I made a BIG mistake talking to CA HELP!

[deesown]

What is the name of your state? CA

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I spoke with Enhanced Recovery Corporation last week about a collection debt I have. The amount I owe is 2,433.00. They said they would be abe to take a settlement payout of 1634.00 in 4 installemnts. At the time I agreed since I do have the money and just wanted them off my back. They also told me I was being recorded.


I did give them my debit card number which they insisted in having to start the payment installments. Well the card number I gave them is inactive. I canceled this card ( guess they will realize when they try and use it next week) when my first payment was to of posted.

Anyhow now I have changed my mind and want to send them a validation letter first before I start paying them.

Am I allowed to do this or am I stuck with the agreement I made over the phone with them last week?

I am so worried because I was being recorded. Can they come back and tell me that if i don't do what we agreed upon that the settlment is off the table and i have to pay the whole amount or and Sue?

[ecmst12]

You didn't get the agreement in writing, so they can sue you for the whole amount even if you DO pay them what you agreed to.

[VeronicaLodge]

Get any settlement amount in writting and don't give them access to your accounts at all. Only send them a check or money order for what you agree to. and DO NOT give them a series of post dated checks, they will cash them all immediately.

[debtcollector`]

Ok .. ecmst12 is right to the point of the OPs breaking the agreement by giving a bogus card number.

Veronica is is just silly. We don't just cash postdated checks immediately. 1. It's not legal and 2) it makes no sense, the debtor doesn't have the money. I can't get paid if there is no money in the account.

Now for the OP: You pretty much blew any negotiating leverage you might have had by giving them a bogus card number. You also don't need validation and renewed the SOL by your promise to pay.

I'd give you one chance to pay BIF by Western Union or Moneygram and turn the account over to legal since you want to play games.

DC

[VeronicaLodge]

DC you may not, but many collection agencies do and it isn't illegal to cash post dated checks, my bank even told me that the date is really for my record keeping, they don't have to look at it.

[debtcollector`]

Originally Posted by VeronicaLodge

DC you may not, but many collection agencies do and it isn't illegal to cash post dated checks, my bank even told me that the date is really for my record keeping, they don't have to look at it.

I don't and I highly doubt any agency does as a matter of practice. There many be individual collectors that cheat, but not agencies as a rule. And it is illegal.

The FDCPA section 808:

§ 808. Unfair practices [15 USC 1692f]

A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.

(2) The acceptance by a debt collector from any person of a check or other payment instrument postdated by more than five days unless such person is notified in writing of the debt collector's intent to deposit such check or instrument not more than ten nor less than three business days prior to such deposit.
...

(4) Depositing or threatening to deposit any postdated check or other postdated payment instrument prior to the date on such check or instrument.

If an agency does that -- you should take action. It is illegal and wrong. Contact a consumer rights attorney.

DC

[ecmst12]

Your bank is right, it's not illegal IN GENERAL to cash a post dated check, but apparently it's illegal for a collection agency to do so because of the FDCPA.