Question about Collection account payments

Anonymous · ‎09-17-2007

I owe approximately $3300 to a collection account. I have begun making $150/month payments however they state that isn't good enough. They have had this account for two years in which time I sporadically made payments towards it. They are demanding payment in full now or they are sending it to their attorneys for legal action. The agency said the most they can "finance" me for is 6 months which would be $550/month. They said of course they will continue to accept any payment but unless I agree to the payment plan of at least $550/month or pay it in full it will be handled through the courts. It was my understanding that as long as I was making payments on a regular basis that no court will agree to garnish wages. My husband and my concern is that they send this to court and they garnish my wages. Will they continue with legal action even if payments are being made? I understand they want as much money as possible in the shortest time but that is all we can pay at this point. Thanks for the help!

Anonymous · ‎09-17-2007

Hi shelbym21,

First things first - stop talking to them on the phone - NOW. If you need to deal with them, deal with them through US Mail (CMRRR). Also, make sure that you have copies of your cancelled checks and all written proof that you were paying this CA.

Regarding your question about continuing with legal action even if the payments are being made: The answer, unfortunately, is YES, a CA can sue you if you are not consistent with making payments.

I have a feeling that this CA is one of the "baddies" (an unethical CA). Something doesn't seem right about how this collection agency is dealing with you. I don't like how they're threatening you with legal action and how they won't work with you on a payment plan. I also don't like how they're using the term "finance you" - this sounds like they're trying to trick you into paying illegal fees. Who is the collection agency, by chance?

In all honesty, I think you may be able to sue this CA for violating your rights under the FDCPA.

Anonymous · ‎09-17-2007

The agency is Merchants and Medical Credit in Flint, MI. I assume they are a local (we live in Michigan) agency. I have dealt with two individuals there and they were both very rude and unprofessional including harassing my husband at work even the debt is not in his name and was before we were married. I know they can contact him to verify my contact information but she was threatening him with legal action for my debt. I told her today when she called three times in a row at work (luckily we have caller ID) not to contact us by phone and that I will expect all contact to be through the mail or their attorney. She basically said fine we are done and we will let you go to court then. I guess if they can sue us there is nothing that we can do but continue to make the payments the same time every month and hope that a judge sees that as sufficient and doesn't allow them to garnish my wages.

Anonymous · ‎09-17-2007

Hi shelbym21,

I did a quick check on these yahoos. They've had a few lawsuits filed against them for violation of the FDCPA.

The best defense is a good offense.

The first thing that I would do is report the collection agency to your state attorney general and the FTC for violations of the FDCPA. The violations in question are:

Contact with third parties regarding debt (your husband)
Threatening arrest or legal action
Seeking unjustified amounts (the "finance your payments" deal)

Next, I would find a consumer attorney, preferably one in your area that specializes in debt collection abuse, in your area ASAP. Michigan has additional rules regarding debt collection. Here they are:

http://www.ltclg.com/CM/ArticlesandStudies/MCollPract.pdf

You can find an attorney at this site:

http://www.naca.net

The majority of the attorneys will give you a free consultation. What you want to do is explain that you feel like your rights were violated. Explain that you have been paying the bill (show proof that you have been paying, like cashed checks) but you haven't been paying frequently. Explain the whole situation that you have posted here (you tried to reason with them, they kept threatening to sue you, they refused to work a payment plan with you, etc). You want to also explain that they discussed the debt with your husband when they weren't supposed to (the debt was in your name and incurred before you are married). When you file a complaint with the SAG and the FTC, you want to tell your attorney that you've already done so. The attorney will advise you of the next course of action.