I got in over my head with credit card debt, Citi Cards being one of them. I went through health problems, a very unexpected divorce, time missed from work (unpaid) and loss of income through husband leaving.
I wrote to Citi Cards, along with all my other creditors. Explained that my health and my financial situation were not good; and that I could not pay my debts at this time.
Citi Cards surprised me and sent a letter offering a "settlement" of my credit card debt with them. The letter claimed that they would accept about one third of what I actually owed them. They further stated that I did not have to pay the amount in a lump sum, but could make monthly installment payments.
The one stipulation in their letter was that I MUST contact them by telephone before November 8, 2007. We would then set up a montly payment plan for me. I called them on October 23, 2007.
The Customer Service Rep. immediately said to me, "We never sent you any such letter." I responded, "I have the letter in my hand right now. I will be happy to send you a copy." She repeated, "We never sent you ANY such letter." She then went on to say, "We want our money; we will take you to Court, and you might lose your house." They did take me to court - and they won. I have to pay Citi Cards three times the amount of the "Settlement Offer" they sent to me. I sent a copy of their letter to Court, to no avail. I could not afford an attorney - while Citi Cards retained a high-priced law firm.
I have reported their actions to the Federal Trade Commission. They (Citi Cards) sent paperwork through the U.S. mail and fraudulently attempted to get me to pay my bill by lying to me. I hope that every person who is treated as I was rises up and fights. I will never give up until these big corporations are held to the same laws that other citizens are.
Please do not allow them to get away with going after "the little guy." I was pretty much called a liar and threatened with the loss of my home. Every letter I sent to them trying to ask for time, went completely ignored. They prefer to get you on the telephone where they can record your call - and try to force you to let them take payments electronically from your checking account. I hope if anyone else ever gets a "Settlement Offer" from Citi Cards, you do not go through what I did.
Product or Service Mentioned: Citicards Credit Card.