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

“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”

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.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

13 Comments

  • my mother had her social securty card stole and someone charged 6000.oo dollars on her credit, now she cant rent a apartment cause of that, what can we do

    • She should have notified the credit card at the time it was discovered. That amount would have been deducted from her account. She can also contact each of the credit bureaus and place an identity theft statement on her report to let people know. Finally she should consider using the free credit report monitoring service to make sure new surprises don’t happen. See https://getoutofdebt.org/credit-score.html

      • she didnt know about it until she started getting bills saying she owes money, she dont know who to contact aabout it, she wonts to rent a apartment but cant, cause this is on her credit.
         

  • 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?

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

  • 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?

  • 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?

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

    • 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?

    • 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??

    • 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??

      • 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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