Like so many of the people posting on this site I am in the midst of a financial crisis. I found some comfort in the stories of others who have had problems so I have shared my own below.
However, I will list my questions first for those of you who do not want the details.
I have been asked by a TD's in-house collection agency to consider a settlement proposal to pay of a student line of credit that is in arrears. I have already approached the branch to reinstate my monthly payments (although the rude woman on the phone insisted it was impossible) however it does seem like an attractive offer to settle for 65-50% of the $15 000 still owing.
I have the following questions:
If an account is already listed as a bad debt on my credit report what are the benefits of settling the account if I am able?
What percentage should I reasonably be able to negotiate?
What time frame is there for paying settlements? I have recently paid off a small National Student Loan, therefore I am doubtful I will be able to pay out a lump sum settlement before September or December of this year, depending on the amount of the settlement. What is the best course of action if I can not make a lump sum payment or will only be able to do so in 6 months time?
As I want to start setting some long-term financial goals, such as buying a house, what option is the best to restore my credit rating?
I would appreciate any help you can give me, I am so anxious to get some arrangement made so the harrassing phone calls will end that I am afraid I will do something stupid!
Athena
For those who are interested:
I have always considered myself an independant woman, and the fact that my husband handled the money in the few years we have been married was a choice not a necessity. He wanted to do it, I let him. I have completed my education and I am in the working world so I wanted to set some long term financial goals. I oreder an online copy of my credit report and there were a few surprises.
There were some 5 year old debts I had co-signed for and had assumed were paid off before we were married, my National Student Loan Center loan was not only reported wrong but listed three times, and a TD Line of credit was listed twice, and incorrectly. I assumed these were all mistakes and have by some miracle managed to have NSLC issue a letter acknowledging their mistakes in order to have my credit report corrected.(the key was to pay them off in full, as my balance on that particular loan was under $3000 I was able to do this.)
I no sooner got that settled when I happened to pick up the phone last weekend to be harrassed by a collections agent at TD's in-house agency. Apparently my husband had not made payments on this account in several months. I was upset and angry so I told the woman that this was the first I had heard of it and that I would like her to send me the information about my file to my work address so that I would be sure to receive it. (I haven't by the way) When I gave them my work address I specifically requested that I not be contacted by phone at my office.
When I approached my husband about this he told me that he had fallen behind. (We have had a medical emergency and periods of unemployment in the last two years) He told me he was dealing with the branch to reinstate the monthly payments now that we were both working.
The next day I had msg on my machine from collections. I waited until I got home and called to request again that they not call me at work and informed them it was a violation of the Act. They told me I was going to loose my job (unfortunately good credit is important to my position) and that they would contact my employer unless I dealt with them. They told me my husband had agreed to pay off the debt at $900.00 a week, I laughed I tried to tell them that I was dealing with the branch and they called me a liar and other choice names. I requested again that they not contact me at work and that they send me something in writing. They threatened my job again and I advised them that I had looked up the act and they could not use that type of intimidation, they hung up on me.
I foolishly called back to make a complaint and was treated more rudely by the woman claiming to be the manager. She openly laughed and commented to the people around her when I said I wanted to make a complaint. She told me they weren't there for customer service. She used more threats and inappropriate remarks than the first woman, in fact she screamed the entire time. I said I would be contacting the branch to make a complaint about her agency unless she spoke to me polietly and with respect, she said she was going to personally contact the head office in the morning to convince them to file a law suit against me because she didn't like my attitude. I finally asked for something to be sent to me in writting and hung up.
Sure enough the next day she called back and when I tried again to tell her what efforts I was making to have the account brought up to date she began to scream at me. I put her on hold and grabbed a tape recorder. I told her I was taping our conversation and again tried to tell her my arrangements she would not let me speak. The fact she was being recorded had no effect. I repeatedly asked to speak to someone else for 5-10 minutes before she transfered me to another 'manager'.
That gentleman seem more helpful, asked me if I had considered a settlement proposal to get the debt resolved quickly and offered to put the account on hold for a few days while I discussed my options with the branch. Unfortunately, he called me the next day at work and proceeded to give me a hard time even after I told him that they did not have permission to contact me at the office. I gave him the name of the woman at the branch who is dealing with my file and hopefully that will be the end of him.
I am terrified of who will call me next or what other creditors are looking for me that did not show up on my credit report. Thankfully I have been paying the Student loans out of my paycheque so I know at least the biggest part of my debt is up-to-date and paid on time.
I feel like some ditzy girl saying 'Golly, I dont' know anything about money!" and not an educated modern woman who should know better. I'm sure I'm not the first woman to end up in this position, but it would be nice to hear it from someone else who fell into this same trap.