Collections?

Question

I recently sent a cease & desist letter along with a settlement letter to a collection agency...they called me today to tell me they received the letter and that my settlement offer had been declined and also said the account was turned over to their legal dept.
Why would they call me after admitting they receieved the cease & desist letter?
Being that they declined my settlement offer of $1995.00 which is $1000.00 less than they were trying to get from me...should I make another offer.
What can I expect from this point after they told me it was turned over to their legal dept.

Answer 1

I agree with Encyclopedia Magandaca and also with everything stephen h said (the only two who gave correct answers in my opinion)

Unfortunately there are a few that answer questions on here who seem to make it a habit to tell people to send a full C&D (instead of recommending sending a "limited" C&D) regardless of how damaging a full C&D can be - as you now know.

stephen was correct when he said that after receiving a full C&D they can contact you once, and it can either be by mail or phone, to let you know what they plan to do with the account - sue or sell, and it sounds like they aren't planning on selling it.

It's possible that they may have taken the offer you requested, but the full C&D prevented them from doing so. It will also prevent them from taking any other offer you may decide to send to them.

I agree with stephen that you NEED to learn the collecting SOL for your state to see where you stand.
If you are past the collecting SOL, it may be in your best interest to send them a SOL letter ASAP.
If you are past the collecting SOL and are sued before you can send a SOL letter, you need to include in your answer an "affirmative defense of SOL"

If you are still within the collecting SOL, you "may" be able to do damage control by dealing with their attorney
To do that, you probably need more informed opinions than you can find on here.
There are a few very good credit related discussion boards that you might check out. ("never" use one that tries to sell their info or requests money for anything !!! )
While the particular site that stephan posted is not my normal stomping grounds, I do run through it from time to time and I know it is a pretty good site. You might do some reading or ask questions in there.
You might also click on my profile and click on the last link I have listed and do some reading, ask questions, on that board as well.

Answer 2

After receiving your letter they are allowed to contact you to advise you that the account is being turned over to legal and to advise you that your sttlmnt is rejected.
Since it has been turned over to legal, which is VERY COMMON when someone sends a C&D letter, you can expect to get sued. Thye will file a suit against you, serve you and motion for a judgment. You can put in for an appearance but the only thing that is good for is to deny the debt, and since you offered a setltement you admitted to woing the debt and they will use your own settlement letter against you. The courts have no jurisdiction to make the collection agency take a settlement, or any type of payment plan, they are simply there to make sure the debt is valid.
once a judgment is obtained they will start to garnish your wages, bank account Etc. If you own property they will place a lien on it, if you own a car or have substantial equity in a car they can sieze it and sell it at suction to pay off your debt.
If none of this works they can order you into court and the judge will make you tell them where you work, where you bank, and you will ahve to tell them about all assets, income and personal property. If you do not comply they will find you in contempt of court an dyou will be detained. if you do not show after being summons to court then they will issue a warrant for your arrest.

I would contact them immeditally and try to work it out. Even if you ahve to pay the full amount it will save you in the long run. A judgment will stay on your credit for 10 years, not to mention all the extra fees and court costs involved. Your 3 thousand dollar collection account could go up to well over $5000 after judgment.

Good Luck!

Answer 3

Good question. They can ONLY respond to your letters...which is what they did. However, if they call or write again to harrass you about paying this debt, make note of it. Keep a log of it and sue their ***.

Write them another letter, tell them you will give them a little more and that it's that or nothing. Let them know that they will never see another dime from you if they don't accept.

These guys are professional slime. They are the most miserable human beings on earth. They live to make others miserable.

Get it in writing that they will remove it from your report once you have paid the amount you both agree on.

Good luck

Answer 4

If the collection is relativly new, they are not too eager to settle. You have to just get on the phone and advise them that this is all you have and you are ready to pay them now. Tell them to fax you first and you will pay over the phone as soon as you get the fax. Tell them you are trying to avoid filing bankruptcy and are making settlements with all your creditors. If they still say no, ask to speak to a manager. Be persistent. Some times if they here bankruptcy, they know they will never see the money and inturn never make any commission off of that collection account.

Answer 5

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Answer 6

They are implying that you will be sued. The C&D letter leaves them no choice but to sue. They can call you once in reference to the letter as long as they aren't harrassing you to pay.

How old is the debt?

When was your last payment?

What state do you live in?

These things are used to determine the statute of limitations in your state.
If it is out of SOL, that will be your defense when they sue you.

I would post the details here (http://www.debt-consolidation-credit-repair-service.com/forums/forumdisplay.php?f=174) so the experts can advise you how to proceed from this point.

Answer 7

If you followed all the requirements from the FTC website, you are okay to send the letter, I would not call them anymore, who is the original creditor? Is it possible that you can call the original creditor and settle? How old is the debt?

Answer 8

They were just calling to update you. Im sure as long as tey didnt request a payment, they are within their rights.
You can expect to be sued for the debt.