With a credit card closed with a balance, is there any way to get them to stop late payments and interest fees

Question

My mother is in serious debt and worked with this credit card company once before to lower payments but she is still having trouble paying it and now with all the late payments and interest fees tacked on each month she is way over the limit resulting of course in another fee. She makes 600.00 a month from va and thats it. I copay her mortgage for her to have a place to live, but I can't help her with the credit cards. If she stops paying the credit card, what would happen? Could they take her to court? Could they take her house? She can't refinance because she doesn't have a job(we already tried).

Answer 1

All 'closed' means is that new purchases cannot be charged to that card. The balance still needs to be paid, or they can send your mother to collections. I don't think they can take her house, but they could, possible, put a lien on it. I don't think that's likely. They could take her to court, easily.

I would call the company, and talk to them. Ask about a payment plan, they might work with you to get paid. Does your mother have proven medical or mental problems (Alzheimer's comes to mind) that you could use when you call? Some are more understanding when something like that happens.

Answer 2

if you're in the US, state law controls what can and can't be done by a creditor.

In every state, they can sue for the unpaid balance. Usually, they sell the account to a collection agency first and this step is skipped if the debtor obviously has no ability to pay [which certainly sounds like your mother's case].

I suggest that your mother needs to completely revise her finances and spending. That will probably mean moving. Depending on state laws concerning the forced sale of one's home, bankruptcy may or may not be desirable.

Which suggests that the cheapest likely source of quality information and advice will be an honest credit counseling service. Ask around -- they exist. Ask the bank for a referral when you try to explain to them that there just isn't any chance that Mom can pay as things are and what they need to do is close the account [to prevent any further charges and fees] {interest will still accrue though}.


GL

Answer 3

There is a great place to go with this. I was in a very similar situation.

This is getting help from real people without the use of banks or credit card companies. Good Luck!

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