Just Stopped Paying on Chase Credit Card

jillian7982

LoanSafe Member
Sep 1, 2010
14
0
1
My husband has one Chase credit card with a balance of about $10,500. He hasn't charged on it in over a year as we have been trying to pay down the balance. The interest rate is already low at 8.24%, but we absolutely can't afford to pay it anymore and have not made the payment due on 3/1. He was unemployment (just stopped on 2/8/2013) and has been since 12/16/2011 due to the fact that he is a union carpenter and he would lose his pension and his good-standing with the union, if he began working for a non-union company.

I called the debt settlement number to let them know the situation and that we are beyond upside down on our expenses and the credit counselor we talked to about a year ago basically said that we are almost $2K upside down. My husband has no other debt except this credit card and he's so nervous that we just missed the payment and is now seeing that a late fee has been tacked on and they minimum due has now doubled. He's already going through a WF short sale, so his credit went from near excellent to mediocre at best. He really doesn't care about the credit score anymore as the short sale has pretty much ruined it, but we are nervous that they are going to try to sue us and we definitely don't have the funds for that situation. I work, but I'm not tied to the credit card in anyway, so I didn't disclose my financials when I called. I did offer about $2,000 to settle now, but they came back at 90%. There's NO way we can come up with $9,000 at this point. I declined and then called back this month to make the same offer and now they said they would get back to me. I should be hearing from them today, but I doubt that it will be accepted.

I just would like to know if any of you have had experience settling with Chase and what the possibility is of being sued. I know I had read somewhere that Chase isn't suing much anymore due to the whole robo signing that was going on, but that is still something we are worried about at this point. We have never not paid anything, but at this point he has NO money coming in and it's all going out. Our savings is diminishing more and more every month and we have medical bills galore.

Any insight or advice is much appreciated. We would like to be done with this one last debt he has at this point.
 

IOAlot

LoanSafe Member
Aug 4, 2011
121
0
0
Its been almost a year since most of my settlements, but I was able to settle 4 Chase cards at different times for 30-35 percent of the balance right before charge off. Dont answer their call for 4 months, after that, start negotiating. Read up and dont worry about being sued, you can negotiate before, during and after a law suite, although better before ;)
 

Suzy Sunshine

LoanSafe Member
Jan 17, 2013
18
0
0
You have to be late, way late before you will get a good settlement offer. For me, after about 5 months the real talks began. I made sure to talk to them once or twice a month. They are nice, just want to get a payment.

You must stick to your hardship and let them know what it is. After about 4 months they start talking about Charge Off and will let you know when that date is (at least 6 months past due). Most of the CC move the CO date to the end of the month. Chase mailed settlement offers to me. Usually for no better than 60 per cent.

After you receive one of these start making offers. Start low - 10 or 15 per cent. Do this dance for a couple of months, with back and forth offers and counter offers. A settlement of 30 per cent (of original balance) with Chase would be a good goal. And this won't come until just before Charge Off (for me, after 7 missed payments.) Save the money from these payments to use for your settlement. Good Luck, there's a lot of good advice on this and other forums.
 

walkin

LoanSafe Member
May 1, 2012
361
6
18
Like the above posters mentioned, you'll have to be patient in order to get reasonable settlement amounts. I could have waited another 2 months or so, and maybe settled for better, but I was in a hurry (because of some other things I had going on). I settled for 25 percent, 5 months after my last payment, and my balance was nearly twice yours. First offer was 60percent at 50 days late, then 50percent at 60 days, 30percent at 110 days, then finally they agreed to my offer of 25percent at 120 days late. My offer from day 1 was 25percent, and I didn't budge. That was all I would be able to afford. I had heard too that Chase isn't suing these days, but I was still preparing myself for that possibility anyway. Even if they don't sue, if they sell off the bad debt to the right/wrong collections agency, the CA can sue you.

Back when I was full throttle researching all this stuff, I remember coming across someone who had worked for chase, in their settlement department. One of the things I remember them saying was that chase will settle $15k+ of debt (I think) for 15 percent. As the debt gets lower, they are less likely to settle for so cheap. I think you can count on settling your amount for 20-35 percent, without much effort (except being patient for a few months). Good luck!
 

maineiac

LoanSafe Member
Jul 18, 2012
10
0
0
I just settled my 2 chase cards, total of 20k balance with the collection agencies. Chase would not settle with me for some reason, so I let it charge off. I was a long time customer on both cards, and never late. The week after charge off, I got settlement letters from 2 collections agencies (1 for each card) with offers of 20 percent. So, I paid them. I had previously offered 35 to 40 percent directly to chase starting at 5 months late. Go figure. Nobody ever said banks make any sense. You do have to wait until you are ,months late before they will even talk settlement it seems. I found everybody including the collection agency people to be very pleasant, as was I. Good luck!