Legal Question in Credit and Debt Law in Iowa

Collection problem

I have had a credit card payment arrangement for some time with Citicard. When my last arrangment was made I guess it was for 6 months and the time ran out in January.I didn't know that and thought a Jan. payment was going to be deducted. When my bill arrived in Jan. it stated contact us for special payments arrangments. Before I could do that they turned it over to GC Services for collections.Citicard also claims they contacted me for payment in January but they never did. I paid GC services $500 in January, $600 in march. They were demanding full payment of the $4200 but first settled for this amount and then pressuring me into making a post dated check for them. Which I cancelled because I didn't have the money. I told them I could make monthly payments but they refused. I asked for there address so I could send them a certified letter and they refused to give me thier address. I did call the Attorney General office and put in a complaint on there tactics of refusing their address. They also refuse to send me a letter stating this is the amount it will take to clear up this account. Should I still continue to send payments to Citicard or what. We owe the money and are more then willing to pay it but don't know how..


Asked on 4/29/04, 8:34 pm

1 Answer from Attorneys
Eric Southward Southward & Haggard

Re: Collection problem

You have a lot of specific questions that you should really be addressed with an attorney, but generally here is what you can do. IN WRITING (yes, talk to them on the phone, but ALWAYS follow up in writing) tell them you dispute the debt and that under the FDCPA you are requesting verification of the debt. The address I have for them is GC Services

6330 Gulfton

Houston, TX 77081

They have to give you the address. You want to stick it to them, record your conversations. Citicard may not deal with you anymore, but keep trying to deal with them to see if they will accept a settlement offer. Bear in mind if you settle for less than full balance, the IRS treats it as earned income and it is still a neagative entry on your credit. But it sounds like your credit is already dinged.

However, also keep in mind that collection agencies make money by collecting it, so sometimes they are the ones most likely to make settlement deals.

You don't have much causes of actions against youor credit. You're in default, they don't have to accept any settlement from you nor any repayment arragements. You are at their mercy. However, GC is bound under the FDCPA so they have to be careful. Good luck. Again, you may want o hire an attorney to negotiate for you. Even spending $250 to settle an acct may be worth it. Call us if you need assistance. (317) 916-2300

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Answered on 4/29/04, 8:50 pm


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