Chase debt settlement and forgiveness program options
Chase to offers settlement, repayment and debt forgiveness programs to credit card customers who are unable to keep up with their balances. The bank uses a range of approaches that lower interest rates, waive fees, reduce monthly payments, or settle past-due accounts for less than the total owed. These options change based on account status, the borrower’s finances, and whether the debt is still with Chase or has been sent to collections. Learn more below on options for settling past due Chase credit cards balances as well as the contact information.
The standard goal of Chase’s settlement programs is to resolve delinquent accounts before they progress to charge-off. When a customer explains a documented financial hardship, such as an unexpected loss/reduction of income or medical emergency, Chase may lower interest rates, extend repayment terms, or consider a settlement that eliminates a large share of the balance. The lender also uses structured payment plans when a lump-sum settlement is not possible. The examples below reflect real experiences reported to needhelppayingbills.com readers.
How customers are saving money through Chase debt settlement
One customer received a settlement offer after missing several months of payments on roughly nineteen thousand dollars in credit card debt. Chase agreed to accept about six thousand nine hundred dollars, which equaled thirty-five percent of the total. The remainder of the balance and accumulated fees, a total of $6,900, were forgiven. The settlement was structured as a lump-sum payment.
Chase sometimes pairs a settlement with a short repayment schedule. Another customer received a thirty-five percent settlement that was divided into four equal monthly payments. Each payment equaled roughly nine percent of the original balance and the remaining debt was forgiven after the fourth installment cleared.
A third household settled at thirty-five percent of the principal balance, not including fees that built up after the account went delinquent. Since Chase waived all interest and penalty charges, the effective savings were greater than the headline percentage. This type of settlement remains common when a customer shows a long-term hardship such as medical issues or loss of income.
Not all settlement offers start low. In one case, Chase initially offered a sixty percent settlement on a past-due account. The cardholder declined and continued calling supervisors, asking about internal hardship programs and sending follow-up letters. Over several weeks, Chase improved the offer to about forty-five percent. The customer accepted that amount and cleared the balance. This reflects how persistence and documentation can influence settlement terms.
A different borrower with more than seventeen thousand dollars in delinquent debt first received an interest-rate reduction and lower minimum payment. When the customer could not keep up with even the reduced amount, the account fell further behind. After about ninety days, Chase offered a thirty percent settlement payable in one transaction. The customer accepted and the rest of the balance was forgiven.
Some households try to settle multiple debts from different lenders at once. One person shared that Bank of America settled fifty thousand dollars of credit card debt for twenty percent in a single payment. Chase settled fifteen thousand dollars for thirty percent over four payments. Citi settled roughly nine thousand dollars for fifty-five percent over twelve months. While each bank uses different guidelines, Chase generally settles between thirty and forty-five percent when the account is significantly delinquent but not yet sold to an outside collector.
Reddit is often a place for examples too. There you can can find examples of people settling a $27,000 Chase credit card debt for $7,198. Or find examples like a consumer who owed about $15,000 on a Chase card. During negotiations for a “severely delinquent” account, Chase reportedly offered to settle for $6,500. While there is not one dedicated Reddit page focused on Chase, a good URL to use is https://www.reddit.com/r/Debt/.
Settlements do often vary between Chase customers, and there is a reason for this. Settlement percentages differ because Chase evaluates income, employment, delinquency stage, prior payment history, and the age of the debt. A customer who is ninety to one hundred twenty days behind often receives lower offers than someone only thirty days past due. Accounts approaching charge-off tend to receive more aggressive settlement terms. Documented hardship such as medical expenses, unemployment, disability, or natural-disaster impact also weighs heavily in Chase’s decision and is beneficial for when settling debt.
- Chase also adjusts settlement terms, or how much is forgiven, based on whether the customer can pay in a lump sum. Lower percentages usually require immediate payment. If the cardholder needs a payment plan of several months, the total settlement amount may increase slightly.
Chase offers other assistance programs as well to customers who are faced with a hardship. The relief comes in many forms. Click here to learn more on credit card hardship programs from Chase.
How to seek debt settlement from Chase
There are a few different options, but it is important not to wait. Consumers may negotiate directly with Chase rather than using a debt-settlement company. Calling the telephone number printed on the back of the credit card remains the most reliable method to get the process started. Chase’s customer-service representatives screen for hardship eligibility, which can include settlement, and transfer accounts to specialists when settlement or repayment arrangements are possible. Or they look into other consumer debt relief programs. Many cardholders also request supervisors when the first offer is not workable.
- If you are considering negotiating a settlement with Chase, you should first review your account status. If you have missed several payments and the account is charged-off or in early collections, that is the point when lenders tend to provide the largest discounts. Be ready to propose a lump-sum amount you can afford. Ask for a “paid-in-full for less than full balance” letter from Chase before sending payment. If Chase agrees to terms, send payment only after official confirmation. Understand that the account will likely be closed under “settled” status and your credit report will reflect that — potentially damaging your score for a number of years.
- People who choose to use a debt-settlement company should ensure that the company is compliant with the Federal Trade Commission’s Telemarketing Sales Rule, which bans upfront fees. A legitimate agency cannot charge the client until a settlement is reached and at least one payment has been made. Consumers should compare settlement-company fees to the savings they might achieve by contacting Chase themselves, as direct negotiation often yields equal or better results without additional costs.
Note it is imperative to act before collections becomes involved. If an account is already charged off by Chase and transferred to an outside collector, Chase’s direct settlement window usually closes. However, the debt “buyer”/”collection company” may still negotiate, and some consumers achieve comparable or even lower settlement percentages with collection agencies. Status information for charged-off Chase accounts is generally mailed to the customer, and collectors must provide validation letters that outline the balance and the agency’s contact details.
Contact information
As noted, you can either decide to work with a debt settlement company or contact Chase directly. If you decide to contact them, the best number to use is the tool free number on your card. Additional information on Chase hardship options can be reviewed at https://www.chase.com/personal/credit-cards/basics/hardship-program. Or the main Chase credit card customer service number is 1 (800) 432-3117.
Related Content From Needhelppayingbills.com
|
Need help navigating programs?