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Today, I realized that I made a stupid mistake of not paying my 0% BT Citi card on time. I saw an option of either pay the minimum or make payment arrangement when I login to my account. First, I picked pay minimum, and it asked me a bunch of question: when will I be able to make payment? Why I didn't pay on time? Where am I gonna get the money? I didn't get a chance to finish, but I tried to make payment arrangement option. It asked me the same questions. I submitted the answers, and Citi offered me the following settlement term:
*Large monthly payment times 3 months
*Total payment is close to $1,000 less than my $20k current balance
*0% APR until paid in full
*City may file 1099c to IRS for debt discharge
*While this arrangement is in effect, no interest, late fees or over the credit line fees will be applied to my account. All other terms of my account agreement will remain in effect.
*Upon completion or termination of the arrangement, the terms on my account will be returned to the current Purchase APR - 6.99%.

I have the money to pay the whole balance off as it is sitting on a high yield account right now. What's possible adverse action if I accept this settlement? $1,000 debt discharge would be nice if there's no adverse action. I do understand that debt discharge probably equals to income, which means tax to the IRS. This card has one of the highest limit among my other CC, but it's not the oldest. However, I do have 3 CC from Citi. I don't plan to buy anything big on credit for at least another 7 months.

I've heard stories about CC companies settling for less after they haven't received any payment for months. But I'm only 2 weeks late and they are already offering me this? This is crazy.

Edit: I'm not sure why they pick 3 months. I think it coincides with the end of 0% BT offer.

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So you paid in full and Citi dropped late fee and finance charge, and no negative reporting to credit bureau?

Did you get... (more)

Shel (Dec. 10, 2009 @ 1:04p) |

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FootInMouth (Dec. 10, 2009 @ 1:36p) |

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FootInMouth (Dec. 10, 2009 @ 1:37p) |

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Your CB may reflect the comment- Debt settled for less than full. If you can get Citi to have the card report as paid in full this would be awesome.

very interesting offer --- there is nothing preventing them from dropping your credit line after this

I wouldn't deal with the devil unless I was sure of the result --- smartest thing may be to just pay it off

I'm sure Citibank will value your business for years to come.

Good luck trying to get a new card or a mortgage with them.

Read the new thread about FICO scoring.

As long as you are not 30 days late, no negative reporting should occur however I would expect citi to close at least that card if not all of them if you accept. Is citi relationship worth more than 1k?

Pay your credit card deadbeat.

No, this is actually what may be the NEW WAY for NON deadbeats to play cc gaming...playing the 1-30 day late period where no negative information is reported to your credit, then getting JUICY offers like this...

the far more appealing one than the $1000 off is the 0% until paid in full! No settlement or tax issues would occur, its basically earning a 0% for life offer through force of the consumer. Thats the option I would take.

You made the debt pay it. Do you really think they are going to let you have a credit card with them if they discharge this debt? Do you really think it won't hurt your credit. Of course it will.

OP, is this a Citi proper card or is it an Associated card?

cp102 said: You made the debt pay it. Do you really think they are going to let you have a credit card with them if they discharge this debt? Do you really think it won't hurt your credit. Of course it will.

The banks made debts and took deals that we are paying so why not us. It looks to me like this thread was about taking the deal paying it off. now this being citi they haven't done anything crazy to us on our cards but if it was the losers Chase I would do whatever i could get away with to mess with them that didn't effect my CR.

I think I wouldn't trust Citi on this deal as it will impact your credit (even if they would claim otherwise). Economist Willem Buiter wrote of Citigroup: “a conglomeration of worst-practice from across the financial spectrum” However, if you have a mortgage, car loan, etc. and you have other banking relationships then maybe the $1K benefit is worth it.

This is very interesting. I'd call them and ask to clarify details. If the CSR folks have access to the offer information, then tell them you have one more condition: that the account is reported to credit bureaus as paid in full if you follow the other terms. If they are willing and able to add that to the offer, tell them to send it in writing and you'll take it. Without that, I'm not sure it is worth $1k (less possible taxes if reported).

I think 3 months is just to give a suffering consumer like you in these troubled economic times a little time to scrape together the funds to pay off some of your crushing debt overload. Just a coincidence if it matches your o% period.

SUCKISSTAPLES said: No, this is actually what may be the NEW WAY for NON deadbeats to play cc gaming...playing the 1-30 day late period where no negative information is reported to your credit, then getting JUICY offers like this...

the far more appealing one than the $1000 off is the 0% until paid in full! No settlement or tax issues would occur, its basically earning a 0% for life offer through force of the consumer. Thats the option I would take.


I think you missed the part where OP said it's 0% until paid in full in 3 months (3 large payments of $6xxx). Citi basically wants their money now. If OP is putting the money to good use somehow, the $1000 probably isn't worth it. It is very interesting, maybe the offer will keep getting better.

Make them a counter offer of waiving the late fees if you pay in full. You'll save yourself 39 bucks and no credit hit.

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BrlDsguise said: Pay your credit card deadbeat.

Read his post , he's not a deadbeat he was late on a payment They made an offer for him to pay it off.

He wants to know the consaquences if he takes it.

Call and tell them you'd rather PIF, but can't squeeze out those huge payments. How about 0% for 60 months?

citi nor should any bank offer anyone a break on their debt.
pay up all you deadbeats

kaiotes said: citi nor should any bank offer anyone a break on their debt.
pay up all you deadbeats


But taxpayers should offer citi or any bank a break on their debt.

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Superdude99 said: Make them a counter offer of waiving the late fees if you pay in full. You'll save yourself 39 bucks and no credit hit.

This is the option that I took. I tried to get them accept the 3 monthly payment settlement option without reporting to credit bureau and no go. I hang up and tried with another CSR and no go. I even tried to make 0% APR payment arrangement where the result is full payment, but at longer term period, no go.

So I asked late payment waiver and removal of any finance charge due to late payment. He agreed as long I pay over the phone (at no charge). He did not say that I needed to pay on full, but I decided to pay in full. I think I'm done playing 0% APR game.... for a while at least.

And no, I'm no deadbeat. Although that $1,000 is tempting. I did not have intention to not pay my CC. I checked off the payment on my CC checklist sheet, marking that I paid. For some reason, I thought I already sent the payment.

I think I'm done playing 0% APR game.... for a while at least.

Yeah, with interest rates what they are and no zero fee options, it is hard to see it being worthwhile.

I'm still making 5% on my 0% cc money. Check the reward checking thread.

I will never understand how some people are so against the consumer getting a good deal. What's so bad about that?

codename47 said: I will never understand how some people are so against the consumer getting a good deal. What's so bad about that?

Because it often comes at the expense of other consumers; someone has to subsidize the loss.

mewannaxbox said: codename47 said: I will never understand how some people are so against the consumer getting a good deal. What's so bad about that?

Because it often comes at the expense of other consumers; someone has to subsidize the loss.


Or because someone else got a good deal that they did not. Haters abound.

mewannaxbox said: Your CB may reflect the comment- Debt settled for less than full. If you can get Citi to have the card report as paid in full this would be awesome.

I agree - your biggest risk is impact to your score. If they report something on your credit burea file, it will be very hard to erase.

The reality is that many people subsidize others for most products. The person who does not bother to spend 5-10 minutes doing a simple web search and buys the camera, Ipod, tv in the closest store probably pays for many of the discounts others receive. There are many reasons for this, stupid people, lazy people, people who don't care, computer illiterates, people for whom spending extra time to save $20-200 is not worth it.

The credit score (which has been religion to a lot of us)... is a lie. Am I considering selling mine if profitable? Hell yes.

Do I have moral qualms about it? Usually, yes -I stand by my agreements and contracts... But to any bank that fear mongered and lobbied its way into stealing 700 billion - 1.3 -?? trillion of taxpayer money? A resounding HELL NO. WTG, OP...

mlayu said: So I asked late payment waiver and removal of any finance charge due to late payment. He agreed as long I pay over the phone (at no charge). He did not say that I needed to pay on full, but I decided to pay in full. I think I'm done playing 0% APR game.... for a while at least.


So you paid in full and Citi dropped late fee and finance charge, and no negative reporting to credit bureau?

Did you get any written confirmation from Citi? I had very bad experience with Citi that they agreed something over the phone (regarding a promotional credit), but turned around a few days later refusing to credit my account.

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