Any Credit specialist here?

[Nick Chapman]

Normally, I don't like to get into personal information on a public forum, but I need some serious help I'll try to keep this as short as possible...

I screwed my credit up back in my late teens/early 20's. By 25 or so, I figured out what I did, and immediately started repairing it. Now close to 40 years old, I've spent the last 15 years paying everything on time, and doing everything right. Getting my credit score into the 700's, and basically living right(credit wise).

Due to this back surgery, I've been on Hydrocodone, which has a side effect of making me forget EVERYTHING! I forgot to pay a bill this month First time in years that I've done this. Bill was due on 2/12/2009(Thursday). On Friday(2/13/2009) I realized that I forgot to pay the bill, and immediately ran inside to log into the CC's website to pay the bill. My login was locked, and it instructed me to call a 1-866#. I did so, and the CC company told me that my account had been closed due to not paying on it. I told the lady on the phone that is was less than 1 day late, and I was calling to make the payment. She didn't budge, and refused to let me make a payment. After speaking with 4 supervisor's, I found out that my account had been closed and they sent it to a 3rd party collection agency. By this time I am furious! I lost my cool and went off on her. Keep in mind, this bill is less than 18 hours late!

Yesterday I received a letter in the mail from the same CC company(I have 2 CC's through them). This letter informed me that my other card with them has a new APR. My previous rate was fixed at 11.99%, and they are now raising it to 31.99% or prime plus 26.99%, whichever is greater.

I am absolutely in shock at this point! I have worked so hard over the past few years, and have not had anything late in 15 years. Now I feel that they are totally making a mess of my credit without reason. How can they do this to me? How can I correct this?

I really need some help

Nick

[BlueZero]

Re: Any Credit specialist here?

WOW! That's just nuts!

(As I dig through my desk to make sure I don't miss anything)

I have a good credit score and work hard to keep it that way but everyone including me misses a payment now and again. In fact just last month I payed my credit card online on the 29th when it was due on the 28th. I have American Express. I didn't even notice a late charge but I haven't gotten my bill for this month yet either.

Don't beat yourself up too much over it. That's just crazy that they did that too you. I'm sure if the economy was better it would have never happened. They are just trying too hard to protect their bottom line.

Good luck!

[Andy M.]

Re: Any Credit specialist here?

Nick,

If you have a lawyer, you probably do, or maybe even 3fitty can help you, have the lawyer call and arrange payments for you. Have the lawyer call and explain the situation. Close the account and pay it off.

Andy

[Nick Chapman]

Re: Any Credit specialist here?

Nick,

If you have a lawyer, you probably do, or maybe even 3fitty can help you, have the lawyer call and arrange payments for you. Have the lawyer call and explain the situation. Close the account and pay it off.

Andy

Oh, if were only that easy

[dave40co]

Re: Any Credit specialist here?

I hear that a lot of companies are doing this lately. Check the laws in your state and see if this is even legal. Check out the terms of your agreement too.

Bank of America is doing this that I am aware of.

[Nick Chapman]

Re: Any Credit specialist here?

I hear that a lot of companies are doing this lately. Check the laws in your state and see if this is even legal. Check out the terms of your agreement too.

Bank of America is doing this that I am aware of.

Add Washington Mutual to that list

[ClearlyCoated]

Re: Any Credit specialist here?

Incredible, I have never had an experience like yours, and I have missed payments by greater margins of time. Usually a quick call to the CC clears up the problem and even the late fee has been forgiven. It sounds like your CC company is intractable at this point. Best thing to do is pay off the balance to negate action by the collection agency. Maybe you could transfer the balance to another CC if the amount is too high to pay off in it's entirety. Some CC's even offer no interest or low interest promtional rates to do just that. Call your other CC's and ask if they have such promotions.

[Nick Chapman]

Re: Any Credit specialist here?

Incredible, I have never had an experience like yours, and I have missed payments by greater margins of time. Usually a quick call to the CC clears up the problem and even the late fee has been forgiven. It sounds like your CC company is intractable at this point. Best thing to do is pay off the balance to negate action by the collection agency. Maybe you could transfer the balance to another CC if the amount is too high to pay off in it's entirety. Some CC's even offer no interest or low interest promtional rates to do just that. Call your other CC's and ask if they have such promotions.

The CC company refuses to accept any payment. Their claiming that the account is closed and has been sent/sold to a 3rd party collection agency. When I called on Friday, I asked to make a payment to keep it out of collections, their response was that they were unable to accept any type of payment for this account

[draperd]

Re: Any Credit specialist here?

Do some research and find an email or mailing address to a VP or CEO or someone like that. Write a nice letter stating the facts and give them the opportunity to contact you. They should definitely reopen your account. Your case sounds like they are taking it to the extreme. 18 hours - maybe you catch a late fee, but not close the account.

[ColonelCash]

Re: Any Credit specialist here?

The CC company refuses to accept any payment. Their claiming that the account is closed and has been sent/sold to a 3rd party collection agency. When I called on Friday, I asked to make a payment to keep it out of collections, their response was that they were unable to accept any type of payment for this account

Something isn't right about this...for example, if your bill is due on the 20th and you make a payment on the 21st it should be applied and then given a late charge.

In many cases, if you miss a payment, the banks have the ability to raise your interest rate above your current APR (check the details of the card to be sure). Now they are saying that the account has been closed and sent to collections. Did you close the account yourself? Have you been making payments on this? Does the amount owed exceed the limit on the card? (I'm not expecting a public answer on any of these questions!)

Just my thoughts on it, although I pay my credit card off weekly to avoid this situation. Also, when I pay my bill, I always pay $.01 more than the total amount. That way, I've got a leg to stand on in court if something happens.

[Deaner5]

Re: Any Credit specialist here?

Do some research and find an email or mailing address to a VP or CEO or someone like that. Write a nice letter stating the facts and give them the opportunity to contact you. They should definitely reopen your account. Your case sounds like they are taking it to the extreme. 18 hours - maybe you catch a late fee, but not close the account.

I don't agree here, yes you want to be civil and nice about everything, but my business is worth something and I will take it to someone who will take care of my in turn for my loyalty. Matter of opinion I guess.

I used to work at a retail store's credit department (in store) and I would tell people to make a good excuse like you just got back from vacation. Also I think a lot of it matter on who you get on the other end. But I guess CC Companies are doing everything they can to collect in this economy.

[RaskyR1]

Re: Any Credit specialist here?

Hey Nick,

I was in the same boat as you and have been rebulding my credit over the last 6 years and finally got back into the 700's last summer.

One thing for sure is that they can't report it as being late on your CR unless it's more than 30 days late. Unfortunately it seems CC companies are just looking for a reason to close acounts right now with the economy the way it is.

My girl recently had one of her CC companies raise her rate by 15% for no reason at all. She called them up and told them she could not afford the raised rate and that she didn't understand why it had gone up, as she had never been late. The CC company said that since she said she couldn't afford it that they were cloing the account! She had that card for 5-6 years and was never late once! Long story short, she kept calling back and asked to speak to a manager. She explained her situation POLITELY to the manager. She said I have had this account for 6 years, never been late, have a good job, and there is no reason to close this account, after all, she was making the company revenue.

Try calling them back, speak to a manager, be polite, and explain the situation. Maybe offer to sign up for auto pay, which is what I have done not to avoid forgetting a payment.

You can also check out http://www.creditboards.com/forums/ which is where I went to learn about the in's and out's of rebuilding my credit. Great forum with lots of good info.

The CC company refuses to accept any payment. Their claiming that the account is closed and has been sent/sold to a 3rd party collection agency. When I called on Friday, I asked to make a payment to keep it out of collections, their response was that they were unable to accept any type of payment for this account

That's a lie. That's like a CC company saying they can't remove a derogatory mark on your credit report. You need to get beyond the tools that answer the phone calls and go directly to a manager, but you have to be polite or they won't give you the time of day.

Take care,
Rasky

[miahjohn]

Re: Any Credit specialist here?

Nick,
Look up www.clarkhoward.com he has a tv show and is on AM radio. He has a lot of resources on his website and you can email, or call into his show and get answers and advice. people call in the radio show all the time with stories like yours.

[Erik Mejia]

Re: Any Credit specialist here?

Sorry to hear about what you are going through.

There is some good new though. With your payment being late less than 30 days, the lender cannot report it to the credit bureaus. Also, whatever happens with this lender do not close the credit account, as this will lower your credit score instantaneously.

I'll look into your situation and see if I can't gather some more info(Gonna call some buddies.) I'll PM you if I come up with anything.

[Executive Detailing]

Re: Any Credit specialist here?

Check your state laws.
In Ny, the highest interest rate you can be charges is 25%.

Close the account.
If they want to be impossible (not the word I wanted to use, but I have already been censored lol) then I guess they do not want your business, nor the business of anyone else.

So please share the companies name.........lol