Can a creditor sue me if I make reasonable payment offers?

Question

I have a creditor hounding me, and if they get the machine they call my neighbors friends and mother. The harrassment is pretty much a daily thing.
Last friday they gave me an ultimatum. I called back sat, got the machine, and told them I would get my taxes done very soon. I got software and am doing them tonight. Sunday they called my neighbor. Today I called back and they demanded 4200 dollars or id be sued if i didnt pay back in 4 hours.!
They also insisted I post date a check. Isnt that a federal offense to "kite" money you dont have? I offered any tax refund I had to these people. Also I reopened a line of credit, which cant be accessed until I get a new card. I dont really want to pay debt with more debt but feel i have no choice. I feel like my solutions I offered were reasonable. Please help

Answer 1

http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm

So many answers here are only partially right...Take a look at the Fair Debt Collection Practices Act in the web site above.

It is NOT illegal to write a post-dated check. If it were, advance payday loan companies wouldn't be in business. It IS illegal to not have the funds in the account to cover it on the date of the check. But that's on you, not them.

Section 805(c) of the above web site says that your request to cease communications has to be in writing.

"If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt..."

They don't have to accept any money you send them, other than balance in full. And they won't if their client (the company you owe the money to) has advised them that they would rather sue than take payments that small. And yes, that does happen. I've seen plenty of checks returned for exactly that reason.

Per the FDCPA, if they are threatening to sue you, they must intend to do so.

They are allowed to talk to your family or friends as long as they don't reveal that you owe a debt. They can call more than once if they're talking to different people each time.

They cannot call you more than once a day.

They can report your debt to the credit bureaus. I received many calls from people who now wanted to pay their bill because they couldn't get a mortgage or car loan without doing so.

State law may supersede Federal law for some of these items, but you don't say where you live.

Answer 2

How old is this debt? What is the debt for (medical, credit card, car payment, other)? Have they shown you they have the right to collect this debt? There are federal laws to help you.but some laws are decided by each state. Search "creditor debitor and your state" to find what you need.
Legally (ha-ha) collection agents cannot contact relatives or people you know to collect the debt. They are allowed to call once to find out where you work or your phone number or how to contact you. They must keep your debt private.
You can also contact the Consumer Credit Counseling Services in you area or by search engine.
http://moritzlaw.osu.edu/shlc/docs/debt-collection.pdf

Answer 3

It is a threat tactic but the problem is they can sue anytime the debt becomes due. Even if the solutions you offer are resonable they have no duty to accept. They probably don't want to sue in court or they would have already. Your best bet is to just pay when you have the money and just don't take their calls until then.

Answer 4

You can send them in writing a letter saying you want proof of the debt. This will stop the calls until they provide that to you. If you want to challenge it, they must stop all calls to you, your neighbors, etc. Its the law.
Also, if you are making payments to them, they can't sue you. If they do, let them, because your cancelled checks will be proof you are paying them.
Post dating a check is not illegal, because they can't cash it until that date. What it does is allows them to be guarenteed that they will get money.
What you are doing is within reason, and if they do sue you, just make sure you have it documented.

Answer 5

What they are doing to you is ILLEGAL. You don't have to put up with this crap, and you certainly don't have to use one line of credit to pay for another. Here's what you should do: Tell them you're tired of the harrassing phone calls, so from now on all communication must be in writing. Be sure to tell them that YOU WILL SUE THEM for violation of the Fair Debt Collection Act if they call you again. Do NOT post-date a check to them -- you're right, that IS a crime -- and make it painfully clear that you want the phone calls to stop. Be sure to send them SOME money every month to show that you are making a good-faith effort to pay your debt, and send them payment offers IN WRITING showing your financial situation and explaining to them that you cannot simply hand over money you don't have. If you make three reasonable offers and they don't agree to any of them, write them back and tell them you want an arbitrator/mediator to settle the dispute. If they don't agree to your request or try to have your wages garnished, get a lawyer.

Answer 6

you are trying to be reasonable to the most unreasonable aspect of our culture.

but if i were you, i wouldn't freak out.

each time they call you tell them to be patient with you because you have decided to record every aspect of the conversation.

ask for first and last name of the phone rep.
ask for the complete mailing address. if they give you a po box, just politely tell them that you were planning on sending in your payment via fedex, who can't deliver to a po box.
whenever they say something, make them repeat it very slowly - what i would do if i were you is that each time they call, i'd open an e-mail to myself and write down everything that is said.

these guys want to scare you, but they will become a bit off balance if they are made fully aware that they will be held fully accountable for everything they say to you.

if they tell you to post date a check - just dummy up and pretend you don't know what they are talking about - make them spell out what they are asking you to do.

be particularly aware of the language that they use. take special note of any time they call you 'honey,' 'sweetheart,' 'hun,' 'toots,' or anything along that lines. if they do you might be able to legally get them banned from calling you ever again for sexual content.

speak with your family and neighbors and tell them that you would greatly appreciate it if they could document exactly who calls and when - calling your neighbors and family is way over the line and most likely against the law - especially if any of them are on a no-call list.

i had a huge problem with chase credit cards and actually got the attorney general of my state involved in the case - who asked chase to reduce my rate on my card. they did but only briefly.

now that i'm well off, i paid them off and told them to stick their loan sharking, extortionist credit rates where they sun don't shine, but their noses get plenty brown.

above all, remember that you are dealing with a criminal organization, not a legitimate entity - treat them as such.

insult them by being overly polite - the way you are to servants - odds are they won't get the slight but anything that can make you feel just slightly more in control can make YOU feel better.

more than anything else, remember this and remember to NEVER EVER EVER EVER EVER EVER EVER AGAIN GET AN UNSECURED CREDIT CARD.

i now only have mastercards that are drawn directly on my checking and savings accounts.

credit cards are nothing but a gigantic trap. no matter what you see on tv, each of them has the same basically illegal language in their contract to you - that if you are late with any bill to anyone they reserve the right to raise you credit rate to extortionist rates.

good luck.

Answer 7

I think it's just a threat tactic, they're trying to get you to do anything to pay them, that's why they harrass, and hound etc. I don't think they can sue you, because that would cost them more money than what you owe them. Call them again and tell them that you are going to pay them as much as you can as soon as you can and that they will get what you owe them. I hope you won't let this happen again.

Answer 8

Check the "Fair Credit Collections Act" . They cant do the thing you've described, and you can actually end up sueing them....and say goodbye to that pesky bill....I laugh because I've done it.

Answer 9

Their biggest offense is calling your neighbors, friends and others. Contact the office of the attorney general of the state where you live.

Answer 10

Hire a tax lawyer, i am not sure what you should do.