Settlement of Amex Clear Credit Card Debt

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kwrxxx
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Settlement of Amex Clear Credit Card Debt

Postby kwrxxx » Tue Dec 31, 2013 8:47 pm

Seven years ago I opened a Amex Clear credit card account. Recently I had severe health problems that disabled me from work. I receive a insurance disability check from my insurance plan and work out of my home part time. Last year I stopped all payments with Amex and the account was sent to collection agencies. When contacted I just spelled it out to the collections agency my health problems and only having a small disability income. My account went to two collection agencies and each time the agencies referred my account back to AMEX corporate. My account was then forwarded to Amex global collections and the settlement offers started coming in. I would call them and make a counter offer, but they wouldn't budge. After six months they finally sent me a 50% settlement offer. I was finally able to have a settlement of 35% with about $50 monthly payments for the next two years. I never had very high limits on any of my credit cards so the debt was only $3000. Amex has also suspended my interest rate as long as my payments are always on time.

I just thought I would share my success here so others can learn from my experience. I do not ever using a so-called debt settlement company.

Also if you have a credit card do not ever have a very high limit on those cards. Try to live within your means. :D You never know what tomorrow will bring. My health problems came out of nowhere after a healthy active life.


samhradh
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Postby samhradh » Wed Jan 01, 2014 8:06 pm

Not sure I would call burning AmEx a success but YMMV. Good on AmEx for working with you, though. Sorry to hear about your medical problems.
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).

kwrxxx
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Postby kwrxxx » Fri Jan 03, 2014 1:13 am

http://www.amazon.com/You-Can-Negotiate-Anything-Negotiator/dp/0553281097/ref=sr_1_1

Well I could have just declared bankruptcy, but I have settled with all my creditors. The credit card companies build in the losses in the Interest rate of all unsecured credit that is why the interest rate is so high. 60% of all bankruptcies are due to medical bills due to serious illness or disease.
Iif I just charged up all my credit cards, which I didn't do, then filed for bankruptcy that would be burning people.
Banks could eliminate all risks by requiring collateral for all credit cards, but the way system is set up now they make a handsome profit on credit cards. I even sold assets to pay down some of my medical bills and credit accounts.

MemberSince99
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Postby MemberSince99 » Fri Jan 03, 2014 6:42 am

Yeah I would avoid judgement. I mean any of us could lose our livelihood at any time due to no fault of our own or have a heart attack, or get maimed in an accident, etc. At that point, your credit card is probably not the most important issue you have to deal with, even if it's Amex.


I've found in life all too soon when I sit and judge someone else and sit smugly looking at what I've done, that's when I get a big kick in the rear to bring me back down to reality. Been there and done that enough to have mostly learned the lesson. Good for you to making the effort to work with them and get it paid off.

DoingHomework
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Postby DoingHomework » Fri Jan 03, 2014 1:08 pm

kwrxxx wrote:Well I could have just declared bankruptcy, but I have settled with all my creditors. The credit card companies build in the losses in the Interest rate of all unsecured credit that is why the interest rate is so high.


That's not an excuse. That just means that the rest of us pay higher rates and fees to cover the losses.

kwrxxx wrote:60% of all bankruptcies are due to medical bills due to serious illness or disease.


MemberSince99 wrote:... any of us could lose our livelihood at any time due to no fault of our own or have a heart attack, or get maimed in an accident, etc.


True. And that is a terrible situation. But that is why everyone should carry health insurance. And don't give me the old - "but I lost my job and my insurance" because we've had a law called COBRA for nearly 30 years that allows you to keep your insurance for 18 months. And you do not pay any more than your employer was already paying. The problem is that most people just don't want to pay for insurance because they don't think they will need it. Then when they get sick they don't want to pay for the care. They expect the rest of us to pay for their care through higher rates, losses, and so forth.

That's one of the great things about Obamacare. Even if you don't like it, in a few years when you hear stories like this there will be no excuse. Everyone must carry insurance by law. The deadbeats who don't do it and then get sick will have far less sympathy in a few years.

I do think that the fact that so many bankruptcies are caused by health problems that can happen to everyone. But in most cases it's not the health problem that is really at fault. It is the lack of insurance. And the vast majority of people could have bought insurance and simply chose not to.

MemberSince99
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Postby MemberSince99 » Fri Jan 03, 2014 2:34 pm

Dude, if you are in good enough financial shape that you can afford to pay the full cost of your insurance on your own, especially with Owebamacare in force, then congratulations to you. Most people can't.


And don't even start with the "sure they can they don't need to pay the mortgage or eat dammit! those are wants not NEEDS like insurance!!!!"


You sound like one of those liberals who feels like he's in a position to judge what everyone else can and should pay. That's what got us where we are to start with, and from what I'm reading a lot of people are losing their insurance and have massively higher premiums with huge deductibles, courtesy of a law that claimed to fix these problems and calls itself "Affordable". What an irony.


So I would still say, you should withhold judgement on things you really don't know.

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otter
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Postby otter » Fri Jan 03, 2014 4:15 pm

DoingHomework wrote:That's one of the great things about Obamacare. Even if you don't like it, in a few years when you hear stories like this there will be no excuse. Everyone must carry insurance by law. The deadbeats who don't do it and then get sick will have far less sympathy in a few years.


Did someone just use "great" and "Obamacare" in the same sentence? Besides, the OP never said he/she didn't have medical insurance. Have you ever been sick? I don't mean flu sick, I mean disabled sick... you can't work which means you don't have income coming in. Eventually, you get let go from your job. The OP could have had insurance, but that only covers medical expenses and not even all of the medical expenses are covered. There are still lots of other bills to pay. I think you're drawing conclusions which aren't necessarily there.

MemberSince99 wrote:and from what I'm reading a lot of people are losing their insurance and have massively higher premiums with huge deductibles, courtesy of a law that claimed to fix these problems and calls itself "Affordable". What an irony.

I'm paying more than twice what I paid pre-Obamacare.
In my Wallet:
  • Amex PRG NPSL[3-14, bd 91]
  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
  • GM BuyPower WEMC $5000[9-14]
  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450

MemberSince99
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Postby MemberSince99 » Fri Jan 03, 2014 6:15 pm

Otter you are exactly right - just having insurance does NOT solve all the problems. Not even close. First there is the massive premium, then the astronomical deductible. On top of that it's only a certain percent, 90% or maybe only 80%, if you are in-network., and if you aren't, it's maybe 50%. On top of that, then there is "usual and customary charges" which only the insurance company defines what these are and they naturally don't share them with the public, but it's license to decide what they feel the doctor should charge and they will pay only that. If they even decide to pay - they may decline to pay for a lot of reasons. People have died trying to get insurance companies to pay, a few years back the boss told us she just read how our insurance company then let a little girl die by refusing to pay for her to have an operation, and that was OUR company, how nice. So if the beancounters decide it's too expensive, you can croak so they can meet Wall Street's quarterly expectations.


Anyone who thinks just having an insurance plan fixes the mess has no grasp of reality for most people. Kind of like the people who foisted this plan on the public.


These days, I'd be happy to have Barry just go golfing all the time, and not "fix" anything further. Everything he's "fixed" so far has ended up even worse off. The Owebamas go to Hawaii? That's a trip I'm THANKFUL to pay for, as he won't (hopefully) be screwing up more while he's there.

DoingHomework
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Postby DoingHomework » Sat Jan 04, 2014 9:07 am

MemberSince99 wrote:Dude, if you are in good enough financial shape that you can afford to pay the full cost of your insurance on your own, especially with Owebamacare in force, then congratulations to you. Most people can't...

You sound like one of those liberals who feels like he's in a position to judge what everyone else can and should pay.


Part of being a responsible grown-up is having a backup plan for contingencies like losing your job, getting sick or disabled, and so forth. Medical insurance covers most expenses, though understandably not all. Everyone should have savings to cover deductibles and copays. Short and long term disability insurance is available to cover most disabilities. LTD is actually rather cheap because we have a government program (a part of SS) that covers everyone. STD is expensive but unnecessary after on saves up an emergency fund to cover 6 months expenses. Unemployment insurance is also mandated in every state. Employers pay into that.

And you've got it backwards. Conservatives are the ones who want to cut off all the safety net programs and then judge people for being poor.

The reality is that many people, myself included, have always thought about these things and planned accordingly. I have lots of money now and have lots of toys. But when I was younger and had a great job I could not afford new cars, cable TV, and many other toys. I did however pay for health insurance including forking out a huge amount per month at one point when I lost my insurance because I changed jobs. I have never had to rely on any government programs but they were also there if things got really bad.

It's not rocket science. It just takes some planning ahead and saving when times are good.

I am neither liberal nor conservative. I agree with the conservatives who think we need to cut government spending and eliminate a lot of safety net programs that are abused. Yet I agree with liberals who think we need those programs for the truly destitute. My solution would be that the government programs exist but people must work for their handouts. I think you'd find that is a fairly far right view. I am not offended at being called a liberal but I do not think it is even close to accurate.

MemberSince99
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Postby MemberSince99 » Sat Jan 04, 2014 9:44 am

Again, I have no idea what you earn, though some people on here by their spend clearly are deep into 6 figures possibly approaching 7. (You HAVE to be if you are dropping 200k a year on your Amex card alone, unless you have a trust fund/won the lottery etc).


Me I make a 5 figure income, which puts me in the highest tax bracket at 33%. I have no write offs so they keep most of what they take. What I make may look pretty good compared to someone who works at McDonald's, and it is, however, after all the taxes, it just isn't as great as it may look on paper. Combine that with a steadily rising tax burden and cost of living and stagnant wages, and you have a real world income that is declining.


I know, guys like you would say "it's yer own damn fault you need to work your tail off to get ahead in life and you obviously aren't doing that so you DESERVE to starve you loser!!!!!!!" Well I do work hard at my job. I'm not the sort who is going to become executive material, and as clueless and nuts as a lot of them are, I don't even WANT to be. I would not fit. They know it and I know it. I could work a second job. I thought of that. But with taxes it just about wouldn't be worth it - I'm already taxed like hell, and that would only increase them to the point it just isn't worth it.


Anyway long post as usual, but you are in no position to sit around judging what other people "should" afford. You have no idea what their situation is.


And Owebamacare is just another shaft up my rear end, because I work for a living and don't sit around looking for handouts. If I was a deadbeat, I'm sure I'd LOVE his plan. But I'm one of the people who gets to pay for all the "free" healthcare. So I'm not a fan. If you benefit from it, more power to you, but as far as I'm concerned it's just another reason (of many) I'm glad I did not vote for the communist in chief.


And I myself used to consider myself liberal, until Owebama got in. I always kind of thought I was in the middle, and still do, but I'm not a conservative nor a liberal just a realist who would like to see an actual working system that serves the people in this country and not the people serving the government like today.


But I would still say you aren't in a position to judge what others can and should afford. Until you become God, might be a good idea to suspend those "I know best for others" type judgements. It does seem like the modern liberal attitude (and yes I know conservatives are mean spirited jackasses who are strictly out for the rich I agree, their cynicism when they say how vile the minimum wage is because it "hurts" poor people just makes me want to barf, no one is stupid enough to believe they care about the poor, they care about their own pocketbooks, greed being virtue and all...)



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