Any Credit specialist here?

[3Fitty]

Re: Any Credit specialist here?

A lot of good info guys. I sent a PM to Nick, discussing my thoughts.

A few things... because credit is so tight, credit card companies can terminate credit or change the terms of your agreement on the first late day. They normally won't do it, but because of the credit crisis, they are doing it more frequently. In fact, they are doing some worse things than what happened to Nick.

For example, when you have credit with a particular company, they build a credit profile for you based upon where and how you use your card. If you fit into a "delinquent" profile, they can (and will) change the terms of your agreement without your consent EVEN IF YOU HAVE PERFECT CREDIT.

So, because you and Joe Deadbeat, shop at the same places and have similar spending habits, your credit could be affected. Crazy, but true.

Exec. Det.,

Very good! Most people don't know that, but the rate is 24.99%, 25% is considered "usurious" and usury interest rates are illegal. I told Nick to look into what the usury rates are in Texas.

What is happening to Nick is a travesty.

[onawrxhigh]

Re: Any Credit specialist here?

Add Washington Mutual to that list

Hey Nick,

I don't know if this could shed any light on this but I know before my wife and I refinanced our morgage we had Washigton Mutual. From what I had heard they were one of the banks that was taking a hit on the loans and going bankrupt/being sold. This may be the reason they what their money now not later and by sending you to collections is their attempt to get it now.

andrew

[ITAKEYOURRIDE]

Re: Any Credit specialist here?

Im not a credit specialists, but I know quite a few of them real well for the line of work Im in. I work for a repossession company and have contracts with over 50 banks, credit unions, forwarding houses, and equipment rental companies.

Im not trying to offend you, just stating the facts I know that I have learned from this job as well as speaking with the reps at the banks on this.. You got the card and agreed to there terms and conditions to pay your balance or minimum payment on or before your scheduled due date. Since you were late you are in default of the terms and conditions and they have the right to close your account and send it to collections within there company or to send it to a forwarding house for 3rd party collections. If you have or can obtain the terms and conditions, read through them closely and see if you can find a loop hole to get your account back into good standing and reinstated for use.

Normally banks are not that way to do the extreme as I mention above, but they can. They look at you as a credit risk, but every one know thats where they make there money is on the interest and the late fees. That is also normal for the bank to raise the limit to the max on another account if you have one because your other account is closed, they judge you are a credit risk and are allowed by law and your signature to raise the limit. They can even lower your credit limit on the other card also. You will need to check with your state or the FTC to find out the exact percentage.

Best thing to do at this point is try to contact the issuing banks legal dept or there collections dept and explain the situation and if you have the money, pay them right then. They may soak you a fee to pay over the phone, but main thing is to get it back in good standing ASAP. If they absolutely deny reopening the account and it is in collections before you pay collections see if you can do a settlement with a zero balance owed. Usually they will cut interest on it some for you.

They way the ecomony is heading this is what some banks are doing.

There is a bank lending for vehicles and they are my steak and potatoes, there interest is to the max it can be. 1 day after your 5 day grace period you are out for repo. Friday I got 21 order from this bank, I went out Friday night from 7:00a - Sat at 7:00a and got 9 of the 21, went back out at 9:00p on Sat to 5:00a on Sun and picked up 7 vehicles. They even plant GPS locators in these vehicles which from the laptop in my truck and my mobile broadband card from Sprint I can ping the vehicle and go snatch it up.

I repoed a friend of mine vehicle and they (Chase) refused to give it back to him, he had a credit card with them, they lowered his credit limit, raised his interest, sold the vehicle at auction, obtained a judgment again him for the difference and before he had time to make payment arrangements with them they filed a supplimental wage garnishment and emptied his savings account which he banked with Chase also to cure the debt on the vehicle. Usually banks always give the vehicles back once you pay up on the behind balance and reinstate the load because they lose if they do not.

Hope this helps!

[ITAKEYOURRIDE]

Re: Any Credit specialist here?

Also forgot to mention, if they will not work with your, make sure you get a letter from the credit company or the collections company you paid in full and waith 60-90 day and go to annualcreditreport.com and get your free report from all 3 reporting agencies and if it shows up, which is very possilble make sure you dispute those on there that they are paid and accounts are closed. That will help someone on the credit report when you apply somewhere else for credit. There is even a company out there that I can not remember the name of that a rep at HSBC told me about that actually can help remove stuff like that off a credit report. I will have to ask her when I talk to her again.

[mshu7]

Re: Any Credit specialist here?

Credit card companies are stooping to all time low's. Check out DaveRamsey.com. I'd even suggest calling his radio show.

By using credit cards/borrowing money, you (meaning people that use CC's) set yourself up for this type of a situation. It just proves the point that cash is king. "The borrow is slave to the lender."

[ClearlyCoated]

Re: Any Credit specialist here?

Your case sounds like they are taking it to the extreme. 18 hours - maybe you catch a late fee, but not close the account.

Also, whatever happens with this lender do not close the credit account, as this will lower your credit score instantaneously.

If the CC issuer closes the account, there's nothing much you can do. But you should never close the account. It will lower your credit rating, something that I found out when I paid off two credit cards last year. I wanted to close the accounts so I wouldn't be tempted to run them up again, and I was advised that doing so would impact my credit score. It's almost contradictory, but if you have too much unused available credit, that also negatively impacts your credit score.

[ClearlyCoated]

Re: Any Credit specialist here?

Your case sounds like they are taking it to the extreme. 18 hours - maybe you catch a late fee, but not close the account.

Also, whatever happens with this lender do not close the credit account, as this will lower your credit score instantaneously.

If the CC issuer closes the account, there's nothing much you can do. But I agree that you should never close the account. It will lower your credit rating, something that I found out when I paid off two credit cards last year. I wanted to close the accounts so I wouldn't be tempted to run them up again, and I was advised that doing so would impact my credit score. It's almost contradictory, but if you have too much unused available credit, that also negatively impacts your credit score.

[Michael Stoops]

Re: Any Credit specialist here?

WAMU is taking an extremely hard line these days. I also have two credit cards with them (currently a zero balance on both) and I also have a very good credit score. But I recently got a letter stating that my interest rate had been raised to same level yours was just bumped to, Nick. My first thought was "legal loan sharking" but now I think it's just bad business.

I feel for you buddy.

[johnyB]

Re: Any Credit specialist here?

How to say tnx for the bailout..........

[Nick Chapman]

Re: Any Credit specialist here?

Thanks for all the comments guys, I really appreciate all the insights and advice you can give me on this.

Let me just say that I fully understand that they can(and did) close my account for any reason at any time. But what chaps my behind is the fact they they are refusing any type of payment from me and making me wait for the collection agency to contact me before I can take care of anything. What they are doing is forcing me to take a huge hit on my credit. I am fully prepared to pay whatever I need to at this point and time, and as long as the payment is not 30 days late, then it can not be reported as late. By WAMU taking the actions that they are, they are forcing me to get that delinquency hit on my credit report, and that is just plain wrong in my book. How can they force me to be more than 30 days late??

[RaskyR1]

Re: Any Credit specialist here?

Thanks for all the comments guys, I really appreciate all the insights and advice you can give me on this.

Let me just say that I fully understand that they can(and did) close my account for any reason at any time. But what chaps my behind is the fact they they are refusing any type of payment from me and making me wait for the collection agency to contact me before I can take care of anything. What they are doing is forcing me to take a huge hit on my credit. I am fully prepared to pay whatever I need to at this point and time, and as long as the payment is not 30 days late, then it can not be reported as late. By WAMU taking the actions that they are, they are forcing me to get that delinquency hit on my credit report, and that is just plain wrong in my book. How can they force me to be more than 30 days late??

I'm thinking that is BS! You are trying to make a payment and they are not letting you. Can you pay the amount in full?

[Nick Chapman]

Re: Any Credit specialist here?

I'm thinking that is BS! You are trying to make a payment and they are not letting you. Can you pay the amount in full?

Nope. What they are telling me is that they do not have access to my acount, and I am not able to pay any amount on it at all. I have to wait until the collection agency contacts me, and then I can make some type of payment. Of course that won't be for at least a month.

[dave40co]

Re: Any Credit specialist here?

Call an Attorney? They are forcing you to ruin your credit.

[Ryan L.]

Re: Any Credit specialist here?

Debit cards and Cash FTW!!!!!

Seriously though, I feel bad for you, thats just wrong.

Ryan

[sstg]

Re: Any Credit specialist here?

Debit cards and Cash FTW!!!!!

Seriously though, I feel bad for you, thats just wrong.

Ryan

In a perfect world, my friend.