Where do I go from here?
I fell behind on a credit card through HSBC and have been turned over for collection I had a loss of income and I was 24 hours late with my payment so my rate went to the default of 30.99% and the minimum payment doubled I have paid $250.00 per month every month even though that does not cover the interest that is accruing. I am not sure if I have been sold or if this collector is working on behalf of the bank.
The debt collector called me and left a message after my first conversation with her that the creditor is "reaching a max out on settlements" and I do not what my unwillingness to return her call to be interpreted as a refusal to pay. I returned her call and she offered me a settlement on the debt which is now at $13,760.00 including accrued interest for $6,700.00 but I have to pay now. I do not have the means to pay now she said she could not stop or lower the interest rate or take installments.
I received another message from her today (it’s been a week since my last contact) she said she received an email from the creditor stating that “I had been redlined”. I’m not sure what that means but she needs a return call right away. I have figured out what I can pay in a lump sum and I will have to make installments for the rest.
Can they stop the interest accrual and the late fee and over the limit fees? What does red lined mean? Do they have max outs on settlements or is this just a scare tactic? I’ve never been through anything like this and I’m mortified. This has impacted my career as well as my credit score I feel like I’m fighting a losing battle. By the way I reside in Virginia.