Okay, so my husband has a debt with a collection agency. We want to pay off the debt and when I called I told them we could pay $100 a month. They said that they would not accept this because it would take too long. They said that the payment would have to be at least $300 or more a month. On top of it all they said that we could make payments of $100 a month but that they would still take it to court. Is this even legal?
2006-07-28 07:01:52 · 9 answers · asked by nish826 2 in Business & Finance ➔ Credit
Send in the $100.00 payment. If that's all you can do, that's all you can do. They would be wasting their time and money to bring it to court, and they know it. It's a scare tactic. That's what they do.
Besides, if they refuse any money, you may find that in certain states that is a legitmate reason to believe that you don't owe them anything. You do want to make that payment though, this way you won't get further behind. They aren't charging you more than $100.00 worth of interest per month, are they?
2006-07-28 07:32:35 · answer #1 · answered by Anonymous · 1⤊ 0⤋
ceprn's advice is so terrible it's shocking! And you've been through this 3 times now? I wonder why?
Here is my recommendation. Whatever you do, try not to get a judgement issued. That will only hurt your credit for a lot longer.
Make up a letter to the collection agent with this proposal. And whatever you do...DO NOT OFFER TO PAY ANYTHING!
Once you make an offer, or actually send in a payment, you are restarting the Statute of Limitations on the debt. Read the link below for more information on this, and why it's important.
If $100 is all you believe you can afford to pay, then explain this in your letter. Tell them that if you can afford more in the future you will pay it, but at this time it's not in your budget.
Demand that if you do pay this bill, they must agree IN WRITING to remove any negative information from your credit report. This means either changing the status to say "paid as agreed, never late", or to delete the entry completely. They will probably fight with you on this, or say it's illegal. Trust me, they can do it, and it is legal.
How much is your debt? If we are talking about several thousand then they will most likely not accept this offer. They are not going to wait 6 years to get their money. But if we are only talking $2000, then your plan is reasonable.
If they reject this, be sure to get it in writing. Then you have no choice but wait for the lawsuit. But note that in many states, the judge can order payment plans. If you show the judge that you offered to pay a reasonable amount, and the creditor rejected it, the judge could easily agree to such a plan.
I know of someone who owed $2000, and the creditor was being a complete jerk, demanding everything at once. The judge ordered a $5/month payment plan.
If/When you do send them a payment, be sure to write on the check a memo that you are paying "as per your written agreement of $100/month". Be sure to enclose a copy of their agreement. This will constitute a "contract volation" whereby the previous contact is being changed.
You will probably get advice to just send them a check, and once they cash it that constitutes volation. Be advised that in many states this is a "grey" area and doesn't impress many judges. If there is no clear agreement they will not allow it.
By the way, why are you even talking to a collection agency in the first place? Contact the original creditor and negotiate with them.
2006-07-28 09:16:05 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Most definitely send in the $100 payments every month. Keep record of all payments. Also don't send checks, creditors keep records of this and if by chance they sue they can easily attach your account if a judgment is obtain. Is your account with an attorney's office or just a collection agency. If it's not with an attorney you have nothing to worry about right now. If your making the $100 regularly, depending on your balance, you may have the balance low enough to where they couldn't sue anyway.
2006-07-28 07:21:08 · answer #3 · answered by Danielle M 3 · 0⤊ 0⤋
You can still send them the payments of $100. Chances are if they do take it to court (which they probably won't if they are receiving money from you, court is too much time and expense), the judge will see you are making payments according to what your finances will allow and that will be in your favor.
I don't see how they can legally take you to court for a debt you are paying, I don't know for sure though.
2006-07-28 07:12:32 · answer #4 · answered by corel 3 · 0⤊ 0⤋
So, stop paying them... Of course, they could sue you, but they won't - they just use that to try and scare you.
If they won't "settle", and take 100/mo, call their bluff next time - tell them "so, sue me"...
The worst that can happen is.... nothing. If the debt is already in collection, then it's already on your credit report. If you ignore them now, they bad credit drops off your file in about 7 years. If you pay off the debt, then the bad credit stays on your credit report for ** 7 years after you pay it off **!!!
2006-07-28 07:11:28 · answer #5 · answered by ceprn 6 · 0⤊ 0⤋
i think as long as you are making an attempt to pay they cant take you to court,your credit wont be pretty but they have to accept payment. i dont know for sure though
2006-07-28 07:09:35 · answer #6 · answered by san_ann68 6 · 0⤊ 0⤋
Yes, it's legal. But, even if they get a judgment - they still have to try to collect it.
2006-07-28 07:09:52 · answer #7 · answered by The Man 4 · 0⤊ 0⤋
Go see the manager of the bank.
2006-07-28 07:05:20 · answer #8 · answered by Equinox 6 · 0⤊ 0⤋
NOPE
HJR-192
UCC 3-603 (B)
2006-07-28 12:40:01 · answer #9 · answered by rhett_madison 3 · 0⤊ 0⤋