Fun and money

[featherynscale]

This post is mostly addressed to chainwoman, since I know she's in the collections business, but if anyone else has input, I'd appreciate it.

I have a credit account that I can't access. The creditor has shut down my online access, has not sent me statements in months, and returns my checks when I send them to the payment address. It is vastly over the line, but I would like to, you know, pay them, if they'd let me.

I have a couple of theories on why this has occurred:
1. The account keeps getting sold - I think I'm three companies away from the company I originally opened an account with. Perhaps I've gotten lost in the shuffle.

-or-

2. Perhaps they've written my account off.

-or-

3. Perhaps they've given up on normal payment channels and are gearing up to sue me for the balance of the account.

I'm guessing it's not any of the good ones, really. Anybody have any thoughts on this?

Comments

[rougewench.livejournal.com]

Is there a particular reason you have not called the company involved regarding the status of the account?


D.

[featherynscale.livejournal.com]

I fully admit before beginning that these are lame reasons.

Partially because I have hope that they have forgotten about me and see no percentage in reminding them that I exist, and partially because I'm concerned that they are going to serve papers on me, and see no percentage in reminding them that I exist.

Either is pretty useless in the long run, since if they're going to sue me, they're going to sue me, and I am fully aware that nobody you owe money to *ever* forgets about it.

[diermuid.livejournal.com]

My guess is that you're sold off. They want their money without going to court, it looks better on their banksheets. But once a debt has been sold, you can't pay the people who don't own it anymore. 8-( At least that has been my experience.

[rougewench.livejournal.com]

Just because they've written off the debt, it is never no longer owed. And actually if they write it off or forgive it, you can be taxed on the amount forgiven. Credit card companies actually report that information to the IRS.


D.

[featherynscale.livejournal.com]

If that occurs, would the IRS notify the debtor? I mean, is there a form for this?

[rougewench.livejournal.com]

If the creditor has your contact information, they would send you a 1099 form.


D.

[chainwoman.livejournal.com]

Well, it looks like several issues have come up here. Credit Cards rarely and pretty much never write off a balance... They may settle, but write off, no. If they settle the account and the discount is over $650 the company is required to file it with the IRS no if ands or buts. If the company does not file with the IRS you can file with the IRS and the IRS will fine the company $50. However, if the company files and sends you your 1090 and it comes back, well then the IRS will come after you. However, I really doubt any of this applies to you currently. However, keep in mind for what I'm about to tell you...

In reference to the creditor not sending you any notices... As credit cards never stop sending statements... Even when your account is sold the new company promptly sends you a statement, usually followed by a letter stating they are willing to settle your account for a lesser sum. So, it leads me to wonder if your credit card company has your current address? It is possible that you are considered a "skip." Meaning they can't find you. I assume that everything in regards to the house is in Carey and David's name. And if you haven't applied for credit since the move I would suspect that you are currently undetectable...

In regards to the payment issues. How are the payments coming back? Mail return? If so I would assume the address has simply changed... As credit cards love to change their addresses, which never seems to become a problem until you get behind or move and no longer are getting statements...

It is possible that the credit card has sold your account. It honestly would depend on a few things... I.E.: Which credit card company it is. Certain credit card companies are known to sale debt. Chase Manhattan and Providian I believe are the two largest... And for any one reading who has one of these credit cards, please for you own sake just pay it off and get rid of it... It also depends on your credit rating and your payment history with the company, your "collectibility."

I can honestly tell you that debt is never forgotten. Yes, all law firms and collection agencies have too many files. Your file is not fogotten, simply sitting on a list. Contacting them may bring it to somebodies attention or give them more information on you then they had before which would cause them to go forward with the account...

If I was in your situation I would try to settle the account. Meaning lump sum amount. Meaning you would have to call around to find your account... If you have a lump sum of money start the calling to the last known company that contacted you. If you don't have a lump sum start saving those payments you were sending and don't call anybody. Keep in mind that settling an account will show as income at the end of the year if they discount your bill for more than $650. To settle the account most companies will make you an offer. If you can afford it, take it. If not try to negotiate lower. If your debt has been sold chances are they will settle for around 50% (depending on what documents they purchased with your account). If it is still with the original creditor, good luck getting them below 80%. Play the unemployment card and tell them that Carey and David are giving you the money...

However, if you decide you really just want to make payments, then you're gonna have to track your account down, and negotiate out a payment arrangement with the company. My advice is to just be honest.

Hopefully, this long ass response helps. If not, call me and be more specific... Or if you have more questions, ask away.

[featherynscale.livejournal.com]

Thanks for the long-ass reply :) I figured you'd know something about this procedure.

It actually was with Providian -- I suppose you're right that they've sold it. I just think it's weird that I never got a notice. I (of course) don't have a lump sum to settle the debt with, even if they offer to settle it at 50%. I'll just hold back the checks and call them when I think I'm approaching that point.

[chainwoman.livejournal.com]

Yeah, Providian is a bunch of ass-munchers. ;-) Used to collect on their credit cards. Fun, fun. They got smart, to get the government off their backs about outstanding debt the would sell it to a company called First Select. :-) First Select and Providian are the same company though... Gotta love corporations. However, Providian got majorly sued and was going under last I heard. I'm not sure what attorney sues on their behalf now, but they had cut back on their lawsuits since they became po'. So, if they don't think your collectable, that may be why they haven't sued you... Good luck! Let me know if you need anything else. Oh, and you should get a demand letter from an attorney's office before they sue you...