I was laid off about 2 years ago and had something repossessed (about $10K), I took full responsibility and made contact last year with the collection agency to arrange monthly payments, I've been making consistently payments - on time for about 8 months but was shocked to read my monthly payment had jump from $200 to $2000 when reading this months statement. When I called the collector, he said their attorney sent something in the mail and I should receive it shortly and they have the right to change the amount of payments at any given time. He also commented upon looking at my credit report, I didn't have bad credit and noticed that I had paid things off quickly in the past but didn't take into account that was when I was at my old employer making 2 times more. I don't want further ruin my credit and can't afford a lawyer. Somehow this doesn't feel right to me, can someone please shed some light?
2007-03-19 07:31:34 · 10 answers · asked by turkeybird 2 in Business & Finance ➔ Credit
I am taking a Business Law course at a university and the first thing we learned in their is when you have a contract AKA. an agreement to how much you will pay someone per month as long you both agree to the amount it is binding. However after saying that, you are dealing with a bill collector who you owe money to. My question is are you earning more money now they you were before. Because they can seek a garnishment from your pay if you are. Visit the website www.freeadvice.com and click on Bankruptcy and Bill collections. Good luck to you!
2007-03-19 07:44:22 · answer #1 · answered by Anonymous · 0⤊ 0⤋
if a contract is in default then full payment is due IMMEDIATELY read the fine print. If this is a collection agency then YOU can manipulated them
STOP paying them. tell them you were ok with 200 but not with 2000, they are testing the waters my friend. they want to know your paying ability. just STOP paying them altogether and see how they act
they will GLADLY accept 200 over zero any day
and I bet you propbably have already paid out more money to them fools than you borrowed to start with. Tell them that . Ask them to prove your beginning balance
they cant and wont. all they want is what THEY need PLUS the creditors balance as well and guess what I worked at these places for over 20 years and the original creditor gets pennys on the dollars. the collection agency sucks it up and it gets charged off and ruins yer credit anyway.
2007-03-19 07:57:31 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It is not right. You two made an agreement to the 200 dollars.
I do not think that it can be changed, unless you are in default, even if you were before. He is the one that agreed to it.
If you cannot find a legal representative, I would keep making the 200 dollar payments. They cannot deny the payment.
If you keep paying, they cannot hold a judgement against you. Keep all receipts for the payments you have made to them. If you continue to have trouble, then I would suggest finding a place that will help you with this sort of thing.
2007-03-26 05:35:18 · answer #3 · answered by kmf77 3 · 0⤊ 0⤋
Did you get a written agreement for $200 a month which you honored? (No lates?)
Continue sending $200, tell them that's all you can afford, and include a letter that shows your payment history and the $200 payment. Continue doing so while things get sorted out-- they may decide to just settle back down.
In a court case if you can prove they accepted teh $200 payments for six months before sending the next letter demanding $2K, you should win even if they didn't sign a letter agreeing to the $200 in the first place. . . it shows that you had a verbal agreement when you back it up with the proof.
2007-03-19 08:02:25 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Bill collectors can make up their own payment structures, and charge as much as they can get from the borrower. But it really depends on what they agreed upon with the original creditor.
You can probably still talk to the original creditor to work out a deal. Also find out if the debt has been charged-off.
And if you don't pay the collection agency, they will likely just move your debt to another collection agency. Usually these companies just push as hard as possible to get as much as they can, but it's mostly just intimidation factor.
Whatever you work out, make sure you get it in writing and don't commit to making payments you know you can't make.
Learn more at http://www.thetruthaboutcreditcards.com
2007-03-19 08:18:46 · answer #5 · answered by Todd S 3 · 0⤊ 0⤋
Unless the collection agency has obtained a judgment against you, this is highly illegal. You could sue them for well above the balance of your outstanding debt, IF, you have a document stating your arrangements.
If you have nothing on black and white, it turns into a he said, she said situation. You should review a copy of the Fair Debt Collection Practices Act or FDCPA.
2007-03-20 17:48:42 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Well it sounds odd but if you credit is still good (as the creditor said), you should have no problem transferring the loan to a more reputable company.
2007-03-19 07:42:28 · answer #7 · answered by Ernie 4 · 0⤊ 0⤋
I dont think they can do this without taking you to civil court and asking for a new judgment to be made against you. I would contact a lawyer and have them help you.
2007-03-19 07:42:48 · answer #8 · answered by Kris 3 · 0⤊ 0⤋
It depends on the agreement they you signed. In general they can't raise you payment without your permission.
2007-03-26 08:21:54 · answer #9 · answered by v.m 2 · 0⤊ 0⤋
stick with your guns. your doing alright buy paying them something you can afford. no court will hold that against you.
2007-03-25 10:44:05 · answer #10 · answered by james c 1 · 0⤊ 0⤋