I am in AZ and I am trying to pay a collection agency $20.00 per month because that is what I can afford and they are telling me they can not work with me on that amount even though they took the original $20.00 I sent them. Are they allowed to do that? They are threatening me with legal action.
2007-09-10 07:13:29 · 11 answers · asked by havasufem 3 in Business & Finance ➔ Credit
They told me over the phone they would not work with me on that amount.
2007-09-10 07:20:39 · update #1
1st - everything needs to be done in writing. If you have a n arrangement over the phone, when you hang up it never happened.
Collection agencies are supposed to work with you. If this is the arrangement that was agreed to in writing, you're ok. If they refusing partial payments, I would contact their client (the person who turned you over to them to begin with) in writing, and explain your partial payments are not being accepted. Certify copy the collectors in this letter.
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2007-09-10 07:23:35 · answer #1 · answered by twowords 6 · 0⤊ 1⤋
How much do you owe? If it's a large sum, $20 is an unreasonable payment plan.
The collection agency does not have to work with your or agree to accept payments. If you are in collections, that means you have already defaulted on the original terms of your agreement with the original creditor. Since you are in default, all the money is due.
Going back to the original creditor may not do you any good. Chances are the debt was sold and you have to deal with the collection agency as they own the debt.
You can continue to send you $20 payments but that won't stop them from calling and demanding more or taking you to court, where they will get a judgment, attach your bank accounts or lein your property or garnish your wages -- up to 25%.
2007-09-10 08:35:53 · answer #2 · answered by bdancer222 7 · 1⤊ 0⤋
There are two things working here: the collection agency is charged with collecting a debt that you owe. They would love you to write them a check for the whole amount, but they probably only paid a fraction of what the amount is (if it is an outside agency).
If you can truly only pay $20/month, keep sending it in. They will cash the checks. Don't give them electronic access to anything though, or they will drain the account. And if you take them to court, the judge will ask, "Do you owe the money?" Your answer, "Yes." Even if they claim they will only take out $20/month.
2007-09-10 07:21:37 · answer #3 · answered by dsmoya31410 2 · 0⤊ 0⤋
Of course. You have to convince them that you really cannot pay more than $25. Otherwise, why would they make such an arrangement with you. Most collection agencies wont take payments. They want the entire amount or they sue you. Of course they can refuse your payment if it is not sufficient. All they are asking is that you prove your financial situation. They are being very lenient with you.
2016-05-21 05:36:49 · answer #4 · answered by ? 3 · 0⤊ 0⤋
Usually a collection agency wont refuse a payment. What they will do is try to get you to pay a certain amount. If they try to take legal action all you have to do is keep all payment info and show that you are making an attempt to pay off the debt. Usually when they say they will take legal action it's just a stunt to get you to pay off the debt faster. Think about it your debt is probaly a lot less then the cost of an attorney and court cost.
2007-09-10 07:24:54 · answer #5 · answered by Dee D 1 · 0⤊ 0⤋
They cannot refuse to let you pay all that you owe. However, you say that you cannot afford to do this.
They do not have to let you pay only $20 per month unless they or the creditor or a bankruptcy court agreed to let you do so. Otherwise, everyone could borrow thousands more than they could afford to pay and then pay $20 or whatever amount they could afford.
2007-09-10 07:21:06 · answer #6 · answered by StephenWeinstein 7 · 1⤊ 1⤋
they cant do anything.....all they can do is garness your check, and then your employer will ask you how much to take out, just say $20...............call them and say take it or leave it....the only way a collection agency can harm you is through the credit reporting act, i recently applied for government job and they said i had to take care of the collection agency on my credit report before the could hire me... ....
2007-09-14 04:33:25 · answer #7 · answered by derek m 2 · 0⤊ 0⤋
ya they can refuse your payments because 20 bucks is nothing a month.
YOu sent them money willing, so of course that is legal!!!
They will keep calling to collect
2007-09-13 13:39:01 · answer #8 · answered by Mom to one cute boy! 6 · 0⤊ 0⤋
do your self a favor and any further transaction you make with the collection do it in writing send them a cretified letter with your payment and your plan to pay them .If they refuse at least you have proof in writing you tried.
2007-09-10 07:21:23 · answer #9 · answered by Crazy cat lady >^ ^< 4 · 1⤊ 1⤋
They dont have to accept it. You have to make the min. payment. if you dont you have defaulted and they can take you to court to get the whole thing.
Now, if you send the money more than likely they will take it
2007-09-10 08:28:55 · answer #10 · answered by heybulldog 5 · 0⤊ 1⤋