My credit card is 75 days past due and my bank is threatening to close my account.?

My bank has been calling me about my past due credit card and are telling me that if I don't pay them some ridiculous amount, that they're going to close my account. Can they do this? It's past due 75 days, and I'm planning on paying the past due balance, I just haven't had the means to do it until now. Wouldn't they rather keep it open and collect the interest? How long before they send it to collections?
My credit card is 75 days past due and my bank is threatening to close my account.?
They have a right to close it,


They also have a right to increase your interest rate up to if not more then 25%.





Even if you do pay it to current the interest rate will still be increased.
Reply:Yes, they have every right to close your account. They also will continue to charge you late fees and interest increased to the default rate.





How long before you are turned over to collection will vary from one credit card to another. Some of the larger credit card banks have their own in-house collectors.





Depending on what your account balance is, they may very well take you to court.
Reply:yes there can close your account and turn you over to the credit beaural, and then your have to pay them , why don't you go to your bank and ask them if you can pay it off went you get paid and maybe waver some of your over drafts , i just went threw this with my bank ,I'm talking about the waver which helped me get caught up good -luck
Reply:Of course they can do it. The "ridiculous amount" is probably what you owe. Just because they close it doesn't mean the balance stops accumulating interest - it continues to do so. It just means you can't charge anymore.
Reply:Yes they can close your account. If you want you can pay them off if you have the money........or if this is the only credit card you have delinquent, wait till five months past due. They will be very apt to settle for probably about 1/2 of what you owe and accept it as payment in full. If you have alot of credit cards past due, they may go down lower. They sell debt now, so most likely every six months they will sell your account to another collection agency, you'll be hearing from diffrnt agencies for years. Negotiate, between 4-5 months, or pay now. Settlement 90% as good as paid in full. Maybe 95%, the credit industry, credit cards are open to settlements rather than charge off a debt, and reporting as delinquent is not usually till the 3rd month delinquent.


Most people don't know about settlements, and a whole new industry has arisen, mostly shady, some are ok run by attorneys, but a 3rd party managing your debt, or making settlements for you is unnessary, you can negotiate settlements yourself. Remember, as long as the debt is active and not charged off it is an asset on their balance sheet, if charged off the balance comes out of accounts receiveable, the asset side of a balance sheet. Settlements are a just and legal means of reducing debt. Cruise this site, you'll find people complaining about huge interest rates (on bank, delinquent intrest rates above 35%. not uncommon) , plus a monthly late charge. A $4,000 balance can go to $6,000 in 6 months and be settled for $2,100 just prior to write off and being sold to a collection service. Make sure you get the settlement in writing beforehand, that it is acceptable, remit, get a letter that it is paid in full, and make sure they reported it - will read at credit bureau S.I.F. (settled in full) balance 0. If it has not been reported (banks and creditors usually do report) send the letter of settlement to the three major credit bureaus yourself, Trans-Union, Equifax, and Experian. Debts are even more easily settled while at collection agencies, they are buying the debt initiatlly at .25 cents on the dollar, then if they can't collect, will sell it to someone else, for .20 cents on the dollar, on and on for years. If you settle w/a collection agency they usually won't report it to cr. bureaus, you'll have to provide the letter yourself. You are subject to tax on settlements, minimal, depending on your tax situation, married, filing single, or whatever. Settlements are a just and legal means to offsetting unjust interest, and late fees.
Reply:They can take your money. Just remember it isn't your bank it is the card company. They will take your money and in some cases they will take your account negative. That is when your bank comes in and starts collecting fees on you being overdrawn. Best advice is to make the minium payment on it till you get enough money to pay off the whole thing. Don't spend money you don't have.
Reply:Actually it already has been closed to purchases, and unless you become current they "charge off" the account and turn it over to a collection agency. At which time it will be closed permanently. If you are at 75 days you are probably already with their in-house collection department. Generally at 90 days late they will turn you over to an outside collection agency. But this does vary by company and can be anywhere from 90 to 180 days.





You need to do what ever you can to get current before this happens, as that will be worse for your credit(and wallet) in the long run. Because even though the account is closed they are allowed to collect interest on the unpaid amount.