I Owe Citibank And They Want to Take Me to Court. – Paul

Paul wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

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“Dear Steve,

I owe about $11,000 on a Citibank credit card and they won’t make me an offer that I can afford. They’re threatening to take me to court.

Paul”

The Answer:

 

Dear Paul,

When you sign an application for a credit card you are entering into a legal agreement to repay that loan. And a credit card is a loan.

If you fail to pay, the creditor can take advantage of all the things you agreed to in that cardholder agreement. If you break that legally binding agreement a creditor can take you to court to enforce the agreement through a lawsuit and go on for a wage garnishment or judgment.

If you can afford to make some payment then you should explore a debt management program to see if that is a valid solution. Otherwise you can take your chances at court when Citibank sues you.

Even if you present a good reason at court why you can’t pay right now you may still lose at court since this issue is almost purely a matter of law, and you did break the agreement by not paying as promised, and that court does not have the power to change your legal agreement. But another court does, the bankruptcy court.

Bankruptcy is the only legal tool you have to force the creditors to either accept a payment you can afford or wipe the debt out completely. You should go talk to a bankruptcy attorney and see if bankruptcy is right for you. Click here for a free bankruptcy consultation with a local bankruptcy lawyer.

Big Hug!

I Owe Citibank And They Want to Take Me to Court. Paul citibank ask the get out of debt expert
@GetOutOfDebtGuy

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  • Steve Rhode

    This has been going on a bit more these days. I’ve even seen some cases where the creditor waited till the last few payments and then refused the rest and went back to the full balance owed.

    Do you an agreement with Chase in writing or was it just over the phone?

  • Fitz

    sure would love to see the documentation as the “payoff plan” you entered into may be a contract modification that you can enforce.

  • can’t believe it

    We entered into a payoff plan with Citibank to satisfactorily close out the Accounts.  Citi was to Deduct fixed amounts from our checking account on specific dates until the balances were 0.  This settlement was interest free.  After 12 months they stopped the deductions, and charged me interest and penalties going back to the original balances.  We called them, and we were told we are not eligible for the program to which we belonged.  I will only pay based upon my last agreement w. Citi.  I have documentation.  Am I in trouble?

  • can’t believe it

    We entered into a payoff plan with Citibank to satisfactorily close out the Accounts.  Citi was to Deduct fixed amounts from our checking account on specific dates until the balances were 0.  This settlement was interest free.  After 12 months they stopped the deductions, and charged me interest and penalties going back to the original balances.  We called them, and we were told we are not eligible for the program to which we belonged.  I will only pay based upon my last agreement w. Citi.  I have documentation.  Am I in trouble?

    • Fitz

      sure would love to see the documentation as the “payoff plan” you entered into may be a contract modification that you can enforce.

    • http://GetOutOfDebt.org Steve Rhode

      This has been going on a bit more these days. I’ve even seen some cases where the creditor waited till the last few payments and then refused the rest and went back to the full balance owed.

      Do you an agreement with Chase in writing or was it just over the phone?

    • Sdg Works

      They did almost the same thing to me.  I’m trying to find out what I can do to fight them.  We had an agreement and they defaulted.  But they are so big, how can you fight, even when they defaulted??

    • Sdg Works

      They did almost the same thing to me.  I’m trying to find out what I can do to fight them.  We had an agreement and they defaulted.  But they are so big, how can you fight, even when they defaulted??

      • Fitz

        You can fight them and you can win. You must an enforceable agreement. Do you have anything in writing that memorializes the deal you made with them?

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