Amex breaks 4 year old settlement deal, HELP!!
[ Follow Ups ] [ Post Followup ] [ Credit Forum Index ]
Posted by Steve White on February 07, 2002 at 12:11:18:
I need some advice concerning an old AMEX account that was sent off to collection then settled. In late 1996 my my small business failed and I also lost my day job shortly thereafter. That left me with a $700 AMEX bill I couldn't afford to pay. It was sent off to collection and I worked out an arrangement with the agency on a payment plan. About 6 months into the re-payment I was contacted by someone from that agency (Then National Revenue Corp) offering me a 50% settlement and a promise to remove the account from my credit report. Needless to say I borrowed the money from a relative and made the payment. I was supposed to receive a settlement letter in the mail but never did and after a couple months went by I was told the agency didn't work for AMEX anymore. They did, however keep their word. The account was removed from my credit report and I never heard anything back, until June 2001 when I received a letter from Gulf State claiming I owed the remaining 50%. I was hard pressed at the time to come up with any proof outside of cancelled checks since after 3 years of not hearing anything I had discarded most of my records. I managed to come up with a record of payment from the previous agency and sent it off and I never heard another word from them. Just yesterday I was applying for a mortgage when low and behold on my Trans-Union report there's a *brand new* entry from AMEX dated 1/2002. It shows a charge-off debt of $225.06 but nothing else. Amex denies knowledge of any settlement and insists I owe the balance. I have been unable to get any information out of the old agency (NRC) regarding the settlement and AMEX refuses to do anything more than mark my report as Paid Charge Off if I send them the balance. I'm more or less now screwed. My understanding is that having a paid charge-off isn't much better than an unpaid one. I feel that this is a breech of my agreement with NRC and while I honestly have no problem paying the balance (morally speaking, I spent the money so I should pay it) but I don't feel it is unreasonable to expect the remainder of the deal to be honored, especially considering if I pay it today it will stay with me for another 7 years. I don't know what to do, should I just pay it and "take it in the chin" or should I contact a credit counseling agency or lawyer? Help!
Follow Ups:
Post a Followup
|
