Topic: Letter from the OC (Citi)

[jlexus]

Alright I need some advice.   I received the letter below from the OC, 2 weeks ago. 

The back history of this is Citi passed my Acct to various CA, which I DVed. I guess none of the CA wanted to waste their time so they sent the acct back to the OC.  I elected arbitration in all my DVs and I have few violation against the OC/CAs, but ultimately I want to settle this and move on.

I am willing to borrow money from family to settle the debt.  What would be my best approach considering the letter that I received?  Lastly, should I reply to the letter?


******Citi Letter*******

Dear Joe Shumo

You recently asked us to stop contacting you about your outstanding credit card loan. We received your request and want to let you know it will affect our next steps.

If we can’t talk to you, we will need to pursue further collection efforts through a collections attorney.  This may result in a lawsuit to obtain a judgment.

We continue to believe that we have programs that may help you pay your account balance.  If you change your mind about speaking with us directly, please contact us at the toll-free number below so that we can discuss options that might be available to you.

Sincerely,

G. Goldberg
Vice President
Citicorp Credit Services, Inc

Your Citi card is issued by Citibank, N.A. and is serviced by Citicorp Credit Services, Inc. (USA)

PLEASE SEE REVERSE SIDE FOR IMPORTANT INFORMATION

The purpose of this communication is to collect a debt and any information obtained will be used for that purpose.

[cbarnett97]

Alright I need some advice.   I received the letter below from the OC, 2 weeks ago. 

The back history of this is Citi passed my Acct to various CA, which I DVed. I guess none of the CA wanted to waste their time so they sent the acct back to the OC.  I elected arbitration in all my DVs and I have few violation against the OC/CAs, but ultimately I want to settle this and move on.

I am willing to borrow money from family to settle the debt.  What would be my best approach considering the letter that I received?  Lastly, should I reply to the letter?


******Citi Letter*******

Dear Joe Shumo

You recently asked us to stop contacting you about your outstanding credit card loan. We received your request and want to let you know it will affect our next steps.

If we can’t talk to you, we will need to pursue further collection efforts through a collections attorney.  This may result in a lawsuit to obtain a judgment.

We continue to believe that we have programs that may help you pay your account balance.  If you change your mind about speaking with us directly, please contact us at the toll-free number below so that we can discuss options that might be available to you.

Sincerely,

G. Goldberg
Vice President
Citicorp Credit Services, Inc

Your Citi card is issued by Citibank, N.A. and is serviced by Citicorp Credit Services, Inc. (USA)

PLEASE SEE REVERSE SIDE FOR IMPORTANT INFORMATION

The purpose of this communication is to collect a debt and any information obtained will be used for that purpose.

This is a pretty standard form letter they send to try and scare you into calling them to try and settle

[Fighting Irish]

How long has it been since you made a payment on this account?

There are members here who found that they got very good payoff terms about about 5 months and 3 weeks.

The company has to do a charge off at 6 months, so the closer to that mark, the more willing they are to negotiate, if a negotiated settlement is what you are looking for.

[jlexus]

Fighting Irish,  this account has been charged off for sometime now,  but the OC still owns the alleged debt.

[howucantoo]

As mentioned priory this is a Pre suit letter, typical of Citicorp Credit services. (debt collection arm of Citibank)

Depending on the amount and leverage you can either negotiate or arbitrate.

But be sure to know your consumer rights and get everything in writing if you cut a deal with Citi.

[jlexus]

Thank you, Howcanutoo.  In your opinion, considering this an OC and they haven't sued yet what should I request in the settlement letter.

[kevinmanheim]

A letter will be a waste of your time, and a bad idea. They will not respond to a settlement letter, except to call you or ask that you call them. If they sue you, the letter will be used against you.

If you want to settle, and you have 20-25% in cash, call them and make an offer of 10%. Expect to settle in the 20-25% range.

I would record the call, since the OC may not put the settlement in writing.

I would only pay by money order, and only after obtaining recorded proof that the payment settles the debt in full.

I would expect the OC to send a 1099 for the balance.

If you don't have the cash to settle, expect the OC to sue you within the next few months.

[debtsurvivr]

I had two citicard credit cards.  The first one I settled at about 120 days for 28% (balance was about 17K).  This was the first one I'd ever settled.  Since the first one I did a lot of reading online about settling etc., so I negotiated a little harder on the second one.

I was able to settle that one about 2 weeks before charge off for 20% (balance about 15K).  That one took a little more back and forth, but I just wanted to give you an idea what can be done, if they try to tell you we don't settle for that amount, etc.

I'm guessing since yours has been charged off already, you might be able to get at least somewhere in the low 20's percentage, though I've not had any experience settling after charge off.

Both of these were 1 time payments, not payment plans.  Good luck

[maggie22]

I settled my Citi post chargeoff with a CA. 

I did not DV anybody, or I should say, decided not to DV a CA that couldn't sue, rather I took their calls and saved everything which allowed me to set up my claims against them.

Ultimately, I settled the account with the 2nd CA for one lump sum payment of 3K.  Inflated debt was 21-22K.

Then, after I'd settled the underlying debt,  I went after the first CA in Federal Court for their FDCPA violations which resulted in a check to me in the amount of $2,500, and my attorney received a check for $5K + his costs of $500.

[innocentme]

I got the same exact letter, word for word.  It was in response to my limited C & D.  I don't know what there next step will be.  Not too worried though.

[kevinmanheim]

Isn't there a case in which Citicorp Credit Services, Inc. was found to be liable under the FDCPA?

[howucantoo]

Isn't there a case in which Citicorp Credit Services, Inc. was found to be liable under the FDCPA?

Fox vs Citicorp  (9th district)

Don't forget vicarious liability.

[kevinmanheim]

Fox vs Citicorp  (9th district)

Don't forget vicarious liability.

Yes!

[Time2Fight]

Fox vs Citicorp  (9th district)

Don't forget vicarious liability.

This is great, I have been searching for this!  I was not exactly sure what I was looking for but I knew something about this was out there.  THANK YOU!

[jlexus]

Thank you, everyone for input.  I am going to try to settle this with the OC and move on with my life.  Of course, I will be recording every conversation and notarizing a transcript of it afterwards. My only concern is 1099.  I am still disputing the alleged debt.  How would that work with the OC and the IRS during tax time.