I am trying to come an angreement with a debt collector. I have offered a payment plan that would take me almost a year to pay off. They stated to me that they only do 3 month payment plans and that they do not have to accept my payments if I make them before signing an agreement, how much of this is true and extension of the truth or outright lies?
2006-09-11 09:12:35 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
Good info so far. I don't have collateral involved it is for a deductible. I was hit by an uninsured driver while driving a rental and so I had to pay the deductible. I never paid it because I was unaware of the obligation until the collection agency called me. I spoke with my insurance and even though I am not at fault I had to pay my the deductible portion of the repair cost.
2006-09-11 10:42:50 · update #1
Sky is correct. Mag G....since when does debt consolidation come for free? Perhaps you could give me a source or company name?
The fact is a collection agent (or even the original creditor) can agree to whatever terms they want. But if you are going to offer a installment payment arrangement it must be reasonable, and should not take years to pay it off. If you have a plan to pay it off in one year, that is reasonable.
Note that in many states, if this should go to court and you lose, the judge does have the ability to order an installment plan.
So my suggestion is to first check you state law and see if this is the procedure. Then send a CERTIFIED letter, return receipt to the collection agent with a payment proposal. (assuming this hasn't been done already)
Make sure they send you a letter back with their response, especially if it's a denial to your proposal. That way, if they sue and win, you could show this letter to the judge showing you were trying to make a reasonable attempt to pay off the debt, but the creditor refused it.
The judges in my area are very pro-consumer. In one case, he ordered a $5 a month payment plan on a judgement of $2000, because the collection agent was a total jerk.
When you negotiate, explain your current financial situation, and pledge that if, during the payment period, your financial situation changes you will increase your payments or pay off the entire debt.
One more thing....demand that in exchange for paying off this debt, they must delete this entry from your credit history.
Good luck
2006-09-11 10:15:20 · answer #1 · answered by Anonymous · 1⤊ 0⤋
I used to work for a credit debt collector, and they do not have set 3 month payment plans, they will tell you this stuff to get you to pay it off faster because they are making a commission off of you. You do not have to agree to their terms, in fact you can ask to settle the balance by giving them a lower settlement amount. Good luck and don't let them get to you, they can only call you once a week and if you say the word harrasment they will get very nervous. Everyone falls behind sometimes, due to lay offs and family issues or other things, and you do not need to be harrassed by them.
2006-09-11 16:18:30 · answer #2 · answered by Sky 5 · 1⤊ 0⤋
The collector is more than likely telling you the truth. If he could accept your deal, he would. It sounds like there is collateral involved. Is there? The collector is coming across like if you won't accept HIS plan you are going to lose your _____ (fill in the blank.) If there is no collateral and the loan is already past due, then you are not worried about your credit. If this is a credit card issue then he's scamming you. Why are you not going to a debt consolidator? I don't like them but they would help and they are free.
2006-09-11 16:22:55 · answer #3 · answered by Matt G 2 · 0⤊ 3⤋
NOT MUCH! They are liars beyond belief! NEVER speak to them...keep it ALL in writing, the lAWS are set up to protect us against THEM...95% of all credit laws are in OUR favor! They can sue...but most do it because of the $$$$$ to do so...they can report for 7 years...NEVER EVER give them a cent...they are commonly refered to as bottom feeders..they live off the hard times of others...never feed them $$$$$$$$$
2006-09-11 17:02:16 · answer #4 · answered by Anonymous · 2⤊ 0⤋
The FTC regulated debt collectors on a federal level. Please visit their website for a plethora of information on debtor rights.
http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm
2006-09-11 20:18:38 · answer #5 · answered by what the heck? 3 · 1⤊ 0⤋
freeze your bank account
2006-09-11 16:14:05 · answer #6 · answered by valgal115 6 · 0⤊ 0⤋
They can't do anything but sue you.
2006-09-11 16:15:46 · answer #7 · answered by Anonymous · 1⤊ 0⤋