Author Topic: Citi Bank Settlement  (Read 985 times)

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jlexus

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Citi Bank Settlement
« on: March 31, 2012 04:29:29 PM »
How do you settle with an OC? I want to apply for a car loan and the only detrimental item on my credit report is this charge off. The alleged doubt got charged off 2 years ago.  The account got passed around from CA to CA and is now back with the OC. I DVed the CAs and have not heard them except for a letter from the OC saying that they received my Cease and Desist letter and that this may cause them to take seek legal action. 

I tried calling the OC to settle on the alleged debt but I got this rude and abrasive rep.  I recorded the conversation but didn' get anywhere. 
Question is how do I settle with the OC and get the negative TL removed?   Especially with a large OC like Citi.  I need to get approved for a loan and don't to wait 7 years.

ladygarner

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Re: Citi Bank Settlement
« Reply #1 on: March 31, 2012 05:02:23 PM »
A C&D should only be sent if the alleged debt is past SOL for legal action. Otherwise, you may get legal action.

Recording conversations with the OC are futile if you are seeking FDCPA violations. FDCPA does not apply to the OC.

Others may have had success with an OC's TL removal and will comment. My understanding is that Citi is tough.

It sounds as if you are looking to obtain a pay for delete. Keep in mind this may not happen and you will have to wait for the TL to drop off.

Settling the alleged debt will only show as more recent activity with the CRA's and affect your credit more at this point.

It appears you woke a sleeping dog.
Thanks to all that helped me go from :-[ to :karate: 

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Fighting Irish

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Re: Citi Bank Settlement
« Reply #2 on: April 01, 2012 03:54:25 AM »
+1

Any charge off that's over 2 years old is not going to affect your credit that much. Add to that the fact that PFDs are not that easy to obtain, and you may just find you are better off leaving it alone.

If you have other credit that you have handled well, that will shore up your FICO much more than this old account will drag you down.

Dang it, Jim! I'm a nurse, not an attorney!

(The rest of you, keep that in mind, too.)

jlexus

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Re: Citi Bank Settlement
« Reply #3 on: April 01, 2012 01:09:05 PM »
So a 14K charge off won't affect my credit score that much after 2 or 3 years? That's pretty good news.  I have been paying my other credit card regularly on time every month for the last 2 years. I guess I should check my FICO score.

Fighting Irish

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Re: Citi Bank Settlement
« Reply #4 on: April 01, 2012 05:25:21 PM »
Equally important as the on time payments is the credit line to credit balance ratio.

The best is less than 10% utilization. IE: you have a total of $10,000 in credit lines, your total owed is under $1,000.

If your utilization is great than that, rather than offer a penny to that old TL holder, I'd shove every penny into bringing down my balances.

If you really want to improve your score, then learn what actions will do it best and fastest.

If it's paying down balances, then learn about the snowball method, and use it. Add in the extra cash from everything that you can save on while you're working on getting balances down.

I don't go out for coffee. But if you do, if you are in the habit of stopping and grabbing coffee and a little something on the way to work, just making your coffee at home and skipping the treats will give you a extra couple hundred to throw at the CCs every month.

Most people have a lot of recurring costs that they don't think about, because they've become part of their lives. But cutting them can help if you're trying to knock down credit balances.

A higher deductible on car, home owner or renter's insurance. A lower limit for texts, or data plan for a cell phone.

They can add up.

GOOD LUCK.
Dang it, Jim! I'm a nurse, not an attorney!

(The rest of you, keep that in mind, too.)

maggie22

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Re: Citi Bank Settlement
« Reply #5 on: April 05, 2012 03:01:19 PM »
Just wanted to add that some states have laws which extend fdcpa type prohibitions against OC's.

Fo example:  Michigan Extends Debt Collection Protections Against Original Creditors

Under its Regulation of Collection Practices Act, a "regulated person" under the act includes employees of the creditor so the OC's employees have to play by the same rules as outside collection agents.

The downside is there is not much punch in the penalty, I think it's around $50 bucks.

However, given that they are still responsible for attorneys fees and depending upon how much they wish to fight they could end up with a verdict in which they owe $50 bucks for the violation and 35 hours X $250 hr in attorneys fees.

innocentme

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Re: Citi Bank Settlement
« Reply #6 on: April 05, 2012 04:39:23 PM »
Oregon applies to OC employees too. 

$200 per action.  :vbfrown:

But it does allow for punitive damages. 
I am not an attorney.  I just love to know my rights, and to defend them at all costs.  Even if that means going on the offensive.  I'm always nice, until I'm not.

 

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