My son and his ex-roommate have been turned over to a collection agency for terminating their apartment lease early. My son is willing to pay for half of the debt since the lease was in both their names, but the collection agency is insisting that he pay the full amount since they haven't been able to collect from the other boy. Also, they refuse to work out a reasonable payment plan. They want him to pay $400 a month and have threatened to garnish his wages. He's only 20 yrs old with no assets and can't afford that much. Can they force him to pay for all of it on their terms?
2007-02-02 15:12:02 · 7 answers · asked by karlbritt 1 in Business & Finance ➔ Credit
Cold fearrr is mostly right.
They can't "force" him to pay anything without sueuing him and getting a court judgement against him.
The only leverage the collector has besides that is the threat of ruining your son's credit, which is real.
Tell your son not to pay a dime until they work out a reasonable agreement, and not to pay a time until he gets that agreement IN WRITING stating the full terms.
If they get abusive, he can write the collector a letter telling them not to contact him again and send it certified mail / return receipt. That will force them to stop contacting him, except for legal papers.
Read the Fair Credit Collections Act (linked below) - It's the law on what collectors can, cannot and must do. It takes maybe 10 to 15 minutes and will arm your son with ammunition to fight the collectors. If they start to make threats like they'll garnish his wages, he can quote the law to them.
2007-02-02 17:53:44 · answer #1 · answered by Uncle Pennybags 7 · 0⤊ 0⤋
They can't garnish his wages without going to court. They are playing hardball because your son is scared. If your son pays the entire amount they will still go after the other kid for the entire amount also. That's what they do. That's all they do. Offer them HALF of the HALF. In other words one quarter of what is owed. Tell them that is all you have. They will come back with an offer at that point. If any offer is excepted then get them to put it in writing before you send them any money. Then make sure they send you a letter stating your son's debt has been paid. Make sure they also send it to the 3 credit bureaus. If your son fails to make good they can take him to court. If your son is ordered to pay then he will be ordered to pay legal fees also. Don't let them push your son around. Also, don't tell them anything private like work numbers, cell numbers etc: One more thing when they call tell them your son moved or they will never leave you alone. This debt will stay on your son's credit report for up to 7 years. If they don't collect then they will sell the debt to another collection agency. They will also submit it to the credit agency's. It becomes a new debt every time they sell it. Best bet is work it out but get it all in writing before any money exchanges hands. They lie like a rug!
2007-02-02 15:25:10 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Unfortunately, yes, they can collect the full amount from him even if the other person's name is also on the lease. He will have to take the other guy to court to collect half. As for it being on their terms, it doesn't have to be. If they garnish his wages, it will show on his credit report, but most states allow no more than 25% of net pay to be garnished. Check your own state laws, then let the collections people know how much they would get if they garnish. They may be willing then to work out a payment plan on something in between.
2007-02-02 15:27:06 · answer #3 · answered by Brian G 6 · 0⤊ 1⤋
They can not garnish his wages with out first going to court and having a court order. Collectors love to say that about garnish the wages but in reality it is rarely done. Plus your son would only be liable for the money the landlord lost while the apartment was unoccupied. Forexample if your son had 7 months left to go, and 2 months later the placed was rented, then the only amount they could take from him is 2 months rent.
2007-02-02 15:22:31 · answer #4 · answered by johnietoth 2 · 1⤊ 0⤋
They go after 1) whoever is on the contract and 2) who they have a better chance of getting the money out of. They don't have to negotiate, but your son doesn't have to pay it either...he should just pay what he can when he can. If your state allows for garnishments then they can.
Have your son sue the roommate & pay the debt.
2007-02-02 18:58:24 · answer #5 · answered by bundysmom 6 · 0⤊ 0⤋
Tell the debt collectors to send you a letter saying they will accept 25% of the debt and consider it paid in full or just refuse to pay anything until they decide to be reasonable. I don't know where you live but I doubt they have the right or the power to garish anybodies wages. In my state wages may only be garnished by the Federal government for none payment of taxes or the state for non payment of child support.
Debt collectors will lie like dogs to get you to fork over cash. Never send them a penny until you have an agreement in writing. They have the power to settle for much less than you owe and the longer you owe it the more willing they are to settle. THey'll harrash you day in and day out hoping to get you to give in. Know your rights as a consumer. Look them up. Tell them not to call again. Another will soon enough and maybe they will be reasonable. When they settle your credit record should be back in fair shape.
I got sick of paying over 20% on credit cards and attempted to negotiate lower rates and payments to no avail. I quit paying and ended up settleing for 25 cents on the dollar on 2 accounts and no interest and small payments on two others. I kept one card clean and paid my mortgage and auto loans as agreed. I never suffered any reprecussions financially at all.
I got threatened with everything they could throw at me including sending the sherriff of San Francisco to arrest me ( I live in Texas)!
2007-02-02 15:34:09 · answer #6 · answered by cold_fearrrr 6 · 1⤊ 0⤋
Have him pay the full amount then he can sue his roommate for the half.
2007-02-02 15:18:40 · answer #7 · answered by evil_twin 2 · 0⤊ 1⤋