a good thing on your credit report because it doesn't mean it was paid and it will impact your score differently than "paid or satisfied or paid closed." Best wishes...

Answer 4

Sounds like your biggest issue is with American Express. Most card companies will work with you, even if it's sub-minimum payments.

I had a bad experience a few years ago with American Express, got behind and got the same scare tactic threats. I told-em to pound sand, I knew my rights under the Fair Debt Collections Act.

Eventually, about 28 days late, I had the 3,000.00 to pay off the scamsters and authorized them to debit my bank account the full amount to keep me from going into the 30 day late report on my credit.

They "WAITED" till the following Monday to debit the account, forcing it over 30 days and YES, they dinged my report. But even worse, they took the $3,000. one day, then the next day did it again, for a total of $6,000.00 causing me untold bounced checks from my account.

It took them 3 and a half weeks to clear the matter with my bank over my $3,000 unauthorized debit, and refused to cover the bounced check charges. I had no money for a lawyer so they skrued me then cancelled my account.

Moral of the story, for the little guy, American Express is untouchable.

FILE BANKRUPTSY and you will win in the end.

Answer 5

Get the money and file bankruptcy. It's the only way out, and it treats all creditors equally.

Answer 6

We can't unerstand a word you're saying.
You were helping a friend pay bills?
Does your obligation to your friend mean more to you than your obligation to your creditors.?It sounds like your friend took advantage of you and now you're s@@@@@!