Is this a violation of the Fair Debt Collection Practices Act?

Question

I made arrangements with a debt collector to pay off a balance in 3 monthly installments. The arrangement was sent to me in writing by fax. All payments were to be taken out of my checking account with postdated checks. The first payment was made with no problems. However, due to financial difficulties, I could not make the second payment. I made several attempts to contact the collector with no success. No one returned my phone calls. I never received the required mail notification of the collector's intent to withdraw the funds on the next date. So, I placed a stop payment on the second check. I just discovered they deposited the third check, which wasn't to be deposited until 2/15. However, they did change the deposit date on the check.

My next step is to contact the FTC and find out how to pursue this. As of now, I am livid. I am in a situation where my account could be overdrawn, and I have very little money. Anyone believe this was a violation of the Act?

PLEASE READ THE ACT BEFORE ANSWERING. THE FAIR DEBT COLLECTION PRACTICES ACT CAN BE FOUND AT ftc.gov. THANK YOU.

Answer 1

Unfortunately you dealt with a collection agency via phone and fax. Worst mistake you could have made. Any communications with them should have done via USPS and certified with an agreement in writing.
So the end result is that they are within thier rights and can do what they did. The FTC will tell you the same thing. Local laws also can play a role in this as some states allow debt collectors to accept partial payment and then to farm it out again for the difference or even to renegotiate a settlement.
My best advice is to realize that you made a mistake in how you dealt with them and they did what they want. You have no proof from them to back up your side. You also gave them your account info which they will still try to use and collect from you.
Next time and I hope you don't have one, Put it in writing and send them money orders. Communicate with them by certified mail only.
I wish I could tell you something better. I deal with people all the time who got shafted by collection agencies. For a little help with your situation check out the website i gave the link for.

Answer 2

Actually I'm sorry to say that it isn't a violation of the Fair Debt Collection Act although the way they handled this is terrible. Your agreement was that you would have the money owed on your debt available on the consecutive monthly check dates. Common sense by the collector shoud have dictated to him/her that the monies would not be available until those dates.

Contary to popular belief, checks are negotiable instruments from the day they are written until 6 months after the date on the check. If you write me a check today and date it March 1, 2007, I do not have to wait until March 1st to deposit/cash the check and try to collect my money, I can do so immediately.

The collector is not required to notify you of their intent to withdraw the money by cashing the item as you authorized that action when you executed the checks.

Sorry that's not the answer you wanted to hear.

Answer 3

It is sad but they have every right to enforce the original agreement that you have with them. I work for attorney part time and we get stuff like this all the time from people. The agreement in which you signed and agreed to is legally binding. A document and or verbal agreement may only be cancelled and or changed within the first 3 days of the agreement otherwise all terms and conditions are legally binding. There is nothing that you can do and in fact the debt collector can come after you for breach of contract. This is a sticky situation and if I were you I would find a way to get the money into your account and get this done and over with.

Answer 4

The violation occured when you missed your first payment.

Besides, a post dated check means nothing anymore. If I recieve a check that is post dated I really don't care. I either, won't count that payment as on time or I will process the check anyways.

Sorry, but I don't think the FTC will do anything. You made an agreement with them and did not stick to it.

They are in control now.

Answer 5

I am sorry to say that I think you put yourself in a VERY bad situation here. Basically you wrote two bad checks. Now you have violated arrangement with the debt collector and wrote bad checks, which is a crime.

Post dating a check means nothing. By law the check must be good when you write it.

Car dealers try this all the time. "Write us a check now and we will hold it until you move the money." For your own good NEVER do this.

Answer 6

If you missed the second payment, you abrogated your agreement with the debt collector, authorizing them to pursue the entire original claim. By stopping payment on the second check, you left them no choice but to deposit the third one.

I'm afraid they were entirely within their rights.

Answer 7

that's beneficial to envision with county clerk the place Garnishment is filed. It sounds fishy to me. this is complicated to those human beings coping with creditors. no longer all and sundry are below-average credit risks, or maybe nevertheless have values while it is composed of credit. I even have at the instant been garnished, and by using no help of lawyer, purely frustration and examine, discovered that i ought to record a Traverse of Garnishment, and that doesn't provide up garnishment, yet, holds the money interior the courts till listening to. unsure if this facilitates, yet, sounds as though we are interior an identical boat. stable good fortune, and don't provide up discovering. The solutions come from the main unlikely places.

Answer 8

if you're in debt, i suggest you take a look at this site. just fill out the form and take it from there.

Answer 9

yes