I recently got a phone call from one of my accounts that is in collection, that if I didnt pay the full amount by a certain date that they were going to tell the creditor to file a judgment on me, if I dont pay in full about $4,000. I have tried contacting the credit card direct but they direct me to the collection agency and the agency basically ignored my efforts.
(Ok here is the back story, I was about $13,000 in debt and I am only 24, I know its bad but I have paid all of it but $4,000 in the 3 years I have been working on my debt. This is my last and only debt I have left to pay off.)
If they take me to court what can they take, I don't own a car, a home or anything of value, I have made efforts to pay but they insist on full amount and well I dont have $4000 but I do have $250 I can pay every month.
Is there anything I can do to let them know I am making an effort to pay and really do want to resolve this? I dont want too and cant afford to go to court.
2007-03-02 04:35:41 · 10 answers · asked by jessica g 2 in Business & Finance ➔ Credit
I live in Washington State.
2007-03-02 05:01:57 · update #1
Take a photo of a homeless drunk, send it to them with a letter written by your sister, claiming that you are destitute.
This worked for me 3 years ago, and I have excellent credit.
Try it.
2007-03-02 04:42:18 · answer #1 · answered by Anonymous · 3⤊ 0⤋
What has likely happened is that the Credit card company who put you into collection, probably sold your account to a third party collection agency. That agency purchased the account from the credit card company for less than what was owed. Somewhere along the way payments towards the debt must have been missed for at least 90-120 days thus the reason for collection.
Now, the collection agency is demanding payment of the full amount the credit card company said was owed by you, even tho they didn't pay the full amount out to obtain your account.
If you are making the effort to pay, you acknowledge the debt and you have $250 a month to give towards it...they are likely balking at the length of time this will take to pay off in full. Were you to have $2,000 now, $2000 next month, or even $500 over 4 months you'd probably have no problem with them accepting it.
Do up a budget showing all that you pay out and all that you bring in...proving that $250 is the max you can afford without placing your basic necessities in jeopardy. Enclose the first payment...or better yet enclose the series of post dated checks for the full number of months you'll be paying this off.
Collection agencies for the most part are intimidators and work on the assumption that the consumer is an idiot and has no clue what is legal or illegal in their tactics to collect. Along with your budget and post dated checks, jot down a note that indicates your intent to pay for the next x number of months, presenting the enclosed post dated checks and inform them that you wish to have them confirm in writing that the checks have been accepted for payment. Should you not hear from them by (pick a date roughly 2 weeks into the future from the date you send the checks) you will assume that they have accepted this proposal and will process the checks as required. Should they find this proposal unacceptable you will then hand the matter over to your lawyer for further action. Don't have a lawyer? They don't know that...what's to say mom and dad aren't going to pay for the presentation of one?
They hate lawyers because a lot of their tactics really skirt the law and some go way over those boundaries. Talking lawyer intervention usually stops their stupidity because once your lawyer is involved they know that their chance of obtaining payment on their terms is pretty well toast.
Good luck
2007-03-02 05:00:55 · answer #2 · answered by dustiiart 5 · 0⤊ 0⤋
Basically Collection agencies like to play hardball. Offering $250 a month sounds reasonable. Put the offer in writting to the collection agency and send it by certified mail. Include the current amount of the debt and how much you are willing to pay a month. Most likely they will accept the offer, but just be sure you can maintain that payment schedule.
They still may not take it, but if they do eventually take you to court you could produce this document and offer it to the judge to say you were trying to work it out but they refused. But do not send any money to any company until they have accepted the offer. If you do this in the long run it may cause you more problems than it helps. If you must just start saving the $250 a month you were going to pay them, and if they still haven't settled in a couple of months you can offer them a single bulk payment.
However, if they do refuse that and take you to court the worst they could do is obtain a judgement to garnish your wages or freeze your checking account until the amount is paid.
2007-03-02 05:33:52 · answer #3 · answered by OC1999 7 · 0⤊ 0⤋
They are just trying scare tactics.
See what happens when you send your $250 to the credit card company that you actually owe the money to.
Next time you talk to the collection agency, tell them that you've made arrangmeents with the credit card company to make monthly installments. Insist that your credit card company found this satisfactory (even though they wouldn't, they've sold the debt and will not take steps to recover the money anymore).
Or, to really get them to go away, get a loan from somewhere else and borrow the money to pay them off. You may be able to negotiate a lower amount payable if you offer to pay a lump sum by a certain date in the near future.
Or, just start sending the $250 a month to the collection agency and stop taking their phone calls or trying to communicate with them.
2007-03-02 04:51:29 · answer #4 · answered by babypocket2005 4 · 1⤊ 0⤋
They just call and put the fear in you that they are going to take things away from you. THEY CAN"T.
If you owned a home they could place a lean on it, but they won't. You would have to owe them a lot more money. You have been paying on it WAY TO GO! They just want you to pay them all their money before selling your account to another collection agency. The Collection agency gets a %% of what ever they collect for you credit card company.
Don't worry keep doing what your doing, you'll be fine.
2007-03-02 04:42:26 · answer #5 · answered by Jessica H 4 · 1⤊ 0⤋
First of all, they have to take you to court in order to get the judgment. They may just be threatening you to see how far they can push you. In most cases, if it has been more than 180 days since your last payment, they will settle for a fraction of the original amount. Offer them a final settlement of what you feel you can afford. Get a contract from them agreeing to that amount so that they cannot come after you for the balance. Good Luck.
2007-03-02 04:45:21 · answer #6 · answered by Ti 7 · 1⤊ 0⤋
Hey, I had the same problem some time ago
And one of my friend recommend a consulting company
I think the # is (516) 837-7558 they are good
The guy that help me was Jose Gonzalez.
Give then a call they can get you a settlement
2007-03-02 06:12:58 · answer #7 · answered by Jose A 1 · 0⤊ 0⤋
He can attempt, yet as long as you're taking place in courtroom whilst he sues with receipts exhibiting on time money of the quantity agreed to, he will maximum possibly lose (he additionally knows this and is basically attempting to intimidate you). He can't basically garnish wages or take issues without courtroom order and the only way he gets a courtroom order is to coach you broke the settlement.
2016-12-14 08:58:51 · answer #8 · answered by unck 4 · 0⤊ 0⤋
send the 250 each month by mail; dont ever talk to them again until the balance is much/much lower. they likely will take no action if the money is coming in like clockwork; send it at the beginning of each month and dont be late. call them in a year.
2007-03-03 12:23:59 · answer #9 · answered by CALIFORNIA GOLD 3 · 0⤊ 0⤋
What they can take depends on what state you're in. I doubt they'll want to sue you if you are willing to pay anything at all.
Most creditors threaten to sue, but few actually do.
2007-03-02 04:44:05 · answer #10 · answered by Anonymous · 0⤊ 0⤋