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Hi there, Mike with Consumer Recovery Network,
thanks for tuning in to DebtBytes, our YouTube channel.
Today I want to talk about settling directly with
a major creditor, I think the third largest credit card issuer
in the nation at the time I'm recording this,
which is Citibank.
Citibank is much the same as
all of the national banks when it comes to negotiating.
The time frames I talk about it in other videos,
about trying to work directly with Citibank
before they charge off your account.
You cannot call them and settle while you're current,
you have to be behind.
So obviously,
there's these elements to settlement in general, pros and
cons that apply with your credit and things like that.
But assuming that you're already at a place where you
haven't been able to pay Citibank.
Typically the best deals are gonna come
directly from Citibank as you approach six months delinquent.
So somewhere after that 150 day of nonpayment window.
But Citibank has in the past been a bank that I can kinda
count on to send our early offers, just mailed offers.
And sometimes on the phone with their collection efforts too
after you pass 90 days late.
And not just any offer, cuz some banks will send out
a pre-approved offer and say, we'll give you 30% off.
Well, my targets in settling with Citibank are usually
between 30% and 40% and sometimes even 25%.
They, other than some of the other larger banks,
will send out a pre-approved offer, from time to time, for
the optimal amount of savings, again, where I've just targeted.
But right around 90 days,
right after you pass over that 90 day mark.
So pay attention to those because if they do come in,
they're usually as good as they get those offers,
anything around a 25% to 40% mark.
Definitely if you have the opportunity to
take those earlier than 150, 180 days, do it.
Citibank is a issuer of branded cards,
they do a lot of servicing for say Home Depot or your Shell
gas station card, you're still dealing with Citibank.
So, they are somebody that might be involved in your life
more than, say your local credit union who
doesn't have those branded types of cards.
Sometimes, because of the branding and
sometimes with the way that they kinda treat those accounts in
a silo, compartmentalize them, your targets for
settlement will change.
So we have all the comments below available for
you to interact with me and get feedback and
others about particular targets on your Citibank account that
you're trying to negotiate and settle.
And it's gonna change maybe with some of the information that you
provide on who you actually owe.
Citibank, when you're unable to settle with them directly, and
you have to deal with a debt collector.
We just came through a spat of a couple of years where
major credit card issuers were not selling their debts off to
debt buyers.
Citibank continued to sell some of their accounts,
not all of them.
But particularly like their Sears account, they were still
selling, that's another branded Citi servicing card.
So you are definitely at the time you're watching this video,
or at least at the time I'm recording it, potentially
gonna be dealing with debt buyers after they charge off
your account, that's usually at 180 days of nonpayment.
So early out referral to collection agencies all
the norm, totally something that you can expect from Citibank.
Or, that they sold your account off to a debt collector.
Years and years ago, Citi used to be the most aggressive debt
collector to sue through the courts.
They didn't sell off the rights to a debt buyer who would sue,
they would actually sue themselves.
That hasn't been the case for
several years now, it's very rare to see that happen.
So, Citibank proper, placing your account with an attorney,
now look, these things ebb and flow to the collection process.
Banks do change and adjust their policies and
their different recovery goals.
And usually they recover the best return
on unpaid debts through the courts.
So Citi could change that in the future.
But again, post in the comments below about any concerns that
you have negotiating with your Citibank account.
We have an entire series about negotiating debt
with your original creditor on our YouTube channel, so
make sure and tune into that.
I also have a page up, a very active
page with ongoing discussion on the consumerrecoverynetwork.com
website where you can participate and
learn more from others besides me.
Thanks for tuning in, see you on the next video
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