[MUSIC] Hi there, Michael Bovee with
Consumer Recovery Network and I wanna record a video today
that talks to how to settle with Wells Fargo, your credit
card debt, specifically. Wells Fargo as a national bank,
national credit card issuer is one of the larger
ones in the country. And they’re pretty set in their
ways, much like Bank of America, Chase, Citi Bank, these large
credit card issuers that have some set policies for how they
deal with their card members and their customers when they’re
unable to continue to pay them. So as with any bank, if you’re
current with your credit card payments, you’re really not
gonna get anywhere with your negotiations or trying to talk
with a customer service rep at Wells Fargo about how they
can accept less than what you owe them as
a pay off in full. But as you’re late,
month two, three, and more often when you’re
over 90 days late, the banks start to become
a little bit more open to having a dialogue with you
about settlement. And much like all of the other
banks that I cover on our YouTube channel, Wells Fargo
is similar in that your best settlement options are usually
gonna come when you’re bucking up against that time frame
where they’re gonna have to write off your debt as a loss. As you’re paying them, they
record your data as an asset. As you quit paying them, they
have to accept it as a loss. And they can’t do that
any later than 180 days of consecutive non payment, or what is often referred to
as seven zero-billing cycles. So that’s typically six months. When you’re in your,
say, fifth month, and two weeks of having missed your
payments, you’ll find that, that can often be
around a six and a half month, but
you’ll find they’re most open to discussing a lump sum settlement
with you in and around the 40%. At the time that I’m
recording this video, we’ve got a couple of
days left in 2015. Wells Fargo’s policies and trends have stayed pretty
consistent all year. I don’t really expect
them to be much different going into next year. However, having said that, in the last few months I’ve seen
them be a little less forgiving, a little bit more strict in
the types of settlements that they accept, they’re
definitely sticking to 40%. I’m seeing fewer and fewer 35%
deals done with Wells Fargo. And even after they
charge off your account. So it’s gone, say six, seven,
eight months without payment, their recovery department is
currently holding onto those accounts, so we’re not seeing
a lot of outside debt collection placement right after charge
off like we had for many, many, many years. They’re retaining them for
a couple of extra months, so you’re now working with, instead of the collections
department at Wells Fargo, you’re working with the
recovering department at Wells. And they’re a little bit easier
to work with in some ways, and less easy to
work with in others. Also some things that
are unique to Wells Fargo, is they silo some of
their collections. If your account with Wells Fargo
is over a certain dollar amount, you’re probably gonna
be working with one department versus another. If your account is a business
account, you opened it up as a small business or
a sole proprietor, a DBA. And it’s opened up in a business
name, even though you’re kind of on the hook personally, gave
your Social Security number. They’re going to deal with
you a very different way, and you’re gonna be working with
the business collection or business recovery department at
Wells, not the consumer side. So what type of account you
have dictates who you’re gonna work with and sometimes the percentages that
you’re gonna be able to get. And the size of the balance
of your account is sometimes gonna dictate
whether or not you’re gonna have a document-intense
type of negotiation. Wells Fargo is one of those
banks where if you owe over a certain amount, they’re gonna want to get
detailed financials from you. They have a financial worksheet
that they’re gonna want you to fill out. It’s several pages long, it talks about some of
the high line income and budget monthly expense type of
items, like rent, mortgage, car payment, insurance, gas,
groceries, those kind of things. They’re gonna want
those details. And if your information
does not support them taking a significant haircut,
that this is all the money that you’re offering us, all that
you’re gonna be able to do. And your information that you
gave them suggests that you have different assets,
your income is really strong. And it’s just other reasons that
have led to you not being able to pay them, they may be
willing to just hold out. Maybe not settle
with you at a rate of savings that is consistent
with somebody that they’ll offer a true hardship
settlement amount with. So be careful when you owe Wells
Fargo over a certain dollar amount, that you’re prepared
to share with them income and expense information. Potentially tax returns,
especially if you’re a small business, you have
to be prepared for that. P&Ls are, even a bank
statement or two, okay? So be aware of that, they are
one of the few creditors that is going to ask for
that on a consumer side of debt. But the higher you go
in balances that you’re negotiating, be prepared for
that. Wells Fargo, I’ve always
considered a very consistent in their policies and
procedures. And like I said, it’s this year
that I’ve seen some changes, and I do expect to see some
additional changes. I might come in and
do some updates to this video. I also find, just for those of
you with Wells Fargo credit card business accounts, that their
collectors on the business side, at least at the recovery
department, not the internal collections side that you’ll
deal with for the first six months of not paying your
business Wells account. But the recovery department
that deals with you after the first six months,
to be quite aggressive and even stretching the truth
a little bit in some instances. So be very careful of what you
hear, and let’s talk about any concerns that you might
have in the comments below. I’m here to help answer any
questions that you may have right here on the channel,
on the website, or you can call the hotline and have a free one-on-one consult
about settling with Wells Fargo. Look forward to seeing
you on the next video. [MUSIC]