Talking with creditors

iVillage Member
Registered: 10-29-2003
Talking with creditors
9
Thu, 09-22-2005 - 11:32am

Ok, I need to call a few creditors and stop some payments---some of these have been already stopped, and doubled up-----My hubby needs a root canal and crown---$1000 at least---so we HAVE to skip some things.

These are not directly to creditors, they are to collection agencies. They will threaten to not allow payments anymore, to 'advise' their clients that we are 'refusing' to pay and have them sue us, yada yada yada.

This is temporary---I want to pay them, and so forth, I just need a break for a month (sometimes 2, depending on if the creditor has already postponed a prior pmt and doubled up the one this month.....)

How do I handle their aggressive tactics, and how can I try to keep them from suing us? Any suggestions? We are NOT refusing to pay, just need a temporary stay...........I can't promise when I'll get it 'caught up, but I can promise when payments will resume.

iVillage Member
Registered: 09-07-2005
Thu, 09-22-2005 - 12:38pm
I know it is hard to talk to collection agencies, but your best bet is to have an open line of communication with them. This will show that you are trying to work with them instead of against them. Explain your situation and try to send them something even it is $10 or $20 dollars. They will want to know when you will be able to resume payments to them. Please do not promise them anything that you cannot afford because then it will just make it harder. I have dealt with a few collection agencies and they try to "threaten and scare using words like sue" because they just want money. Do not be afraid and be truthful with them. I have had collection agencies try to set up payment arangements with me and I told them that they would have to lower the monthly payment because I could not afford what they were offering me. They didn't like my answer and said that they were going to sue and tell there customer. I sent in a monthly payment anyways and they cashed my check and took it off the balance. I have never heard of an agency refusing payment. As long as you are trying that should show some effort to them. Hope this helps.
iVillage Member
Registered: 10-29-2003
Tue, 09-27-2005 - 4:24pm
Well, 1 worked with me 2 refused. I am so frustrated, scared and have no idea where to go. I get so intimidated by these people. I hate myself for caving.
Shels
iVillage Member
Registered: 11-19-2004
Tue, 09-27-2005 - 6:45pm

DO NOT feel anything negative about yourself because of these people!!!

Their job is to BE nasty, mean and intimidating....all to get your money!! (They make commissions off how much they bring in, hence their motivation).

I dealt with creeps like that for almost eight years until I filed Chp 7 BK earlier this year. At first, I would be up ALL NIGHT cryinig and stressed out. They called me at home, at work, called my supervisor, my neighbors, and engaged in ALL sorts of illegal tactics.

Finally, I figured out "the game".

#1. Do you have the agencies names and addresses, and your account numbers with them? If not, get them. (BY LAW, they HAVE to give you the info when you ask.)

Send them a CERTIFIED MAIL, RETURN RECIEPT letter (about $3.50, make sure to get the return reciept; it will be your proof they got it) stating that you are exercising your right under the Fair Debt Collection Practices Act of 1977 not to be contacted about the debt via phone. You only wish to be contacted through the mail, and any phone calls to you or your spouse (whether at home, work, etc) MUST CEASE IMMEDIATELY or you will file a complaint with the FTC (which regulates most collection agencies).

Not having creditors constantly call you is a big stress reliever. You eliminate the chance of them being verbally abusive to you and lying, etc. to get money.

#2. In the same letter, state that currently, you are only able to afford to send a payment of $10.00 in. Enclose a MONEY ORDER (no checks!!! They will clean your accounts out!!!) for $10.00. Keep the top stub from the money order for your records.

State that in the future, you will send in a bigger payment when you are able to. DO NOT make any promises as to a specific amount. Just say "I will continue to send in monthly payments towards the debt, in an amount I am able to afford. The payments will be sent around the ___ of the month". (Pick a date that works for you.).

#3. By law, a collection agency can't refuse a payment. If they do, whatever. Send it directly to the creditor and ask them to credit your account.

#4. KEEP RECORDS. A copy of the letter, stub from the money order, and return reciepts. IN CASE YOU NEED IT (probably won't, but anyway) you can prove you at least TRIED to pay them.

#5. Lawsuit. I had $50k of debt when I filed Chp 7 BK. Single, never been married, no kids. Mostly medical bills, but also some cc and personal loans. THE ONLY company that sued me was Citibank, for a Visa I owed $6000 on. But FOR MONTHS before the suit was filed (about year actually) they tried to work out a payment plan with me. I couldn't do it. So when the suit was filed, I filed BK and it was halted, and discharged. But I knew that lawsuit was coming WEEKS before it was filed. They meant business, and weren't "threatening" like the collection agencies.

Collection agencies lie. They are mean. They try to scare you. DON'T LET THEM.

If they call you, just say "I sent you a certified letter. You can't call me anymore" and hang up. Don't engage them in a conversation or they will start to abuse you and they like to "push your buttons".

If some agency was going to file a lawsuit against you, they would have to pay for an attorney to go to your home state and file a suit in your local court, and they don't have that kind of money. And even if they DID file a suit, you could file Chp 7 BK and have it discharged, and/or fight it in court. It is NOT the end of the world, I promise you.

YOU ARE A STRONG, INTELLIGENT WOMAN and DO NOT let these losers at a collection agency upset you so badly. OK? If you want to email me through my profile for info, etc. PLEASE feel free.

Here's a couple of websites with some info for you:

http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm

http://credit.about.com/cs/consumeraction/a/062201.htm

http://www.nolo.com/resource.cfm/catID/462A9501-9B21-4E09-A08C5A7B8AF51A79/213/161/

Hope this helps. TAKE CARE.

KN

iVillage Member
Registered: 05-09-2005
Tue, 09-27-2005 - 9:03pm
Hi,
Have you tried talking to the dental office? Usually they are really good about setting up a payment plan -- you might be better off trying to figure out a way to pay them gradually instead of all at once which seems to be the problem right now. Usually they don't charge much interest, if they charge any at all. It's worth a try. Good luck!
Megan
iVillage Member
Registered: 03-07-2005
Wed, 09-28-2005 - 12:16pm
Talking to the dental office was going to be my suggestion. They probably will work with you on a payment plan since $1000 is alot to cough up at once, they know this. I don't think you are in an unusual circumstance by not having it all at once--they see it all the time--call them first. GL
iVillage Member
Registered: 09-12-2005
Wed, 09-28-2005 - 3:52pm

Thanks for posting that! I'm reading it and thinking about going home tonight and getting some letters prepared.

I appreciate it.

Sarah

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iVillage Member
Registered: 10-29-2003
Wed, 09-28-2005 - 4:26pm
I already know from experience, that is a no go----the endodontist takes NO PAYMENTS and the dental office recently changed dentists, and said all money is due at the time of service. No exceptions.
iVillage Member
Registered: 03-07-2005
Fri, 09-30-2005 - 7:00pm

all money is due at the time of service

Sorry that really sucks. I know the feeling though.

iVillage Member
Registered: 08-24-2004
Mon, 10-03-2005 - 12:14pm
For the root canal, can you get the work done at a dental school? It might be worth going to one if there is any within driving distance. the students arein their last levels of training and are supervised by the professors. I got my wisdom teeth taken out at one, and it cost me a fraction of the cost (2 pulled, 2 impacted, general anestheia, plus prescription). They did a great job. Maybe you could even haggle the price if need be (they often do philanthropy, so maybe they could cut you a deal?)