More Info from crazzynannie?

Question

I am paying my 35.00 monthly. "Still" . I have the original collection notice of our agreement dated 4/07. It is the standard form offering me 3 options. I chose the hardship plan where I written in the $35.00 monthly amount and sent it back. I have the original copy of this agreement. . This account has only been with the C/A for 4 months of which I have paid this exact amount. I want to thank everyone for your answers. I am going to look into a bankruptcy as I can't do it all financially. I will continue paying...In looking at my credit debt; I owe appx. $3500.00. And believe it or not...ive paid off some of my debt. I went from a full time job to a part time job. Big Sigh. Thank you all for listening and your advice.

Answer 1

As long as the agreement does not contain anything in it that gives the CA the right to change the terms at any time they want - then they "do not" have that right as long as you are making the agreed payments at the agreed times.

If that is not in the agreement, they legally cannot harass you, they legally cannot try to change the amount you are paying, they legally cannot change the time of the month you are required to pay and they legally cannot sue you - unless you quit paying.

If they had contacted you in writing to try to change the amount, etc., then you have proof of their violation.
If it was verbally, then it would be hard to prove. Unless you taped the conversations, which in your state, you do not need their permission to tape. If they told you that they were taping, you have the right to subpoena that tape (if it ever comes to that)

You should order your credit reports, if you have not recently.
Look for any violations that they are reporting (they usually do violate in their reporting)

You have the right to request validation at any time, though if it is past the first 30 days that they first contacted you, they do not have to respond. But, in the validation request you can include a "limited" C&D which will legally keep them from calling you but they will still be able to write to you.
If they call after receiving it, they would be in violation if they try to collect in any calls.
Forcing them to correspond in writing protects you. Should they commit any violations you will have it in writing.

I've included a short sample validation letter:

Your name
Address
City, State, zip

CA name
CA address

Date

Re: Acct #xxxxxxxx

Greetings,

This letter is being sent to you in response to your recent communication.
This is not a refusal to pay, but a notice that your claim is disputed.
This is a request for validation made pursuant to the Fair Debt Collection Practices Act
I am requesting, in writing, that no telephone contact be made by your offices to my home or place of business.
All future communications with me must be done in writing and sent by USPS to the address noted in this letter.



Send the letter certified mail return receipt requested
When you get the green card back, pick one or two violations they are reporting on your credit reports and dispute them with the CRA's. Send the disputes certified mail. (not return receipt)

You should also file complaints against the CA with the FTC, your AG and the CA's AG.

There are many different ways to handle this. It all depends on what "you" want to, and can, do.
You could continue to pay until the debt is paid off. (and hope the CA stays in line)
You could quit paying, but if you do, they would probably sue. (though you could file counterclaims on them if you have documented violations)
You could create a solid papertrail of their violations and sue them. Which you could win, you could lose. They may back down and request that you drop the suit if they stop collections on the account. They could let the suit continue, if you win (depending on how many violations you have on them) they may owe "you" more than you are paying "them". If you lose you would have to pay court costs.
You could go ahead and file bankruptcy, though filing for only $3500 isn't the wisest unless you have other things that you would be including in it. (yes I realize $3500 is a great deal of money, though not in BK standards)

I still recommend that you do some reading on the credit discussion boards that were mentioned in your other question. I usually don't go to CIC much, but I know it is a good site. The one that I prefer is creditboards.com/forums (affectionately known as CB)

Both sites are totally free. Those that help others do so on their own time, much like those of us on here.
CB has zero tolerance of any spammers (I don't go to CIC that much to be able to say the same for them)
Both sites have a ton of info on them. Along with the credit forum on CB (where you can freely ask questions) CB also has a bankruptcy forum, where a person can learn what it takes to file, what to normally expect and freely ask any questions they may have.