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Debt Collection Agency in NY Advice (Forster and Garbus)

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PabloV
Valued Member

Debt Collection Agency in NY Advice (Forster and Garbus)

Hello everyone, let me start out by stating the first part of my issue...I've had a payment plan agreement with a collection agency for over a year now.  Just recently as of two months, I've asked them for the current balance and they have NOT responded to any of my request.  I know for a fact that they have received my letters because Ive sent them enclosed with the monthly payment.  

 

To me it seems as if they are not subtracting my $50 monthly payment from the total balance, and instead subtracting a lesser amount with the rest going to interest, this was never agreed.

 

Now, yesterday I made an attempt to call Forster and Garbus.  Spoke with them over the phone and let me start off by saying Forster and Garbus has unprofessional staff.  Now, just as I suspected they are indeed collecting interest from my monthly payments without ever letting me know.  They claim this is standard NY procedure in which they can charge 9%.  From my understanding it needs to be included in the original loan agreement.  Also they state that they are on behalf of capital one which leads me to believe that they do not own the account, yet are charging interest?  Is that even possible?  I told them that they never validated the debt and the collector stated that they will send something.  I replied that I will send them a validation request, in which he rudely interrupted me and said "no", lets not waste time, "ill send you..."  

 

At this point, I have already sent a letter asking for verification, etc.

 

Problem is that I have a current payment plan, should I stop paying now? Or continue while the validation process proceeds?

 

Now my last question is, all the monthly payments are done with my son's checking account.  If I were to stop payment, can they go into my son's account (even though he has nothing to do with this) and garnish any money?  Thanks in advance for any help.

 

Pablo


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3 REPLIES 3
guiness56
Epic Contributor

Re: Debt Collection Agency in NY Advice (Forster and Garbus)

They cannot garnish wages without first having a judgment against you.  Once that happened they could submit a writ of garnishment that you would know about well before it happened.

 

No, do not stop paying them.  That may lead to a law suit against you.  Not sure if NY statues allow for SOL to be restarted with payment.

 

Even if they are only assigned the debt they can charge interest if the agreement with the OC allows it and your state allows it.

 

If the balance reporting on your CR does not include the interest also, this is inaccurate reporting.

 

I would contact the OC and ask if you can pay them directly and have them recall the debt from the CA and remove it from your CR.  Sometimes the OC will be upset if the CA they hired is not doing it as they should.  If they say no, then I would directly dispute with the CA.

Message 2 of 4
PabloV
Valued Member

Re: Debt Collection Agency in NY Advice (Forster and Garbus)

Thanks for the reply and info.  At this point if I call Capital 1 which is the Original Creditor and still owns the account. & I offer to pay them in full in exchange for removal on my CR.  Lets assume they agree, what exactly happens with the debt collector (F&G)?  Are they also required to remove their derogatory item on my CR since both Captital 1 and F&G are reporting it to my credit?  Thanks


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Message 3 of 4
guiness56
Epic Contributor

Re: Debt Collection Agency in NY Advice (Forster and Garbus)

Not just by paying the OC.  If the OC was to recall the debt then they would have to remove.  They would no longer have collection authority.

 

Now, I have seen others pay the OC and have the OC ask the CA to delete.

Message 4 of 4
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