I signed up with a debt Consolidation company. One of my credit card company’s says no deal-I must still pay

debt consolidation company

The minimum payment of 2.15% of the outstanding balance. Well of course I cant that’s why I am doing the debt managment. So in other words unless I pay them what they want per month they wont accept payment is what I was told. Do I have any recourse? Because the only other option is to just not pay them.

Passive Income
Categories : debt consolidation



This is the major problem with Consolidation Company, it is never a sure thing….


Many companies refuse to work with credit consolidaiton companies.

If your creditor accepts the offer, most likely they will report “paying through 3rd party”, which also reflects negativly on your credit report, maybe not to your score directly, but when loan officers see that you needed help to pay your “just” obligations, they tend to shy away from the deal.

There is legal recourse to which you can follow about the company not accepting the offer to lower your rate. They have your signed signature agreeing to the terms and conditions when you opened the line of credit.

Good luck.


It is the cc companies decision to participate in a debt management program maybe you should make some calls to some higher ups , write some letters,try a compromise such as suspend charging privleges until cards are paid down or in full.your other option you mentioned will ruin your credit for the next seven years.


Well, most of what omfgis said is true. There are legal ramifications that a creditor can take, such as taking you to court over your debt. However, it is unlikely a credit card company will have their attorney’s pursue a debt (unless it is very large). Also, if it goes to court and you cannot pay it in one lump sum, then the court will break it down into a payment program or “force” you to file bankruptcy, which means they will only get part of the money back anyways, and with no interest being charged.

Did they give you a specific reason why or a general “denial” letter?

Just looking at what you told me, there could be more than one reason they declined your settlement offer. Insufficient delinquency. The bank probably viewed your credit history and deemed any settlement offers as being too low. We, at a very large credit card bank, used to only take off about 10% for every month past due (unless there were extenuating circumstances like death or something we knew we would never be paid unless we took a settlement). As a manager, I would NEVER have accepted a settlement without good reason, terrible payment history, and a check upfront.

I’m sure the debt management company is telling you to keep waiting until they are willing, however, that only makes things worse, since the interest and fees will add on to the balance and your settlement will be even lower. The worst part about that is, when you settle, the amount you are NOT paying can (and does) get reported as income to the IRS in the form of a 1099.

Let me know if you have other questions.


No you don’t…Your credit card carrier is under no obligation whatsoever to accept settlements or any other agreements from debt settlement or negotiating firms. If you can’t pay 2.15% of your balance…that’s not a good sign….I can’t see where a private firm or even CCCS can negotiate a lower payment agreement than that…

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