Consumer Protection Law
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You helped me previously on this matter of being disabled and recently divorced and wanting to debt settle on my own for about 20% of of owed amount.
I spoke to BOA a couple of weeks ago and told them I cannot pay and they suggested bankruptcy to me and were careful about what they said to me since I am disabled and left by spouse to raise child.
Now about two weeks later: I am receiving collection calls and a letter by a professional collections and recoveries management company.
July 9th, 2012 was the first missed payment to Bank of America MBNA.
We are looking at 3 missed payments as of today.
The letter I just received in the mail is from NCB Management Services Incorporated (Collections and recoveries management). Statement balance $15,676.
Dear XXXXXantha, Your delinquent account has been referred to this office. You are dierected to address all future correspondence and payments concerning this account to NCB Management. Unless you notify this office within 30 days after recieving this notice that you dispute the validity of this debt or any portion thereof, this office will assume the debt is valid. This communication is from a debt collector. As of the date of this letter, you owe $15,676.12. because of interest. late charges and other charges assessed by your creditor that may vary from day to day, the amount due on the day you pay may be greater.
What am I supposed to do here?
Do I still avoid talking to them for another month or do I contact them?
What do I say now if anything?
I do not see any debt settlement offers at this time.
What is your best advice in this stage of the game?
Hello again and thank you for requesting me to answer your question.
Q: What am I supposed to do here? Do I still avoid talking to them for another month or do I contact them?
A: Nothing. This is standard procedures for the credit card company. They will call and call and call.... You can talk to them if you want and just tell them that you can't afford to pay anything. Or you can keep ignoring the calls. At this point it does not really matter.
Do you remember me from before or do i need to copy any of the previous conversation?
I remember you!! :)
Its still a little early for offers from them to settle. Usually after 4 months is when they will start.
Start with the settlement offers that is...
So starting October should that be the 4 month time or does the first missed payment no count?
July was first missed
The date of the 1st missed payment is when the clock starts for our purposes.
So October 9th would be the full 4 months then?
July would be 1, Aug. 2, Sept 3, Oct 4th month
don't be alarmed if you don't get anything exactly on the 4th more... this is an art not a science.
by law after 6 months of non-payment is when they have to charge off the account, all this means is that they have to take it off their books as an active account.
So after 4 months when I call them, what do i say since they will act like they will not budge?
Do I tell them my sob story or does that bear no weight?
Yes, tell them your sob story. Their job is to make you think they won't budge when in fact they will. Give them your sob story, tell them that you consulted with a bankruptcy attorney like BOA said to and that you qualify but you really don't want to have to file bankruptcy unless you really have to.
Do I not call BOA only this company as they state?
I would call BOA directly. Often times collection agencies like this will only work the account for 30-60 days before BOA pulls the account back in house.
I have worked this deal with both BOA directly and with their collection agencies.
and I have dealt with NCB before... same deal 20%
interesting! would you wait longer than 4 months or would you call then?
I would not call them, I would wait until they call you. Trust me, they will be calling.... Tell them that you talked to your family and they are willing to help you but their resources are limited.
anytime within the 4-6 month window should work. And sometimes even after 6 months.
Basically, if they can get you to settle for 20% instead of them having to sell the account to a collection agency for 7% they will be making money.
So how do I bring up the settlement part? I tell them I am disabled and single mom and recently left and no change of wage increase from social security or long term disability? Do I then say i spoke to family and they may be willing to help but their resources are limited and they could only cover $2000 which would be the cost of a bankrupcy lawyer and that would be it. What happens if they then say no way to low but that is all I can do. Do I get off the phone or what?
That is a perfect story... if they say no, say I'm sorry that is the best I can do, you can take it or I'll just file bankruptcy. If they say no, then just hang up and wait.
They will probably throw at me that they notice I am current on Amex and my mortagage and car payment. How do I rebound from that?
just say that your ex is paying for those as they were his debts.
I just spoke to my paralegal that actually talks to the creditors and negotiates the settlements and he said just before the 6 month mark is when he gets them to accept 20%
Will the fact that he is also listed on this BOA card as a responsible party but I am the primary delay everything and make them hold out expecting him to pay in that case. He is now homeless!!!!
That 6 month mark tip is priceless!
No.... tell them that he is suppose to pay the Amex and you are suppose to pay the BOA
Also he said that is almost always with BOA direct and not with a collection agency.
I had originally mailed in copies of the divorce decree which shows the opposite? Is that a problem?
no... I doubt they will remember.
That 6 month mark/boa tip is priceless!
if i let them call as you recommend then i may vary well get the collection people. is that ok?
If you don't get BOA calling then call them after the 5 month mark
Great! May I check back with you for future advice?
Of course! Let me know how it goes when you do finally get them to settle.
You are AWESOME!!!!!! ;-)))
You are welcome!
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