Am I reading that right? American Express is not a “bluff” creditor, so we do take any legal threats from them seriously once a file has escalated to placement with a collection attorney firm (licensed to operate in the client’s home state). O-Man, yes, the negative mark should come off after 7.5 years from original default date. Did your employer just hand you a card or did you have to sign an American Express agreement for the card? FYI, the settlement mainly pertains to “consumers who paid old debt in response to deceptive promises to report Cashier’s check by Federal Express is one method, but you want to be sure that you’ve coordinated payment method with the agency. Debt Consolidation Forums Debt Consolidation and Debt Settlement forums American Express Charge off. Freedom Financial is telling me that they will not settle with AMEX, but with the collector. Take the high road and negotiate in good faith with your creditors. And of course, there may be many situations where it makes good sense for the consumer to take the approach you recommend. This provided some much needed advice. Further, if the account is settled for the less amount than the balance, how does this affect my credit score? This is also called an ACH transaction, and it means you provide them the bank routing number and account number off your checking account. American Express reports to the major credit reporting bureaus, with charged off accounts listed on credit reports. Debt validated, and account moved to an in-state legal firm for your troubles! I’m in a Debt Settlement program with Freedom Financial. You’re in a financial crisis and want to obtain as deep a discount off your balance as possible, but you also have to be mindful of the legal risk that mounts whenever you are behind on payments with a creditor. I have an account with AmEx that charged-off in 2006 (original c/o amount was $42k). Derogatory entries are supposed to drop off after 7.5 years. It just has to cover the essentials – the account number, amount of settlement to be paid, any payment installments listed clearly with due-dates, and the transaction has to be defined or referred to as a “settlement,” or “settlement-in-full.” Simple enough! Thanks again for your expertise. For example, if you are two payments behind, the representative will generally not discuss settlement yet and will only speak in terms of different payment options. American Express does not charge a credit card transaction fee and a discount rate for every industry category. It just has to cover the essentials – the account number, amount of settlement to be paid, any payment installments listed clearly with due-dates, and the transaction has to be defined or referred to as a “settlement,” or “settlement-in-full.” Simple enough! Money Personality Quiz and Test. Antitrust investigations in Europe. On November 15, 2004, Mastercard Inc. paid damages to American Express, due to anticompetitive practices that prevented American Express from issuing cards through U.S. banks, and paid $1.8 billion for settlement. What Are Your Spending Habits? In fairness to FFN, I don’t believe for a minute that GCS would refuse to settle if FFN presents a proposal they can accept. - Jenie, Attorney General Presentation About How to Stay Off the Radar. "If you already have a low score, [a charge-off] will still drop your score but by fewer points," says Ryan Greeley, Denver-based editor of the Better Credit Blog. Everything was going fine for a 4-5 months and all the sudden the AMX account shows as a Charge Off on my credit report which I think is having a significantly negative effect. You can avoid this by shaving off no more than $600 on the debt you owe. Debt settlement with Zwicker & Associates - American Express. Don’t play games or make up stories about your situation. Achieving a settlement with any creditor is a matter of balancing RISK versus SAVINGS. The corporate cards are generally issued to the corporation itself, even though your name appears on the card, so generally it is not advisable to attempt settlement on this type of account, as it could have a direct effect on your employment status. If you have a debt collector balking at putting the settlement in writing, then just put your foot down and insist that you will only proceed on the basis of a written agreement letter. O-Man, it’s not clear yet whether or not the recent settlement between Amex and the CFPB & FDIC will affect charge-off accounts like yours. I always thought I kept re-aging the account each time I paid it, thus extending the statute of limitations. Instead of paying fees as high as 20-30% of your TOTAL DEBT, it’s far more affordable to work with a professional consultant who only charges 15% of the SAVINGS achieved via the negotiations. I’m not sure what to do since I still believe I’m not fully responsible for the charges, and I cannot afford and do not want to pay. It’s still actively reported as a charge-off on my CR, but, aside from our mortgage, it is my only account with any sort of balance on it. Thanks for the great advise… Why is this relevant if you’re trying to reach a settlement with Amex? Other sources for funding settlements might include the sale of household items, collections, cash value life insurance policies, borrowing from family, or sale of property. For example, most of the major credit card banks eventually SELL their delinquent accounts to various debt purchasing companies, so when you are trying to settle an old charge-off account it’s very possible that you’ll be dealing with a debt purchaser or their collection agency. Over time, and with a series of negotiation calls, it’s possible to reach a settlement agreement on your American Express card that you can handle. But such funds can be put to excellent use in retiring a major credit card debt, when otherwise the customer would just be facing an unsustainable situation (which in turn often leads to bankruptcy). Nice article..  Once the money received from a one-time source has been expended, there is no more to replace it. But there is a huge difference between income and assets, and many consumers who can’t sustain regular monthly payments due to lack of income or other financial hardship are able to use some of their dwindling savings for the purpose of settlements. We offer training and coaching programs for every budget, and our mission is to help you negotiate effectively and settle your debt accounts quickly and safely. When negotiating credit card debt with American Express, it's in your best interest to know exactly what you're dealing with. It’s trivially easy for an original creditor to produce a stack of monthly statements two inches thick and mail it to you. Milton here from Complete Debt Solutions, my advise to all our clients is not to settle any Amex card. The settlement applies to American Express only, but other credit card companies and issuers should be aware of the issues and be "forewarned," said Janacek. Don’t panic if this happens! The former employer reversed total charges of $13K after I left the firm and told me to pay it. Why American Express Chargebacks are Different. One important tip for determining the risk factor is to assess WHERE the assigned collection agency is located. I'm hoping for a 35% settlement offer....I may be able to swing it with help from the taxman, 401k and family. It’s simply a part of the collection culture that developed at American Express, which positioned itself over the years as being “different” than Visa or MasterCard. American Express offers world-class Charge and Credit Cards, Gift Cards, Rewards, Travel, Personal Savings, Business Services, Insurance and more. I do take your point that they are usually lenient with delinquent cardholders seeking to restore the account to good standing. In such situations, the risk is greater, so we accept a higher figure than we might otherwise. Start out with an offer around 20-25% of what you owe, but state this in terms of a dollar amount. I’m not too concerned with it, it is my “stupid tax,” and a big one at that! The reason is because they have the documentation. This isn’t a matter of “trust,” or “distrust.” It’s just simple common sense that any agreement modifying your contract with American Express (or any other creditor) must be in writing. more power.. If they are not a law firm and they are in some other state than yours, then the situation is low risk compared to assignment to a law firm in your state. Don’t be greedy. Be smart. I was sent a list of charges but believed I was not responsible for half of those charges. That’s all I can afford. Many websites offering advice on settlement of credit card accounts recommend sending “debt validation” notices to collection agencies or creditors, in theory “putting them on notice” that you are aware of your consumer rights and demanding copies of their backup documentation. American Express denies these claims. 11-MD-2221 (NGG)(RER), along with the … It’s quite common for American Express to assign their accounts to third-party collection agencies well before the point of charge-off at 180 days late, often as early as 90 days late. Many websites offering advice on settlement of credit card accounts recommend sending “debt validation” notices to collection agencies or creditors, in theory “putting them on notice” that you are aware of your consumer rights and demanding copies of their backup documentation. I have an american express credit card. Now, will that still drop off my credit report, even though I’m making monthly payments? THANKS! This isn’t a matter of “trust,” or “distrust.” It’s just simple common sense that any agreement modifying your contract with American Express (or any other creditor) must be in writing. I have a personal Amex account and a corporate Amex with my new employer, so far they don’t seem to get affected. Voila. It’s common to carry a personal account and then receive one issued by your employer, to cover work-related travel expenses, per diem costs, and so on. If you’re drowning in debt and want some expert advice and coaching as you negotiate through your settlements, please visit us at ZipDebt.com. These are one-time funding sources, in other words. You are happy with the result and you can fund the settlement ok. The first rule in settlement with American Express is therefore to avoid any sort of tactical “games” like debt validation, which are generally unnecessary anyway. I have two accounts with American Express. Prior to the financial crisis of 2008, American Express was not a bank like most other major credit card issuers (such as Bank of America, JP Morgan Chase, Citibank, etc.). I don’t know who to believe. Take the high road and negotiate in good faith with your creditors. I called Amex and they said they would not report to credit agency and I assume that means the delinquency of this charge will not affect my credit score. We were able to reach a debt settlement for a one-time, lump sum payment of $12,000, without having to file an Answer to the lawsuit. Again, I plan on paying this monster off in full, just wondering what my credit report will look like after 7 POINT FIVE years. American Express is the contractor. I think the corporate card is owned by my employer with my name on it as stated in the article. There are NO exceptions to this rule. As the negotiation proceeds, resist your initial urge to jump your offer right away, and give it some time to see how things go first. However, when you are trying to settle an American Express account, it would be a major tactical mistake. The American Express billing statement class action lawsuit stresses that because of American Express’s non-compliant disclosures, Zevon and the potential Class are entitled to recover up to $1 million in statutory damages. It doesn’t matter if the delinquent account is 20 years or 10 years. Voila. The class action settlement agreement will allow merchants to charge customers less if they use a competing debit card instead of an American Express credit card. If the charge-off exists on your report a result of your own error, you have a few options. It may be worth it to pay the taxes on the amount of debt that you don't have to pay, if you can dramatically reduce what you owe. This is also called an ACH transaction, and it means you provide them the bank routing number and account number off your checking account. Like I said earlier if you pay it in full Amex will give your card back and if you cannot then settle with them or the agency handling the account.  So Freedom Financial are not doing their job properly, what they are doing is making you stay longer in their program and this gonna cost you a few dollars. However, the impact lessens as the listing ages, and negative credit information is removed from credit reports after seven years. If the account is presently being reported current standing, then it will probably show as a closed but positive account. If you’re more than three payments late, the odds are good that you’ll be hearing from an outside collection agency. Over time, and with a series of negotiation calls, it’s possible to reach a settlement agreement on your American Express card that you can handle. Like Charles you can do it on your own.  So do you have many accounts with Freedom Financial? Consumer Borrowing Up in June. 91st day went to Zwicker....120 days to Apothaker with 0% offer to settle full balance or 55% settlement..lump sum...i'm at 150 days without a payment....close to chargeoff. There are NO exceptions to this rule. The process is different, though, in that it is typically more straightforward. Can they be applied against the settlement amount? View the outcome, letters, cost, time to complete. The Settlement Notice explains the litigation, the settlement, your legal rights and what benefits are available.. Judge Nicholas Garaufis of the United States District Court for the Eastern District of New York is overseeing the case known as In re American Express Anti-Steering Rules Antitrust Litigation (II), No. After Charge off: Settling American Express debt for optimal savings can require your account to be charged off. Many of those agreements I’ve seen require you to personally guarantee the debt. Where the risk is lower, we can hold out and try to do better on the settlement percentage. Amex have the HIGHEST standard when it comes credit rating. American Express sued my client and the business for the full amount due, plus court costs and attorney’s fees of $630. Charge-offs can occur even if … If I settle what will happen to the points? However, other major credit card banks have been known to sell their delinquent accounts to the highest bidder. The first offer you receive from an agency will rarely be the best offer available, no matter how convincing the explanation that this is “the best we can do.”. Am I able to negotiate a settlement with the 3rd-party collections agency in exchange for them removing the charge-off from my credit report? I Can’t Quit the Debt Program I’m in That... Is the FBI Letter I Got About Titan Legal Processing... https://getoutofdebt.org/114824/can-use-american-express-points-settle-american-express-card-balance. I have a $19,000 balance with American Express. Be aware that you’ll hear various kinds of options presented to you depending on how far behind you are on payments.  Milton here from Complete Debt Solutions – What Amex are telling you is they don`t recognize this company or they have “a” history. Hello, I have a credit card with American Express that has an outstanding balance of around $12,000.00. With your letter in hand, then you can make your payment. Any idea why they would do this when the other accounts from other creditors are just listed as something like “Closed – debt mgmt plan”? Amex are very good with their clients. Why did I get a Settlement Notice? Copyright 2020 Manchester Publishing Company, Inc. All Rights Reserved, Making the Tough Financial Decision, Part 3 — Paying Off $63,000 Credit Card Debt & Lessons Learned, Making the Tough Financial Decision, Part 2 — Our Dream Home Goes on the Market, Making the Tough Financial Decision — Our Dream Home Goes On the Market. The company converted to a bank holding company structure in November 2008 in order to become eligible for Treasury Department assistance under the infamous “TARP” program. Understand that the majority of settlements with American Express are negotiated through these third-party collection agencies. The reason is simple: unlike larger rivals like Visa and Mastercard, American Express serves as an issuing bank in addition to providing card payment … Don’t be greedy. As the negotiation proceeds, resist your initial urge to jump your offer right away, and give it some time to see how things go first. I have called the service number several times – usually from the service desk at Macy’s. What are my chances and what kind of approach should I take. It’s quite common for American Express to assign their accounts to third-party collection agencies well before the point of charge-off at 180 days late, often as early as 90 days late. Most of them prefer check-by-phone or electronic check (same thing). When it comes to settlement with American Express, there are some specific facts about this creditor that you should be aware of. In addition, many people carry a lot of Amex debt as part of their overall mix of accounts. American Express is not a “bluff” creditor, so we do take any legal threats from them seriously once a file has escalated to placement with a collection attorney firm (licensed to operate in the client’s home state). This creditor rarely sells its accounts, no matter how old. The first rule in settlement with American Express is therefore to avoid any sort of tactical “games” like debt validation, which are generally unnecessary anyway. Sometimes these alternate programs can include low interest rates and lower monthly payments, and for some consumers this level of relief alone may provide sufficient breathing room to get a handle on their financial situation. One more important point about settlements with American Express. I have a corporate card that my former employer claimed I had personal purchases on. I am currently in the process of trying to kill off my Macy’s acct. You can always increase later. Debt settlement is just as much about managing risk as negotiating savings. The company converted to a bank holding company structure in November 2008 in order to become eligible for Treasury Department assistance under the infamous “TARP” program. Thanks to Steve for permission to repost here on The ZipDebt Blog.]. But my understanding is that Amex will have to send notices to former customers if their accounts qualify for any refund. Select the payment amount to be withdrawn each month: American Express Credit Cards can choose between paying the minimum amount due and the full balance due on their billing statement. Let’s say you are talking with a third-party agency in a different state and they have agreed to a 40% settlement. I also have like 500,000 points. It’s quite common for American Express to assign their accounts to third-party collection agencies well before the point of charge-off at 180 days late, often as early as 90 days late. If you've fallen behind on your American Express bill or are simply tired of throwing away money each month on interest and fees, debt settlement may be one option for eliminating your debt quickly. Be aware that you’ll hear various kinds of options presented to you depending on how far behind you are on payments. Get on the phone a couple of times a month and let them know about your situation. payment to credit bureaus will be reimbursed the money they paid plus interest.” So it’s possible you might receive some relief on this account. Sign a personal Amex card is owned by my employer expended, there is no more replace. Each time I paid it, thus extending the statute of limitations odds good... 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