How can I deal with a debt collector when I am totally broke?

[SamRocks2525]

What is the name of your state (only U.S. law)? Pennsylvania.

I (stupidly) allowed a friend to use my eBay/PayPal account to sell items to raise money for rent. He received the $, but never shipped the merchandise. I contacted PayPal right after this happened and filed a civil suit against him to collect the money PayPal returned to the buyers. Now a collection agency is calling me to collect. Here are some the questions/demands the collector made today:

• He asked me what I do for a living, my total annual income and my husband’s income
• He asked me to list all of my debts and my husband’s debts.
• Told me to extend my mortgage, college loan or car payment.
• Call your mom or dad and ask them for the money
• Have your husband call his parents and ask for the money
• I offered to make monthly payments as a sign of good faith until paid in full (hopefully which would be soon if I win my lawsuit). He told me that making monthly payments was not a sign of good faith and the only a payment for the entire amount would be good enough.
• Told me that since I am home for the summer (I am a teacher) that there is no reason why I cannot make a few calls to get money to payoff the entire amount.
• Said if I do not pay the entire amount by July 15 that they would take the next steps against me, but he could not (or would not) tell me what those would be.

So what should I do? Also, are his questions normal protocol for a debt colloctor?

[HomeGuru]

Originally Posted by SamRocks2525

What is the name of your state (only U.S. law)? Pennsylvania.

I (stupidly) allowed a friend to use my eBay/PayPal account to sell items to raise money for rent. He received the $, but never shipped the merchandise. I contacted PayPal right after this happened and filed a civil suit against him to collect the money PayPal returned to the buyers. Now a collection agency is calling me to collect. Here are some the questions/demands the collector made today:

• He asked me what I do for a living, my total annual income and my husband’s income
• He asked me to list all of my debts and my husband’s debts.
• Told me to extend my mortgage, college loan or car payment.
• Call your mom or dad and ask them for the money
• Have your husband call his parents and ask for the money
• I offered to make monthly payments as a sign of good faith until paid in full (hopefully which would be soon if I win my lawsuit). He told me that making monthly payments was not a sign of good faith and the only a payment for the entire amount would be good enough.
• Told me that since I am home for the summer (I am a teacher) that there is no reason why I cannot make a few calls to get money to payoff the entire amount.
• Said if I do not pay the entire amount by July 15 that they would take the next steps against me, but he could not (or would not) tell me what those would be.

So what should I do? Also, are his questions normal protocol for a debt colloctor?

**A: you are not obligated to even talk to the collector.

[SamRocks2525]

Thank you for the quick response.

What do I tell them when they call? How should I handle the debt obligation?

[HomeGuru]

Originally Posted by SamRocks2525

Thank you for the quick response.

What do I tell them when they call?

**A: don't talk to them. Send only written correspondence.

###########

How should I handle the debt obligation?

**A: write back with a proposed payment plan.
Also read the FDCPA and understand it.

[debtcollector`]

1. Collectors always ask for the balance in full.
2. Collectors always promise further action or account review or such. It is intended to make you think of the worst possible situation and then pay to avoid it. Usually further action means, they will call again. Sometimes it can mean they will sue.
3. Collectors always ask you to do what you need to do to get the money. Call somebody, sell your couch, sell plasma - it's the same thing.
4. Read the sticky on negotiation.
5. Practice.

DC

[cosine]

Originally Posted by debtcollector`

2. Collectors always promise further action or account review or such. It is intended to make you think of the worst possible situation and then pay to avoid it. Usually further action means, they will call again. Sometimes it can mean they will sue.

I've also found that it can mean they may sell the debt to another collector (if they own it), or return the debt to the original creditor (which might well place it with another collector or sell it). You never know until they do it.