How to resolve my credit card debt issue? I am in a collection status, how can I deal with that?
October 13, 2009 by
Filed under american debt consolidation
An unexpected payment of $2,499.06 was posted to my Citi account on May 27th, 2005. The payment posted in error was corrected on the statement of 12/10/2005. . I was unaware of this matter until I was notified by Citi reporting my default on payment. At that time, I was in a debt consolidation program (American Debt Consolidation Inc.) which they consolidate my credit card debt and make automatic payments to my creditors. The debt consolidating program stopped making payment to Citi because they found that my balance was already paid in full since May 2005. That causes extra late fee and over-credit limit fee were billed to my account after my balance was adjusted on 12/10/2005. As of May 2005, my balance was $2,023.76 according to the statement of 06/06/2005.During that period, I was trying to contact my creditor to discuss the matter. I have already explained the issue to several representatives of my creditor. Unfortunately, no further progress was made till now.
I was trying to work with my debt consolidation program to resolve this issue. But it seems they are not very being active on this matter. I started to lose interested to working with them since it is very time consuming (they said it takes at least 3 month to send out the proposal and let the creditor to review it before making decisions). So I rather directly negotiated with my creditor instead. But I feel that it is useless to talk to customer reps because they are not authorized to lower my interest rate and elimate my over credit limit fee, pulse it hard to put the manger or related department head on the line. On the collection agency side, they are trying to help me with paying only 80% of the total debt. But I still don’t think it is fair to me because it is my creditor’s fault on the mis-posted payment at the beginning. My debt raises up to around $3000 with interest rate of 29% from May 2005 till now. My beginning banlance was around $2000.
Cant the American Debt Consolidation business help you with this since you were enrolled with them at the time and this creditor was on your list?
Plus, the credit card company should of informed the Debt Consolidation people of this mistake. They should of informed you that the debt was paid off since they considered it paid in full and quit paying on the debt on your behalf.
If not call the Consumer Protection Agency in your area, they will help you and will be a third party witness on your behalf. They are like mediators when there are desputes.
Just some suggestions
Good Luck
Dee
You just found out why debt consolidation companies are next to worthless.
Start by getting all your documents in order. If you can prove this is their fault, then send them a CERTIFIED letter, return receipt. Show them how the error is their fault. Inform them that you are correcting their bill and you will only send them what you owe, and if they don’t like it the can sue you.
If it does go to court, the judge will look all this over, and the credit card company will have some explaining to do.
I set in on a court session with a similar situation. The debtor won, and got their court costs. But we do have a very consumer-sided judge here where I live.
Just be sure you can prove all of this if you decide to take this course of action.
Bad credit is one of the worst problems to have… however there exists a solution.
I will hereby talk from my personal experience.
I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :
http://umgarticles.atspace.com/debt-consolidation.htm
if it helps kindly remember me in your voting!.. cheers!