I had an American Express card with no more than a $500 limit. I fell off on paying and am now trying to straighten my credit. Amex has reported on my credit report that I owe $945. In July I got a phone call from Nationwide Credit wanting to collect on this account. We made an agreement over the phone to settle for $300 and I told them that as soon as a settlement letter comes I will make the payment. That letter never came and when I call Amex to see about settling at $300, they are unwilling to do it.
My questions are 1. Is it common for credit card companies to use a collection agency and then reel it back to their collections department if the agency was unsuccessful? and 2. what’s the best way for me to settle this debt? I don’t have $1000 to pay them.
Yes, it is common for a creditor to send it out and pull it back if unsuccessful.
You made all the right moves and it sounds like the collection company could not secure permission from AMEX to accept the settlement.
You can try to work something out with AMEX directly or wait till it gets sent out again.
Remember, a settlement is a mutually acceptable negotiation. You’ll have to come to a meeting of the minds to reach a deal to settle. Otherwise you’ll have to pay the full amount dues, which I’m sure includes fees and penalties that made the balance grow.
Please post your responses and follow-up messages to me on this in the comments section below.