conflict w/account rep & turned over to legal

[lar_]

I have an account with a collection agency set up to pay $40/month. I called rep to inquire as to whether or not i could skip Sept. payment or pay half. Told her I would figure something out and send regular amount. As I was hanging up the phone she heard me say something that wasn't intended for her to hear (I called her a name). When I called the next day she informed me she had turned me over to legal due the pretty little name she heard me call her and I now had 30 days to pay. Talked to gm of collection agency and of course he was extremely rude and threatening as was the legal rep. I have been informed by them that the employee was incorrect and made a mistake in setting up such a low payment amount and I must send $100 per month, pay balance or go to court. Everything with my account was fine until she heard me say what I said. Can they do this?

 

[Michael Wechsler]

My understanding is that you owe the debt and they have agreed to allow you to pay less over time in the hope of recouping the rest. I don't see why they wouldn't have a right to take you to court immediately for non-payment. While many are upset that a creditor keeps calling them for money, do understand that you are not the wronged party -- the party that is now out of pocket is the aggreived party. You are not in a good position and best to deal with people who can help you kindly.

Do note also that unless you have a written contract that specifies certain agreements, e.g. waiver of interest, there may be issues of interest accruing and to which you may be liable as well.

Good luck with this and I hope things work out for you.

I have an account with a collection agency set up to pay $40/month. I called rep to inquire as to whether or not i could skip Sept. payment or pay half. Told her I would figure something out and send regular amount. As I was hanging up the phone she heard me say something that wasn't intended for her to hear (I called her a name). When I called the next day she informed me she had turned me over to legal due the pretty little name she heard me call her and I now had 30 days to pay. Talked to gm of collection agency and of course he was extremely rude and threatening as was the legal rep. I have been informed by them that the employee was incorrect and made a mistake in setting up such a low payment amount and I must send $100 per month, pay balance or go to court. Everything with my account was fine until she heard me say what I said. Can they do this?

 

[lar_]

My understanding is that you owe the debt and they have agreed to allow you to pay less over time in the hope of recouping the rest. I don't see why they wouldn't have a right to take you to court immediately for non-payment. While many are upset that a creditor keeps calling them for money, do understand that you are not the wronged party -- the party that is now out of pocket is the aggreived party. You are not in a good position and best to deal with people who can help you kindly.

Do note also that unless you have a written contract that specifies certain agreements, e.g. waiver of interest, there may be issues of interest accruing and to which you may be liable as well.

Good luck with this and I hope things work out for you.

My point is I haven't missed a payment. I simply inquired about it. They have never had to call me for money I responded promptly to their letter and immediately set up arrangements.

 

[Michael Wechsler]

My point is I haven't missed a payment. I simply inquired about it. They have never had to call me for money I responded promptly to their letter and immediately set up arrangements.

I understood your point but the "arrangement" doesn't mean you had a right. If you owe someone $500 due yesterday, simply because they say they will allow you to pay back $50 a month and not go to court for the time being doesn't mean that now they are stuck with that deal -- unless there was some reason why this would be considered a new contract with consideration, an exchange of value from each side. Here there is no benefit for the creditor of extending your loan except not really having much of a choice. This is my understanding of the agreement without other formality.

 

[lar_]

I understood your point but the "arrangement" doesn't mean you had a right. If you owe someone $500 due yesterday, simply because they say they will allow you to pay back $50 a month and not go to court for the time being doesn't mean that now they are stuck with that deal -- unless there was some reason why this would be considered a new contract with consideration, an exchange of value from each side. Here there is no benefit for the creditor of extending your loan except not really having much of a choice. This is my understanding of the agreement without other formality.

I see. The bottom line is I do owe the money. Thanks!

 

[Michael Wechsler]

I see. The bottom line is I do owe the money. Thanks!

Yes... but see what you can do to get back to square one. Apologize, be courteous, and make them realize they won't get blood from a stone and it pays to continue the good relationship... not everything is pure law but also successful negotiation.