Collection Agency
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Collection Agency
| Thu, 03-09-2006 - 8:26pm |
I was wondering if anyone could share with me "how" the collection agencies work?? I have a credit card that I have fallen very far behind on, the collection agency is now calling me and want me to give them $1700 this month and then $900 next month and $900 the following month! And the debt would be totally gone. Well that sounds great but here is my thing, if I couldn't make the minimum payments, how in the world do they think that I can make these. Well I guess I could if I didn't make the house payment and eat! Can I continue to pay the credit card company directly? They told me to refinance or take out a second mortgage and pay it off. In my opinion that is just transferring the debt. I have never had to deal with a collection agency before and I'm wondering if they will try to sue me for this money that is owed. Any advise or suggestions!! Thanks!!

I'm so sorry your having to deal with collection agency. They make a difficult time even more difficult.
Well, first of all I definatly would NOT agree to pay what they are saying or refinance. That is ridiculous..there ridiculous!!!! Is this a collection agency or is this the credit card company itself calling? If it's a collection company than really they have no way to MAKE you pay a minimium amount. If this the credit card company, they MAY sue you but it's pretty unlikely. It's usually just a threat. I would call and let them know how much you can pay and see what they say. What ever you do, do not agree to pay a dime more than you think you would be capable of paying.
Hopefully, someone else will chime in here and give better advice.
Good luck,
Cristin
Thanks!
Yeah, I think you should call them and talk to them. Collection comapanies can be somewhat abusive, so it's always a good idea to call them, then to have them call you, that way your a little bit more in control. It's a good idea to know EXACTLY what your capable of doing and sticking to it. They may reject it and write you off but it's better to do what you can. I would check to see if this is the credit card companies in house collection department, if not, then it means that they have already charged you off.
Good Luck,
Cristin
You will have to deal with whomever has your debt. If it has been sold to a collection agnency then you will have to deal with them, which means that you will have a write off on your account. It's my understanding that a collection agency can not sue you for the amount, only an original creditor but you'll have to check on that. If it is a collection agency they can't MAKE you pay a certain amount. If you were working with the credit card company you would need too if you wanted to get it into good standing. It sounds like it's too late though. There is a really good website that you can ask debt questions, they have been VERY helpful to me in the past, and would be able to answer your questions better. If your interested you can email me at momofjacknsara at yahoo dot com
Good Luck,
Cristin
I think it depends on who you end up talking to at the collection agency. Some are a little nicer and willing to work with you, and some not so much. In my opinion, you attract a lot more bees with honey if you know what I mean but some people are hardened and unwilling to work with you. Try calling the collection agency and tell them you would like to set up a monthly payment plan and tell them the amount you can pay. Explain your situation (why you have been uable to make payments...maybe a loss of job or unusual amount of medical expenses). Just don't give them some ridiculous number like $10 per month on a $5,000 balance.
I have a friend that was recently sent to collections for a cell phone bill and the first person she spoke with was very nice and willing to work with her. She called back and got a real jerk on the line. Good luck!
Mocha
Mocha
Hello,
I would suggest that you ask the collection agency for their address and write to them, stating that you do not owe a debt and requiring proof of the debt before they contact you again. Yes, you already know that the debt is valid, but it will force them to stop calling you until they provide proof of the debt. When you recieve proof of the debt amount, check to make sure it is the same as the original debt from your creditor.
I found information about your rights under the Fair Debt Collection Practices Act:
Source:
http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm
What information about a debt must a debt collector provide to you?
Within five days after you are first contacted, the collector must send you a written notice stating the amount of the debt; the name of the creditor to whom the debt is owed; and explaining how to dispute the debt.
May a debt collector continue to contact you if you believe you do not owe money?
A collector may not contact you if, within 30 days after you receive the written notice, you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.
You might also be interested in this article from Bankrate.com:
10 ways to fight back against a debt collector:
http://www.bankrate.com/brm/news/cc/20030519a2.asp
Sincerely,
Lindsey Schocke
Sincerely,
Lindsey Schocke
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