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Just Stopped Paying Chase CC -- I'm Scared

Discussion in 'Debt Settlement' started by loansafe91745, Apr 3, 2012.

  1. loansafe91745

    loansafe91745 LoanSafe Member

    I have a $20k debt on my Chase credit card. Been making payments for 1.5 years, digging me & family deeper into debt. Did not make payment last month. Next one is due in a few days. I've seen all the good stories here. But I'm guess people under-report the bad outcomes. So I'm a little scared now.

    Anyone have a more recent -- year 2012 -- experience settling debt with Chase?
  2. LynnAnn

    LynnAnn LoanSafe Member

    First Do not be scared!.. We could not afford our home & CC payments(Chase included) I owed more then 20000. In my case ,they will call & try to collect ,then It will go to debt collectors. Its an unsecured debt, They cannnot force you to pay. I unplugged my phone,Im not happy about that but debt collectors can be brutal. After 2 yrs.. We finally were in a positon to file Chap 13. They will get pennies on the dollar. I am not proud of it , but I had no choice. The only thing they can do is call & send letters trying to collect. I cant tell you what to do, but an unsecured debt is just that, Its not secured by anything. They will tell you anything to get you to pay. At some point the debt collector will offer a settlement,usually about 40%;; less then you owe. Your credit is already shot so , what you do from there is your choice. It is very stressful but the bottom line is you decide whats best for you. Good Luck!
  3. chrissty

    chrissty LoanSafe Member

    ditto completely -- I have three cards with chase -- 30k total -- stopped paying them last summer -- they are all with collections agencies now -- get a note from them once a month -- that's about it so far -- if they go to an in state attorney's office then you have to worry about getting sued -- but pretty much in same boat -- prob will have to file ch 7 or 13 myself --
    we'll see --
    but -- take care of your family first --- the economy had a lot to do with all this
  4. loansafe91745

    loansafe91745 LoanSafe Member

    How did Chase treat you once you stopped paying them? Did they start calling often? Daily? Weekly?

    Did Chase make you a settlement offer before they handed it off to a collection agency?

    Thanks.
  5. LynnAnn

    LynnAnn LoanSafe Member

    Chase was fine, But be advised, They want money & will try everything to get you to hand over your banking info & make payments. I stopped talking to them for that reason we were getting no where. It went to collections in about 8 mo. Chase hardly called, sent letters , They have one goal , get money, If you need that money to live then that comes first. If I could pay I would have, I could have easily filed Chap 7 but I really do want to pay my debts. Do NOT give anyone your banking info, no matter what they tell you! Get on your feet, your unsecured debt comes last. I sought advise from a lawyer(consults are free)Debt collectors will call everyday, several times.. By then Chase has already written off the debt, Only you can decide what to do then, No one can take anything from you..
  6. loansafe91745

    loansafe91745 LoanSafe Member

    That doesn't sound like Chase is "fine." Is that even legal (asking for your bank info)?
  7. LynnAnn

    LynnAnn LoanSafe Member

    They will attempt to have you make a payment by phone(via debt card or checking info) Or set up reaccuring payments.
  8. fightforit

    fightforit LoanSafe Member

    Are you aware of what Chase is doing with their collection?

    [h=1]Chase stops suits against credit-card holders[/h]
    ByAlain Sherter

    [​IMG]

    COMMENTARY Revelations last year that many of the nation's biggest banks were illegally evicting homeowners by "robo-signing" foreclosure documents triggered a flurry of federal and state investigations. Now, as American Banker reports, the scandal may be widening to another common type of consumer debt -- credit cards:
    JPMorgan Chase & Co. has quietly ceased filing lawsuits to collect consumer debts around the nation, dismissing in-house attorneys and virtually shutting down a collections machine that as recently as nine months ago was racking up hundreds of millions of dollars in monthly judgments....

    Robo-signing, or the high-volume production of signed legal documents, has been a key element of the governmental and media foreclosure reviews. Chase's current pullback raises at least the possibility that at least some banks may have documentation problems in other business lines.
    JPMorgan Chase (JPM) isn't only abandoning efforts to hunt down outstanding credit-card payments -- it's also firing bank employees involved in recovering the debt. American Banker, a daily trade publication that follows the financial industry, says the Chase last year dismissed "numerous regional collections teams."
    It's not clear why JPMorgan is withdrawing suits against credit-card users. The banking giant won't say. But the move follows several legal rulings in state courts that cast doubt on the validity of banks' credit-card claims. And in a federal whistle-blower complaint filed last year, a former vice president at JPMorgan, who worked on sales of overdue credit-card loans, alleged that bank employees robo-signed paperwork used to seek legal judgments against card users.
    The executive, Linda Almonte, also said that many JPMorgan account holders owed less on their cards than the company claimed, and that some customers facing legal action had paid their card obligations in full. JPMorgan settled the suit, in which the executive claimed she was fired after alerting the bank that it was missing key legal documents required to sell credit-card debt, last spring after a court refused to dismiss the case. Former exec accuses JPMorgan of illegal credit-card debt collections
    Bad robot: Big banks are still faking home-loan documents
    Say on pay: Complaints about debt collectors surge
    JPMorgan recently has backed off efforts to recover credit-card debt in at least six states, including California, Florida, Illinois, Maryland, New York and Washington, according to American Banker's Jeff Horwitz. As The Wall Street Journal reported last year, the company dropped more than 1,000 lawsuits nationwide aimed at collecting on delinquent loans. One reason -- sloppy or fraudulent documents used to prove that JPMorgan had the right to proceed with the cases. One New York state judge told the WSJ that such practices are more common than in foreclosure cases, describing it as a "significant problem... that's widespread and yet given virtually no attention."While it's not known exactly why JPMorgan is abandoning many credit-card claims, this much seems clear: the bank wouldn't leave money on the table willingly. Tracking down credit-card debt is big business for banks. Chase last year recovered $1.4 billion on defaulted credit-card loans, American Banker notes. Going to court to collect the debt is also an excellent bet for banks, with lenders winning more than nine of 10 suits filed against account holders.

  9. Tnado

    Tnado LoanSafe Member

    I just settled my Chase CC debt ($38,000) for about $6000. I stopped paying Sept. '11. Settled it Feb '12. Here's what you should do...

    1. Expect to get calls many times a day from chase. Do not answer these calls. Do not return these call. There's a good thread on this forum that gives advice on how to avoid phone calls. You should not have any contact with chase until you settle.

    2. Save your money for 5 months, then call their settlement department directly (866-339-8391) and tell them you're interested in settling. Don't make an offer. Let them make an offer. This offer will be too high. No matter what their offer is, counter with an offer that is lower than the amount you can pay. Do not give them any financial information about yourself. Just tell them you're unemployed and think you may be able to borrow some money from relatives. If they turn it down, thank them and hang up.

    3. Continue ignoring their calls for another month. Call back again and try again. If they accept, then arrange a 3 month payment schedule. Get their offer in writing. If they turn it down, thank them, hang up and go back to ignoring them.

    4. Call back every month until they accept your offer. From what I've read about chase, they'll accept between 10 and 20 percent for cc debt. If you go past 6 or 7 months without making a deal, you might have to start dealing with collection agents. However, this does not change your strategy. Ignoring them is the best strategy. You can settle directly with the collection agent, but they'll probably try harder to scare you first. Don't let them scare you. All they can do is sue you and then you can still settle before going to court.

    All that said, part of me wishes that I hadn't settled. I've read that Chase has not been suing for cc debt and some suspect it has to do with them not wanting to open themselves up to revealing all the robo calling dirt they're hiding. I suspect they wouldn't have sued and I could have waited out the statute of limitations on the debt. But I ended up settling because I had the money and wanted to move on. Everyone has a different threshold for this stuff.

    As for bankruptcy... you don't have to consider bankruptcy until after you've been sued (which will likely not happen). Even if you're sued, you'll still have plenty of opportunity to settle. Even in the unlikely event that you go to court, they'd have to win a judgement and then take you back to court to force you to pay the judgement (garnish wages, bank account, etc.). This is years away (if at all) and Chase does not want to be paying lawyers thousands to dollars to work on this for years.

    And one last thing... once you settle, you may be required to pay taxes on the settlement as income. There are ways around this, but it's complicated and you should consult with an accountant to prepare for this.

    Hope this helps. Good luck.

    Tnado
  10. IOAlot

    IOAlot LoanSafe Member

    Yes, it is scary to be in this situation.

    Everyone has their own thinking on settlements and I agree with Tnado, with an exception.

    My wifes 2 Chase cards were our first to settle for 35% after 4 missed payments, they were our first so we may have done better if we waited but we were excited.

    I gave then my hardship over the phone after about a month of not answering. After that I would answer their calls about once a month and just say, sorry, my situation remains the same and do not have the capacity to pay. If they persisted to continuing the conversation, I would tell them Ive already explained my situation previously and politely end the conversation. After 3 missed payments we decided to test the waters and inquire about a settlement, the first settlement was too much so we waited.

    I then did 2 additional Chase cards for myself in Dec 11 for 30% after 5 missed payments using the same strategy above.

    Yes, we could have probably done better if we waited a bit, but Chase was one a part of our enormous problems.

    Just remember, as scary as it seems, you need to be confident on the phone, don't show you are worried, they will play on that fear. Remember, they are on a need to know basis, the only need to know that you have no money and they should be scared of not getting anything unless they can give you a reasonable settlement. Have an "is what it is" attitude, if the settlement they offer is not what your looking for, tell them sorry, just cant do it, perhaps next time.

    When you do reach an acceptable settlement, they setup the payments via a checking account and then send a letter confirming the settlement. Some (posters) seem weary of doing it that way, but you should set the payments up at least 10 days out so you have time to receive the settlement letter. I have done this with Chase, Citi, Boa, and even CRAP ONE without an issue. As an additional safety measure I also set up a new checking account for this purpose and would not fund the account until the settlement was received. I would NOT do this with a collection agency, for the most part they are scum and you need everything in writing to your satisfaction PRIOR to sending them a dime, and even then, you are better off sending them a money order.
  11. warehouse

    warehouse LoanSafe Member

    Settled Chase recently - don't be scared!

    Hello, first off, beginning the settlement process can be a very scary thing. We found ourselves with over $14,000 on our Chase card and unable to pay the minimums, much less seeing any sort of light at the end of the tunnel.

    I did tons of research on how to reach a successful settlement and it worked out very nicely. They of course started calling the day after our first payment was late and we ignored them - at first. After the first month, we would politely tell them that we were unable to pay and to please only call us once a day. Luckily this worked for us but most times, you have to send that sort of request via certified mail.

    We slowly built up $3500 because we had decided that 25% was the most we would pay. After about 4 months, we told them we were wanting to work out a settlement and they came back with like 75 cents on the dollar. My husband said "We have $3500, take it or leave it." The guy laughed at him and said "We NEVER settle for that little!"

    Our reply "It's $3500 more than your about to get and I bet Bank of America will take it!" (We didn't have any more open accounts with BofA). So we waited. About 20 minutes go by and they call back...surprise! Now he's willing to take 50%. We told them that until they were ready to take our $3500 that we had - ready and available - not to call back. Within 2 days we had the agreement in hand for a settlement of 25% of the balance....$3500. This was through Chase, not a collection agency. The key is to catch them right before they sell it to a third party for pennies on the dollar.

    They WILL settle for that little because they would rather have anything than nothing. You just have to be willing to be firm and tell them "That's not acceptable" and hang up. But be ready with the money in hand for when they do agree on an amount. The guy thought he would call our bluff I think because he said "Well this offer is a first for me and it's only good for 3 days." We told him that we would have a cashier's check overnighted the next day which shut them up for good.

    *Please remember to have something IN WRITING before sending anything to them and always send a cashier's check...they will take it no matter what they say. Believe me, after they said they could only take it over the phone with our bank account number, we hung up and they called right back. They want money, plain and simple. Tell them it's what your offering or $0 when you file bankruptcy. They'll play the game and you will WIN.

    We also received a 1099 on this as well as 2 other big cards we settled but after filling out Form 982 on our taxes, we were considered insolvent on paper at the time that we settled so we didn't pay taxes on one dime of the discharged debt.

    Good luck!!!
  12. loansafe91745

    loansafe91745 LoanSafe Member

    I've missed 3 payments with Chase. They have not yet called. I checked my online profile on the Chase website, and the correct phone number is there. Weird.

    They did send a letter to my house, saying I am 75 days behind, and that there are new options available to resolve the debt (I don't remember the exact language.) I'm thinking it's probably still too early to try to settle with them.

    In contrast, US Bank started calling me almost immediately after I missed my payment with them, and calls about 5 times a day. I've been hearing positive outcomes about settling with Chase, but nothing about USBank -- they make me nervous.
  13. walkin

    walkin LoanSafe Member

    I look forward to hearing updates on your progress, loansafe. I am in a very similar situation as you are (stop payment date, balance, etc.) I hope that both of us will be able to settle for pennies, like 7 pennies, on the dollar!
  14. IOAlot

    IOAlot LoanSafe Member

    walkin

    Dont take this the wrong way but you are sleep walking if you thing anyone will settle with you for 7 cents on the dollar.

    I began this settlement crap in Feb of 11, there was so much info on this and other sites as far as settlements go, now the talk has dramatically slowed.

    My last settlement with BOA, I had a candid conversation with the rep (this was an inside rep who only delt with BOA employees, and no im not an employee), she said the monthly defaults have been falling for months so they are constantly updating their settlements. Had the same experience with Amex, settle a few in mid 11, could'nt for the life of me settle one last month. CA said Amex no longer settles before CO.

    Good Luck

    loansafe,

    A friend stopped Chase about 7 months ago, they have been and are still sending him settlement offers, latest was 15%. He has NEVER spoken to them, and obviously it has charged off.

    Myself, settled most b4 CO, anywhere from 25-37 percent, I try not to count Crap1's 65 percent one.
  15. walkin

    walkin LoanSafe Member

    LOL, no harm done my friend. "sleep walkin", I'm diggin it. I'm not new to internet forums, therefore I have thick skin.

    I normally participate in forums where I have a lot of experience in, and can contribute great information. Here, however, isn't the case. I'm still a noob, and am learning every day. This is all brand new to me. My whole life, I have paid what I owed. Now that it is my turn to get in line with many other Americans, who have been affected by this economy and can't pay what we owe, I'm here to learn.

    With that said, sure, the 7percent; settlement would be sweet, but yeah, maybe unrealistic. I'm not ready to post what I would really consider settling for. Whatever I can save by not paying the payments would be a good start, but over 6 months, that is more like 10%. I will see how it goes. If a settlement to my satisfaction can't be worked out, I'm willing to roll the dice that no lawsuit will come, and if it does, I'll go from there. I'm truly jumping off a cliff. 800+ credit scores were cool while they lasted, but now I'm in the trenches like everyone else, and really, I feel like I have nothing to lose. I'm ready to get it done, so I can start the 2nd half of my life with a clean slate.....
  16. loansafe91745

    loansafe91745 LoanSafe Member

    When you say "updating their settlements," do you mean that they are settling for lower percentages? (Since there are fewer defaults and therefore less to lose?)
  17. walkin

    walkin LoanSafe Member

    I'm interested in hearing a reply too, but I would guess that if there are less people defaulting, they are being more aggressive with settlements, i.e., NOT accepting lower percentages? Seems like if there is less on the plate to deal with, they have plenty of resources to go after it, by way of lawsuits? dunno, just thinking out loud....k

    In other words, I think it is possible that people like me, who waited until 4 years after the bubble popped to jump on the train, might get hosed....(hope not)

  18. IOAlot

    IOAlot LoanSafe Member

    Walkin is right, it seems they are being more aggressive. My goal was to settle before charge off, there are many who wait till after charge off and get better deals, perhaps 15-25%.

    Speaking of getting hosed, the unfortunate people who are now getting laid off, they only get 26 weeks unemployment. When I went out it was 79 weeks, and we all now about the 99ers.

    Any questions, just ask, Im no pro but did settle more than 100k
  19. loansafe91745

    loansafe91745 LoanSafe Member

    Why did you want to settle before charge off? What difference does it make to your credit score?

    BTW, I wish someone would fix this problem with the percent sign on this website!
  20. walkin

    walkin LoanSafe Member

    I agree with you about the percent sign! And, I wish we could use emoticons too!

    From what I've read, it seems that if you can settle with the original creditor before charge-off, you may be able to negotiate with them on how they will ultimately report your account to the credit bureaus. If they charge it off, and sell it to a collection agency, I'm not sure if you would be able to accomplish the same. I could be wrong, just seems like that might be the case. Hopefully IOAlot will chime in.

    If the above is true, I personally could care less how the OC reports the account. My credit is going to be hosed for a very long time, and I'm not sure if it will be worth spending 10-40 percent more to settle, for such a negligible difference in how the account is reported on my credit.

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