![]() If Citi has yanked the offer to set you up on the 60 month repayment plan, they likely would accept a similar plan if it was submitted to them through a nonprofit consumer credit counseling agency. Do you have other credit card debts you are struggling with? If so, will agreeing to a long term balance liquidation plan with Citibank (hardship repayment), help you manage your other credit card debts? Some prepping can help you better know why Citibank might pull an earlier offer, and even when to take the most recent approved deal to settle.įirst, you mention that even the minimum 500.00 Citi bank is asking for is not within your budget, but were you to come up with it, would they offer the 5 year balance liquidation plan again? If they do, can you come up with the roughly 283.33 every month like clock work for the next 60 months? If you are skeptical that you can meet the lower payment, I don’t recommend enrolling in the plan. There are some key things I like to see people put in play prior to reaching the stage of pre charge off collection that you are in. What can be seen real time on your credit report, and whether you are paying other credit cards, but not paying Citi.If you send some canned letter you pulled off a website, Citibank may have flagged your account for legal review.It may have something to do with account activity leading up to your default in payment (recent cash advances, balance transfers, increased or large transactions just prior to default).There are Reasons Citi Will Fast Track Debt Collection Efforts What you further outlined about Citibank withdrawing the hardship plan offer and that they are not willing to discuss debt settlement, gives me the impression that your account may well be set for fast track referral to an attorney debt collector. Having said that, there are a number of accounts that are selected for immediate legal collection action. The detail you provided supports exactly that. Here is a quick read about what banks (not just Citi), do at the point of credit card debt charge off: Assign, Sue, or Sell.Ĭreditors like Citi bank use the reference to pre-litigation as an effective tool to get you to agree to make a payment. Citibank may send your account directly to an attorney debt collector they have an established relationship with in your state for collection and authorization to sue.These debt buyers use debt collection agencies and attorney debt collectors too. Sell your debt to a debt buyer like Unifund, Porfolio Recovery Associates, LVNV, Midland Finding etc.Assign your debt out to a debt collection agency who will call and write to you on behalf of Citibank in order to collect. ![]() When the account charges off citibank will do one of three things: Your account is a couple of weeks from charge off. Citibank, Charged Off Credit Card Debt, and the Risk of a Collection Lawsuit If you wanted to get Citi to accept a payment plan instead, even though they pulled the option off the table, you can still get on a payment plan. If your goal is settling your citibank credit card, you may end up doing that with a debt collector Citi sends the account to, even an attorney debt collection firm. The reference to pre-litigation at this stage of default with a citi bank credit card or personal loan can mean nothing of consequence, or that your account has been, or soon will be, flagged for placement with an attorney who may be authorized to sue you in their effort to collect.
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