Question about a collection agency
Posted 26 February 2013 - 07:04 AM
Posted 07 March 2013 - 11:55 PM
But first things first. Charge-off does not mean that you do not owe the debt. Its just an accounting term - it means the original creditor has given up getting money and the account has moved to the bad debt side of the ledger.
Second, you do not "ask" anyone for verification. You request it IN WRITING. The Fair Debt Collection Practices Act requires this to be in writing.
Third, your idea of paying by money order would be sound, but you do not dictate the terms. As I said, payment plans are never a good option and I cannot see a good reason why a debtor would ever do them unless the debtor has a lot of assets that would be at risk if judgment were entered and/or does not want his/her wages garnished.
What you need to do really is sit down with an attorney and find out your options. How much is owed? How much is "small" for a down payment? Would it be possible to settle in a lump sum for a smaller amount now? If you do not have the funds, how long would it take to get them? What are the ramifications of not paying today? Do you know what the effects of a judgment in your state would be? This is why you need to consult with a lawyer.
All collection agencies have an address. I have never heard of a collection agency refusing money before for properly negotiated accounts. You first begin by requesting a letter outlining the proposed payment terms - as in "I will pay x $ down followed by 12 monthly payments of y $ until the settlement amount is paid." The letter then describes where payment is sent and by what dates the payments are to be received. Usually there is a reference number for the file which you write on your check or money order so I do not understand how a collection agency cannot track a payment if you reference a file number on the memo line.
Edited by FindLaw_AHK, 08 March 2013 - 07:59 AM.
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Posted 08 March 2013 - 01:19 AM
As I said, payment plans are never a good option and I cannot see a good reason why a debtor would ever do them unless the debtor has a lot of assets that would be at risk if judgment were entered and/or does not want his/her wages garnished.
I disagree that payment plans are “never a good option.” Payment plans are certainly a good option in some cases — you yourself mention two of them. But those two circumstances are not the only ones in which is makes sense to do it. A lot depends on the nature of the debt, the debtor's situation, what repayment terms the creditor is willing to accept, and the applicable state law.
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