Collection Agency | Debt Prison

Posts Tagged ‘ collection agency ’

Collection Agency Demands “Lump Sum”

By Debt Prison on November 11, 2008

**Disclaimer – Debtprison.net does not administer legal or financial advice. The contents of this website are my opinions on collection agencies and how to deal with them. Nothing on this website should be interpreted as legal advice or council. No opinions on this website should be used to replace the advice of your financial advisor or your legal council.

A reader asked for advice in response to a collection agency demanding a lump sum and refusing to accept a payment plan..

Hi Barry,

I have a question for you regarding a collection agency. I have a credit card account with Bank of America, which just went 6 months past due. I have been unemployed and now have a job. I’ve been working with Bank of America through a payment program, but they recently sold the debt to an outside agency. I just received a call from this outside agency stating they are willing to settle for $7,000.00, but they want it in full by tomorrow (which can’t happen). I attempted to ask them if I can be placed on a payment program until I am willing to pay the balance in full in June 2009. I attempted to be proactive and make payments, but they will not accept. The man on the phone was extremely rude, stated they do not accept payment programs, and are planning on taking legal action. Any advice? Thanks so much-

Debt Prison response..

Tell them they can settle for oh say… $300 bucks or they can take you to court and have the judge put you on such a payment plan. There’s nothing these guys can do in court but get a judgment, in which case, if you pay some on it each month there’s nothing they can do. These collectors know this and are betting on your ignorance of this matter… they are counting on you coming up with the $7,000 cash. You’d be surprised just how many get stressed out and cough up the cash. These guys can really get your blood boiling. Unless you plan on paying the $7,000 I’d just write them a letter… let’s see what we can come up with here….

Write a letter (registered) and say that you can pay $500 a month (or whatever you can pay)… and that you are attempting to satisfy this debt but they are making it impossible by demanding a lump sum. Tell them that when they are ready to put a payment plan IN WRITING that you’ll be happy to discuss the matter with them further, and until then to leave you alone… If they would like to start acting like adults you’ll be glad to work with them.

I’d then keep copies of the letter and the receipts from the post office showing where they signed for it. I’d also mention in the letter that if they decide to take this to court that you’ll be showing this letter to the judge..

Good Luck and hope this helps..

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Collection Agency Revives a Dormant Judgment – What should I do?

By Debt Prison on November 6, 2008

I recently received the following question from a reader in response to a collection agency reviving a dormant judgment.

Hey Barry,

I just received a motion from a collection agency to revive a dormant judgment. They are seeking $7,000 and 10% interest. I have never even heard of the agency. They sent the court documents to the wrong address and used my maiden name. The court hearing is Nov. 21th. What advice do you have?

Jane

Hey Jane,

Sorry to hear about this. It sounds like you are saying you had a debt many years ago that went to court. The court ruled in favor of your creditor and gave a judgment declaring that you owe the money and need to pay it. Maybe you didn’t pay it, some time has elapsed, and now a new collection agency is trying to collect on the judgment. Am I right so far?

I don’t know if a judgment expires. And I don’t know if the statute of limitations applies or not in this case (because of the judgment). Either way I would first try and call the courthouse and talk with a clerk or judge. You want to appear extremely cooperative and sorry that you haven’t satisfied the judgment. Also, you could ask the court if a payment plan can be worked out between you and the collection agency.

Also, this collection agency probably owns the legal rights to the debt… However, you need to make sure that the collection agency is legit and that you actually have to pay THEM. For example, was $7,000 the amount of the old judgment… or is this the first time you’ve heard of the $7,000?

I would go to court and defend myself against the collection agency either way. I would explain that you haven’t satisfied this old judgment because of certain reasons .. x,y, and z. And I would explain to the judge that you have the $7,000 to satisfy this debt right now or you don’t. If you don’t then you need to ask nicely about a payment plan or something along those lines that can fit into your monthly budget.

But mainly, be nice and cooperative. Courts don’t look kindly on people who ignore judgments. Keep that in mind as you handle this matter.