Collection agency question? URGENT!?

Question

all right

let me try to explain

i had this credit card account which i wasn't making any payments to because i had no work , etc

so i called the creditor and made a settlement into payments plans, i sent one installment only then stopped because i was waiting for my house to be sold , so that i could pay it in full.

now the house has not been sold due to some problems the buyer had and my account is ridiculously late and i called the creditor they said the account had been sold to a collection agency.

i called the agency and they said it sent to another agency, called The offices of LERS (have u heard of it)?

they are very mean and nasty and demand that i pay in full or else they'll take me court.

what should i do?

i thought they should accept payments.

Answer 1

Not much you can do. You had an agreement and these places are not family....they expect their money back on time like you agreed to.

At this point your credit is probably so bad you might as well file for bankruptcy.

Otherwise be prepared to go to court. Sorry but you got yourself into this mess.

Answer 2

well how much is it.. court cost for them are probably going to be more than the actual amount so tell them to back off.

Don't let them run you.  also look up the fair reporting act.  there are certain things they can and can not do.  if they violate those you could be free of all cost.

Answer 3

Arghh mate, you defaulted on your payment plan - that was your second chance! Ok,,,,,all is not lost. What you need to do is send a payment via registered mail in the form of a money order only to these LERS folks. They'll always say they want the whole thing....they're collectors that's what they do!

Believe me they'll take the money order...that's an acceptance of payment....so they have no choice but to keep taking your payments....if they're really serious they'll return the money order (not gonna happen) and sue you instead (pray this doesn't happen)

Answer 4

It is there choice to either accept the payments or not.  Once you stopped honoring your payment plan with the original creditor, and they SOLD your debt to somebody else, you have to start all over again.

Yes of course they are more interested in $$ rather than going to court, but a lot will depend on the payment plan.  IF you have a very high balance and with your payments it's going to take more than 12 months to pay off the debt they would most likely not be interesting in floating you that long.

Answer 5

Tell them to go ahead and take you to court. Chances are they won't, or even if they do the judge will have them set up some type of payment plan then. And you can always pay that off in full once you sell the house. Maybe by the time the court case comes around the house will sell.

Alot of the CC companies, lawyers/collections just tell you they will take you to court to scare you.

I am having problems myself financially right now, and one did take me to court, they are now getting a small monthly payment, the other I never hear from anymore. And I had no court costs.

Answer 6

And your fear of going to court is what? They can get a judgment. Hope it can be delayed until after your house closes or a lien against your house will require to pay off in full before title can be passed to the new owners.

  The new debt owners are assignees of your old account. They may have paid 5 cents on the dollar for your debt as part of a large packaged  amount of debts. They are free to make their own deal. If they know you a) Own Real Estate and b) Are in the process of selling that real estate they will have hit the motherlode and hope for full repayment.  

    Sell the property....spend your profit....claim poverty and you will be in a position again to deal on a better basis.

   GOOD LUCK

Answer 7

first they are a collection agency and will say whatever it takes for you to pay. They are going to be mean, nasty and give you very bad scenarios. All these are designed to make you pay and put the fear in you that you are so so screwed and instead of paying for your food you need to pay them first.

Not the case. Depending on the amount you owe the cost of them pursuing a lawsuit is highly unlikely. Additionally if you have intentions of making payments eventually or better yet paying the whole thing off then no worries ! !

BUT DO NOT TELL THEM THIS.

if you intend to pay the whole thing off make it sound like you might be able to find some way to come up with $5000 instead of the $10000 that you owe and you will be able to send them the whole amount if they take that as full payment.

At this point this LERS company has bought your debt for pennies on the dollar and your old Credit Card company has already written off the debt and sold it. So if you originally owed $10k LERS might have a note for only $3500 for it instead so they are much more willing to accept a much lower amount to settle everything.

Answer 8

You had a payment plan and you didn't live up to your end of the bargain.   They don't have to negotiate with you, you owe them money.