Collection Problem

we disenrolled with a consumer credit counseling company after a few years when we found that we only had two bill left to pay and the company was sending payments late and we were being charged finance charges. Well when we disenrolled the company made the final payment to both of the last two bill that was left.

A few days after recieving a statement showing that a payment had been made, we recieved a letter from a collection agency saying that we were sent to collection by one of the two credit card companies that was left to be paid and the amount left to be paid was $550.00. Well, I call the collection agency and explained to them the situation, and that I could make monthly payments to them for the balance. I was told that "No, I cannot make monthly payments and that I had to satisfy the debt within 45 days or they would pursue a different avenue to collect the debt.

So, I asked what did they suggest I do, and I was put on hold and talked to a manager who told me that I could split the payment in half or he could make me a deal but, by no means was i going to pay monthly until the debt was paid in full.

I am considering paying $75 to $85 per month until the bill is paid in full. Am I being unreasonable?

What is my legal right in this situation?

What I am going to tell you is the best way for you to do deal with this situation. You go ahead and pay it off in full and make sure you get documentation this company was sending payments late. You go to the Better Business Bureau, the FTC and the Department of Consumer Affairs, lodge complaints and get your money back.

If all else fails,

[url]www.attorneypages.com[/url] and sue for fraud/embezzlement

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I am a law school graduate. What I offer is mere information, not to be construed as forming an attorney client relationship.

[JETX]

Originally posted by BIGWILL

I am considering paying $75 to $85 per month until the bill is paid in full. Am I being unreasonable?

What is my legal right in this situation?

Regretably, other than a right to accuracy and proper 'treatment' as provided by the FCRA (Fair Credit Reporting Act) and the FDCPA (Fair Debt Collections Practices Act) you really don't have ANY right to make a reduced payment. To read these rights, click on [url]http://www.ftc.gov/[/url]

How much you owe and the terms of payment are determined by your contract with the original creditor. The original creditor has every right to demand that you make payments in accordance with your original agreement. Unless the creditor has agreed to specific payment terms, you have no right to a payment plan to fit your convenience.

As a practical matter, however, all any creditor wants is to be paid. If you really cannot afford to pay as much as they request, contact the ORIGINAL creditor if possible. Tell them that you want to pay your outstanding debt, but can only pay at $XX per month until paid. I am sure that they will accept any REASONABLE payment that you can make.