Discover Charge Off

[Anonymous]

Hi All - 

I defaulted on a Discover card back in 2017.(DOFD Nov, 2017) It was charged off in April of 2018 and sent to collections. The amount owed was roughly $2100.

The collection Agency (McNeile Pappas) sued me for wage garnishment shortly after.  I started voluntarily making $50 a month payments and one $400 lump sum in December of 2020, which they've accepted and I've not had any communications from them except for receipts for the payment.

I just received a letter from them stating that my $50 payment is below the minimum monthly payment amount per my current balance, which they have listed as $1,675 (Discover shows less than $1000) They want me to contact them to discuss bringing my "payments within guidelines" or settlement.  Please note that they have NEVER contacted me about a minimum payment amount.  I don't know if I should contact them or just continue sending my $50 payment.  

Thoughts?

Thank you!

[Remedios]

Hi and welcome to the forums 

If you don't want your wages garnished or bank account lien, you have to contact them since they already have a judgement.

Your balance at the time card became charged off incurred additional fees and fines (nothing sketchy there, it's normal when litigation is involved),hence the difference between charged off amount and current amount. 

When an account is in collections, entire amount is due unless you made arrangements. You didn't make any official arrangements, you picked the amount, and it doesn't look like they want parents to continue for another 3-4 years. 

Due to judgement, they have the upper hand, so contact them and see what they have to say. 

Good luck 

[Anonymous]

Thank you!

[kiea]

You should contact them and see if you can settle the balance for a lower amount.  They may ask you to pay more than $50.00 per month but you may be able to settle it for less than $800.  It is worth a try