Recently I have received calls from a collection agency that claims to be a law office. The first time they called they said this was the last chance I had to pay them the full balance ($7,200) before they sued me. They suggested that I should ask my family members (which they named off) for the money. I told them that I would ask my family and that the only thing I can currently do is make some type of payment plan. They responded that the only options I have are to pay it off now or get sued.
The second time I informed him that I would not ask my family member for $7,200 and that I would just have to let nature takes it course and they can sue me. Once I told him that he was open to the idea of a payment plan. The catch was that I would have to use my Sears credit card, which I forgot I had, to make a $2,000 payment to them then monthly payments after that.
I want to pay this debt but I am not using a credit card to do it.
My question is what are my option here?
2007-07-17 07:04:58 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
If the collection agency won't work with you, go ahead and let them sue you. The judge will take a look at your income and expenses and order them to accept a monthly repayment schedule.
2007-07-17 07:09:51 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It's obvious to me you have one of the "class A" collection agents. Your debt is rather large, and this guy is out to make a nice commission if he can somehow con you into paying.
So far he has:
-Implied he is a lawyer or works for a legal firm and threaten legal action
-Tried to con you into taking a loan from family members
-Tried to con you into supplying credit card information....do you think they will stop at the initial $2000??
What comes next.....
-He will begin to offer you settlement amounts for less then the $7200 you owe
-He will ask for a "good faith" payment, which will effectly restart your Statute of Limitations
-Begin calling your friends and family
He obviously has pulled your credit report and knows your financial situation. If he though he had a chance of suing and collecting from you, he already would have filed a lawsuit.
For now, send them a demand to validate the debt and be sure that the amount they are asking for is accurate. Many times they tack on weird fees, interest and collection fees that they can not legally do.
Read my previous responses...make them an offer of 50% of the balance, and with payments that you can afford to make. They will most likely reject it and offer 20%....so haggle with them.
Insist that any agreement must include that they delete any negative information from your credit report. Get all of these agreements in writing before you pay them a dime.
If everything fails, and they do sue you, be aware that many states allow the judge to order installment payments. If you can show the judge you attempted to negotiate and the creditor would not cooperate, that will work in your favor.
I helped someone with a $2000 debt. The collection agent was a total jerk, so it went to court. After showing the judge she tried to work something out but failed, the judge ordered $5 a month payments.
You probably won't get this type of deal but at least it will be in your budget.
2007-07-17 08:02:16 · answer #2 · answered by Anonymous · 1⤊ 0⤋
If the same person calls again, and treats you badly again, ask for their name and/or employee identification number, and inform him or her that you wish to speak to their supervisor. The kind of threatening behaviour you have described is not supposed to be used for "first contact" calls, except in cases where all other means have failed to rouse any repayment attempts.
If they are still abusive, try to find-out what the unpaid depbt is, and whom it is with. Make arrangements to pay THEM directly, thereby cheating the collection agent out of a fee.
The laws on this issue vary from jurisdiction to jurisdiction, so what they can and can not do/say varies.
Incidentally, talk to a lawyer without using specifics...you may have a winnable case for criminal and civil invasion of privacy. If not against the collection agent, the company that provided them with the detailed information. Here in Canada, the only information they are essentially entitled to have are the debtor's name, address, and telephone number and possibly employment information (Company's name, address, and telephone number), plus the same information on any co-signers. Add to that that here in Canada, without a legiitimate Court of Queen's Bench judgement, the company's payroll department can not garnishee pay, lest they be sued by the employee.
Also...again, here in Canada, sending a token $20 payment forstalls any attempt to sue you, as long as you then also make regular periodic payments.
Finally, if you own real property, you can take out a second mortgage for the amount remaining on your current mortgage plus about $10,000. Pay off the debt, and make a couple grand of improvements to the property as well.
Other than that, consult with a good commercial/property lawyer (most will give an initial free consult).
2007-07-17 07:45:31 · answer #3 · answered by jcurrieii 7 · 0⤊ 0⤋
They are breaking the law by threating you. They 1st have to validate the debt before you are required to pay it...this means they have to provide you with statements accounting for every penny of the debt. Next they have to prove they are indeed who they say they are.
Please see this website, it has great info for fighting collectors legally and beating them at their own game:
http://www.creditinfocenter.com/rebuild/
http://www.creditinfocenter.com/rebuild/debt_validation.shtml
http://www.creditinfocenter.com/debt/neg_rating_after_settle.shtml
2007-07-17 07:17:27 · answer #4 · answered by Anonymous · 0⤊ 1⤋
TELL THEM YOU DON'T HAVE THAT KIND OF MONEY AND THEY WILL OFFER YOU A SETTLEMENT AMOUNT TO PAY THEY MIGHT ASK YOU WHAT YOU CAN AFFORD TO PAY I BELIEVE YOU CAN MAKE PAYMENTS ON A SETTLEMENT JUST ASK TELL THEM YOU ARE HAVING HARD TIMES THEY SHOULD UNDERSTAND BUT IF IT'S NOT YOURS TELL THEM YOUR NOT GOING TO PAY AND TO TAKE IT OFF YOUR CREDIT REPORT
2007-07-17 07:32:26 · answer #5 · answered by kitty 6 · 0⤊ 0⤋
If they sue you and win the court may allow for garnishment of your wages.
Typically, they can garnish up to 25% of your wages.
2007-07-17 07:12:26 · answer #6 · answered by mister_galager 5 · 0⤊ 0⤋
Don't pay them till you figure out why you owe them money. If you still have the phone number check it here, http://whocalled.us/
2007-07-17 07:16:53 · answer #7 · answered by lizo0110 3 · 0⤊ 0⤋