The agency is called gc services and they said they are willing to get rid of my finance charges and late fees if i pay half of the debt i owe. I originally owed them $3000 but they said if i pay 800 now and pay them back the rest within three months that it will clear up the debt owed to citi bank. This is my first time doing something like this so i accepted the deal and i have until two days to pay them the 800 but i got a statement today saying that i will be making the payment for eight hundred and they still have my original balance i owe them the 3000 and no mention of the deal we made on the phone so i got scared and went and took all my money out of the account. Are they trying to screw me?
2007-09-19 15:51:43 · 5 answers · asked by jonsantarlas 2 in Business & Finance ➔ Credit
I believe the collection agency is willing to take half because Citibank has basically written you off as a loss. If GC gets half ($1500), they keep 25% and give Citibank 25%. No one is ripping you off. If you are worried at all about the "deal" just give them a call and confirm what you were told.
BUT, you will have to count the difference as income when you do your income tax next year. And since there is no tax taken out, it's big bite to have to cover $1,500.
Also, this can impact your credit score for up to 7 years.
So, if you have the money and are willing to pay up to Citibank, you should contact them (and not the collection agency).
Or just accept the deal, and worry about your credit score in the future. Depends on how important it is to you.
Good Luck
ED
2007-09-19 17:17:59 · answer #1 · answered by edco 5 · 0⤊ 0⤋
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2007-09-20 22:10:10 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It sounds like you did two things wrong. You didn't the the settlement agreement in writing and you gave them access to your bank account.
By removing the money from your account, you will now be creating more problems for yourself. Did you close the account? Chances are that they will come after any money in that account. You already gave them permission.
You need to contact them and tell them that you took the money out because their letter didn't reflect the settlement agreement. And that upon receipt of the correct agreement, you will send them the $800.
2007-09-19 17:15:15 · answer #3 · answered by bdancer222 7 · 0⤊ 0⤋
Close your account. Never EVER give anyone access to your checking account. Renegotiate any terms you might want with them and this time, have them send it in writing. Verbal contracts aren't worth the paper they're written on.
If they refuse to put it in writing, screw'em. Your credit is already messed up and paying it off only marginally helps it.
2007-09-19 17:46:10 · answer #4 · answered by Marc X 6 · 0⤊ 0⤋
Probably. Even if what they are saying is true it will still be worse for your credit if you make such a deal. Just pay the whole thing as soon as you can.
2007-09-19 15:57:55 · answer #5 · answered by Scott F 2 · 0⤊ 0⤋