Here is the quick background. I was in credit counseling and lost my job. I then couldn't make the payments and had to leave counseling. I had a tempoary job and got a bit caught up I have a full time job again and am working on paying things off. I completely forgot about one card, got a call yesterday from a collection agency They said that i should have recieved a collection notice in the mail I said i didn't get it which was true but it was in my mailbox when i got home from work. the amount is around 5500 they offered me a settlement for 3900 but i can't do that They said that the account would go to chargeoff status and affect my credit score, and that they could file judgement against me. My boyfriend is a mortgage consultant, both him and his boss said they have never seen a credit card judgement. I'm reading all this stuff about judgements and it scares me. My boyfriend said that i should just let the collection sit there and that it probably won't do anything. I'm in MD.
2007-01-19 03:32:08 · 10 answers · asked by Sarah F 1 in Business & Finance ➔ Credit
Should I get a lawyer to contact the collection agency and step up a payment plan or should i do it myself. I have some friends who are lawyers and might help me if i need them.
2007-01-19 04:21:47 · update #1
A judgement is only entered when it is taken to court and you are sued. The answer is yes they can do this to you. It usually doesn't happen but on rare occasions it will. This is something you want to avoid.
First off you need to stop all phone conversations with collection agents and at this point in time communicate only via USPS and certified. Keep copies of everything.
But here's the real deal if you really want to make good on this then great. But first off you need to determine what you can afford. Then you need to communicate this to the collector in writing and have an agreement set up. Signed by them and you. Then only pay them by money orders. Do not ever give them checking account info. EVER!
No matter which way you go it is going to hurt your credit so choose your best route. Keep in mind that yes they can take you to court and sue you. You can prevent this from happening also. But the odds are that they are blowing a lot of smoke. I would say it is 85% chance that it won't go to court and they will hound you till the 7 year limit is up or the statue of limitations is up. All states that is different for the statue of limitations for collections and for what they classify this account type. IE verbal or oral contract.
There is about a 15% chance they will take you to court and get a judgement though. So you need to decide which is your better route.
I sent a link that will help you in understanding the collection process and credit. Also it will give you some ways to deal with debt collectors. Or you can email me for more info. I love giving debt collectors a hard way to go.
2007-01-19 03:51:04 · answer #1 · answered by logan 5 · 2⤊ 0⤋
I'm confident that you might find every financial answer at= loaninstantsolutions.us-
RE Credit Card Collection advice?
Here is the quick background. I was in credit counseling and lost my job. I then couldn't make the payments and had to leave counseling. I had a tempoary job and got a bit caught ...show more
2014-09-17 04:33:06 · answer #2 · answered by Anonymous · 0⤊ 0⤋
There is a little bit of misinformation here first if the debt has been sold to a collection agency the original owner of the debt cannot, and will not accept payment, it is not theirs. Second a FICO score of 447 is not high it is at the bottom of the list as the lowest is 350. So the question is do you play tough yes will pay 70% and you take it off or the heck with you will not pay. Either way your credit score will be damaged and not much you can do to rectify it, in the short term. Myself would take the hit for a year untill they come around and say yes will remove it as it is a new collection they have time on their side. If the calls become annoying as they will just request all communication is done in writing
2016-05-24 07:03:33 · answer #3 · answered by ? 4 · 0⤊ 0⤋
You should contact the collections agency and set up a payment plan. Your credit is already trashed so it going to charge off isn't going to impact you much.
Regarding the judgment, I've seen them several times. But, it won't happen out of the blue. They have to take you to court and then they have to win. For that amount, it's pretty likely that they'll do it if you don't set up a payment agreement.
My suggestions to you:
1 - do not talk to them on the phone. Tell them to stop calling you and conduct everything via mail. This will give you a paper trail. You'll need to send everything certified mail, return receipt.
2 - go to www.creditboards.com and read their forums. They are a great resource and there are a bunch of sample letters you can use when writing to the collection agency.
3 - read the FCRA and the FDCPA. These documents will tell you what your rights as a consumer are which is important since collection agencies are sneaky bastards.
Good luck to you!
http://www.personalfinance101.org/?utm_source=YH&utm_medium=link
2007-01-19 03:38:59 · answer #4 · answered by personal_finance_101 3 · 1⤊ 0⤋
If you went back into credit counseling with the same people you might get some answers from them. If not try them any way.
One thing to remember is; the collection place that got hold of you has bought the det from the credit card company. They will try to scare or force you into giving them money. Before you do that talk to somebody that knows the laws in your state. In Colorado I know they can't call your work place if you tell them not to. If the det is over 3 years old they can not make you pay it. If you give them any money that starts that 3 year limit over.
Talk to somebody that knows the laws in your state because the law will vary from state to state.
GOOD LUCK.
2007-01-19 03:53:24 · answer #5 · answered by ancestorhorse 4 · 0⤊ 0⤋
Where I live (Nebraska), people do get taken to court for credit card debt, even if it's under $1000. The laws vary, and some state do not allow you to be sued for credit card debt. If they take you to court and get a judgement, your wages can be garnished.
See if the collections dept. will let you make payments on the debt. If not, once it's charged off, it will probably be sold to a third party collector, and then you may be able to make payments if you want to.
2007-01-19 03:53:17 · answer #6 · answered by milomax 6 · 0⤊ 0⤋
Sounds like you may be getting some bad advice? For that amount of money, it is likely that they would seek to obtain a judgment against you but they will have to take you to court first. Before they can get a judgment, you must be served with legal papers saying you are being sued. I guess you could wait for the papers to be served, and then worry about it but your best option would be to set up some type of payment plan....even if it is a small amount..just showing an effort to pay it will be to your advantage.
2007-01-19 03:37:05 · answer #7 · answered by not4u2c_yet 4 · 0⤊ 0⤋
First of all - don't talk to them. They will prey on your emotions. If they have a proposal or complaint tell them you want it in writing and respond in writing.
Go back to credit counseling and get a counselor that cares. There are plenty that do. I used CCCS and they were great.
Never heard of a judgement ... they will say anything to get you to pay something .. that is their job. Also .. they can say things to you that are illegal .. but you will only see legal things in writing.
2007-01-19 16:45:30 · answer #8 · answered by Texas Mike 7 · 0⤊ 0⤋
Your boyfriend is correct. It will just sit there on your credit history until either the statute of limitations runs out in your state or you pay it.
2007-01-19 03:36:44 · answer #9 · answered by aiguyaiguy 4 · 0⤊ 0⤋
I've seen them, it's a gamble just to say you're okay b/c two people haven't seem them.
2007-01-19 03:39:43 · answer #10 · answered by Byron W 3 · 0⤊ 0⤋