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  1. #1
    mrmattson is offline Junior Member
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    Unhappy Debt went to Collections, Won't let me do payments.

    What is the name of your state? California

    So I made a mistake, I had my dad get me a loan for a computer a few years ago. I received a letter from Creditors Interchange, stating that my debt has been purchased by Truelogic Financial Corp. I called Creditors Interchange and made my intentions clear that I want to make payments on my $2950. He says that Truelogic is a group of attorneys and they are going to sue me if I don't pay within 48 hours. He gives me a settlement offer of $2515. He says, "I see you have a Wells Fargo Master Card, we could transfer the balance over to that" (my dad's credit card). He says they are going to get me for over $4800 if I don't pay within 48 hours. I asked if there was no way that I could make $400-500 a month payments? He replies no. Well, did some research and found Truelogic, I called them, they are another collection agency. So, is this BS, or do I really have to pay the $2500 within 48 hours face the $4800 if I don't? Forever thankful!
  2. #2
    BelizeBreeze is offline Senior Member
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    Actually, you don't HAVE to do anything. But then, they are under no obligation to offer you payments either.

    So, you decide what you want to do, pay your debts or not.
  3. #3
    mrmattson is offline Junior Member
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    So, I called back and they let me do $200 a month. What the hell?
  4. #4
    ecmst12 is online now Senior Member
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    Collection agencies are sneaky and use all kinds of nasty scare tactics to get you to pay your bills. Deep down they know you are probably not going to be able to pay the whole amount up front and they know they're better off taking payments. But they also know if they threaten you FIRST, then you might respond to the threat and beg/borrow/steal to pay the settlement amount and then the account is paid, closed, and they're happy. Even if only one person in 100 is able to pay the full settlement amount after the first threat, that's still one more account they can close out. And a lot of the others will be so relieved on the second call when they agree to a payment plan that they'll forget all about how they were threatened.

    But it's not illegal.
  5. #5
    debtcollector` is offline Senior Member
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    Quote Originally Posted by ecmst12
    Collection agencies are sneaky and use all kinds of nasty scare tactics to get you to pay your bills. Deep down they know you are probably not going to be able to pay the whole amount up front and they know they're better off taking payments. But they also know if they threaten you FIRST, then you might respond to the threat and beg/borrow/steal to pay the settlement amount and then the account is paid, closed, and they're happy. Even if only one person in 100 is able to pay the full settlement amount after the first threat, that's still one more account they can close out. And a lot of the others will be so relieved on the second call when they agree to a payment plan that they'll forget all about how they were threatened.

    But it's not illegal.
    Actually, yes it is. It is a violation of the FDCPA to threaten, that is to say a CA is going to do something that it has no intent of doing.

    However, in the first post, the OP pointed to a rather serious FDCPA violation. It is a violation to use the threat of selling an account against the consumer. As a debt collector, I cannot say, "Joe Debtor, if you don't pay within 48 hours I am going to sell your account to a an attorney that will sue you." That is a violation.

    A much grayer area is: "Joe Debtor, you ask what is going to happen if you don't pay. Honestly, I don't know. Your account is slatedto be sold if it is not paid or under a payment plan. I can't say what the next agency will do, I imagine they will use every legal means they have at their disposal from a simple letter and call, which is what we have done and hasn't seemed to motivate you to pay your debt, up to possible legal action. I just can't say -- it is completely up to them. This call is your last chance to work out a payment plan with me. So let's set up something that helps us both out. ..."

    While the above example is in the gray area, I think it is in the darker shade of gray. *But it works.*

    As for asking for balance in full, I'd take a collector off the phones that didn't demand balance in full on the first call. You always get everything you can upfront -- most debtors wouldn't be in collections if they could follow through on monthly payments.

    DC
  6. #6
    ecmst12 is online now Senior Member
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    I was mainly talking about the demand for payment in full "or else we will sue you" not being illegal.

    But I'm confused about the rest. OP said that the first agency told him that his debt had ALREADY been sold. But of course if that was true, then they wouldn't be able to accept payments, right?
  7. #7
    debtcollector` is offline Senior Member
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    Quote Originally Posted by ecmst12
    I was mainly talking about the demand for payment in full "or else we will sue you" not being illegal.
    I understand. Actually that is unless the agency intends to sue. Threatening an action that the agency can't legally take or doesn't intend to take is a violation of the FDCPA. That said, it isn't a violation if the agency is going to sue.

    Quote Originally Posted by ecmst12
    But I'm confused about the rest. OP said that the first agency told him that his debt had ALREADY been sold. But of course if that was true, then they wouldn't be able to accept payments, right?
    Correct. If they had already sold the debt, they would not have the right to collect on it. And be doing so, they would be stealing from the entity they sold the debt to. However, as long as the debtor gets a receipt, it isn't his problem.
  8. #8
    Ladynred is offline Senior Member
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    Truelogic is a group of attorneys and they are going to sue me if I don't pay within 48 hours.
    That bogus 'deadline' is a ration of horse manure ! It's nothing but a pressure/scare tactic and as DC pointed out, it's a violation of the law. Creditors Interchange are nasty and they break the law as a matter of course, but they are gutless wonders. If you demand validation, they will drop you like a hot potato and sell the debt rather than deal with proving the debt is valid.

    Just don't let them intimidate you and if you didn't get that $200/mo 'payment plan' in writing, expect more calls in a couple of months saying that the payment isn't enough and they want more.. now.
  9. #9
    mrmattson is offline Junior Member
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    Unhappy

    Quote Originally Posted by Ladynred
    That bogus 'deadline' is a ration of horse manure ! It's nothing but a pressure/scare tactic and as DC pointed out, it's a violation of the law. Creditors Interchange are nasty and they break the law as a matter of course, but they are gutless wonders. If you demand validation, they will drop you like a hot potato and sell the debt rather than deal with proving the debt is valid.

    Just don't let them intimidate you and if you didn't get that $200/mo 'payment plan' in writing, expect more calls in a couple of months saying that the payment isn't enough and they want more.. now.
    Okay, so the payment plan worked out is $50 on Friday, 10% due on 4/28 ($295), and then $200 every month on the 28th. So, I should call back and ask for this is writing? So basically they are acting as a collecting agent for Trulogic? I don't want to pay this thing only to have Trulogic come back and say they never received anything.
  10. #10
    Chien is offline Senior Member
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    Get the payment plan in writing, keep copies of all payments and try to get a commitment in the payment plan that you'll get written confirmation of full payment, when the plan is completed. Cover all bases.

    LNR is telling you to DO IT IN WRITING.
  11. #11
    Ladynred is offline Senior Member
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    TrueLogic Financial Corp is a junk debt buyer:

    Ty Coffelt, Vice President
    Greenwood Village, CO 80111-1634
    Fax: (303) 265-9544
    [url]www.TrueLogicFinancial.com[/url]

    They bought your debt and farmed it out to Creditors Interchange to attemp to collect on it.

    I did a search on their "management team" names - not a single one of them is a lawyer, so, no big surprise, CI LIED !!
  12. #12
    mrmattson is offline Junior Member
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    Lightbulb

    So, since my original Loan was through MBNA, did they get the full amount I owed them from Turelogic? Or did they buy it at a discount? Or does MBNA only collect after the Truelogic/Creditors Interchane collects? I'm new at this.
  13. #13
    Ladynred is offline Senior Member
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    TrueLogic BOUGHT your debt, whether it was directly from MBNA there's no way to know, but charged-off debts are bought for pennies on the dollar so they paid very little for your account. Their huge profits come when they get full payment on the original amount -- so if you had a 2500 debt they MIGHT have paid 200 for it .. if that. The older the debt, the less they pay to buy the paper.

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