Our client retained our office after being sued by American Express for a $40,116 credit card debt. In this case, American Express, the original creditor was represented by the law offices of Cordoba & Associates. Our client moved from New York to Florida after losing his job in 2007. Therefore, at the time the case was picked up, the summons and complaint had could not have been served on our client.
American Express’s principal products and services are charge and credit payment card products and travel-related services offered to consumers and businesses around the world. The company’s segments include U.S. Card Services, International Card Services, Global Commercial Services and Global Network & Merchant Services. Prior to 2008, American Express was not a bank like most other major credit card issuers. However, in November 2008 the company converted to a bank holding company structure. American Express rarely sells its debt regardless of their age which makes defending against them and settlement more difficult as they frequently have or can come up with most of the evidence to prove their case. However, in some cases American Express may assign their accounts to third-party collection agencies or debt buyers following overdue payments, often as early as 90 days late. Cordoba & Associates has a history of working with American Express to collect defaulted credit card debt.
American Express is a notoriously difficult creditor to defend against and to negotiate settlements with. Our firm worked tirelessly to facilitate communication with American Express in this case and discussed our client’s situation and options for repayment. After several months of negotiation with the company and its representation, our firm negotiated a settlement of over 50% over a long term no interest payment plan. This saved our client a tremendous amount of money and protected him against a default judgment that could lead to wage garnishment, bank levy or even a lien on his home.