Collection Agreement

What is the name of your state? WA


I have $2200 in cc debt (on a 1k card of which I used $200) and have had my account sent to a lawyer's office for collection.

I have always paid my cc payments on time and in full. Unfortunately 3 years ago my husband's business dipped and we became severely behind in all our debts including this cc. When things improved I set up a payment agreement with the company and paid as much as I could, even getting my card almost paid. This past year my husband lost his business and we fell even further behind than before. Things have since improved a bit after a lot of hard work, but we are still a month behind in our rent and several months behind in our utilities. As soon as I had a spare dime I called the cc company and began paying again, but they had put me into their legal department and didn't like the $50/month I was sending so they sent my account to a lawyer's office. All this was explained to the lawyer's agent but they still sent the agreement to pay $100/month to be signed and notarized. I don't want to put myself in such a dangerous position given the shakiness of my financial situation. I have sent the lawyer $50 the week I spoke to them (this month). I should also mention that the money I have been sending the cc company and now the lawyer is my asthma medication money and I am now in a real need of that medicine (especially with this stress) which I also told the agent as well as the fact that I really do want to repay this debt.

Must I sign this agreement they sent me? Can I send my own agreement to pay a minimum of $50/month and then as much as I am able over that amount until the debt is paid?

I just want to know where I stand within my rights before I call the lawyer's office.

Thanks for your time.

[Ladynred]

NO ! You do NOT have to sign that agreement ! Take care of yourself, FIRST ! In the overall scheme of things when you're trying to survive troubles, YOU come first, then your home and basic living expenses.. credit card payments are LAST on the list. Please don't give up your needed meds to pay a rotten collection agency.

If the account has not been charged-off (after 6 months of non-payment), then this 'attorney' is nothing more than a collection agency. They use the 'lawyer' trick to make people think its more serious than it may be and because a letter from a 'lawyer' scares people.

There is absolutly nothing stopping you from sending in your OWN payment arrangement for what YOU can afford. Do it. It may be rejected, but so what ? You keep sending what you can anyway. $2200 is a very small amount, really. As long as you keep paying, it at least shows a good faith effort.

Take care of yourself and your family - the CA is the dog under the table begging for table scraps - just don't let him take your dinner!

Thank you so much for your feedback. I feel a bit more in control now.

One more question. The debt has been charged off, unfortunately, so does that change anything you said? This is truly a lawyer's office as I have received their agreement on stationary.

[Ladynred]

Well, it changes things a little bit, but maybe not a whole lot.

Believe it or not, this lawyer could very well still just be a collector. Unless the creditor is Discover, its very unlikely you'll be sued over this small amount of debt. Its more likely just a lot of sword rattling and intimidation to scare you. Collector's ALWAYS assume you can pay more than what you've got because they believe ALL debtors are just plain deadbeats.

Draw up your own payment agreement and send it to him. Send it certified, RRR, so you have a paper trail established.

Just remember - credit card bills come LAST when its survival time. I have asthma myself, and there's no way I'd give up meds and choke to death just to pay a CA !