3rd Party Collector

[christina]

What is the name of your state?What is the name of your state?new york city ,new york
hi ,
my name is christina and i'm recently divorced i have a lot of debt so i joined a consumer credit counseling service which i have no problem with.
i recieved a call from a 3rd party collector for sears stating a breach of contract was filed against me and i have 90 days to make full payment or they would garnish my paycheck ,freeze my bank account and any other action till debt is paid.
i have not recieved any legal document regarding breach of contract.
i currently pay via counseling service 135.00 a month and i am up to date and current.
my balance has gone down from 6,200.00 to 5,400.00.
i missed one payment in july 05 and due to this sears reinstated interest and dropped me from program even though i continue to make monthly payments.
i have been in consumer credit counseling since feburary 2005.
my counseling service is currently attempting to reinstate me with sears if they accept.
1. how can i stop 3rd party collector from garnishing paycheck, freezing bank account or any other action?
2. can 3RD PARTY collector refuse to deal with credit counseling service?
3. can 3rd party collector refuse to accept a payment plan offered by me ?
SPEED IS OF THE ESSENCE PLEASE REPLY FAST !!!!! NEED HELP BEFORE FUTHER ACTION TAKEN****************************.....

 

[Leinalani]

1. how can i stop 3rd party collector from garnishing paycheck, freezing bank account or any other action?
2. can 3RD PARTY collector refuse to deal with credit counseling service?
3. can 3rd party collector refuse to accept a payment plan offered by me ?
SPEED IS OF THE ESSENCE PLEASE REPLY FAST !!!!! NEED HELP BEFORE FUTHER ACTION TAKEN****************************.....

Answers:

1. Pay what you owe.

2. Yes.

3. Yes.

 

[zippysgoddess]

...and they are not required to accept any plan whatsoever from the agency you are working with.

 

[floscalzo]

floscalzo

As a general proposition, if you owe someone money and you do not pay them, they can sue you and get a judgment. Once they have a judgment, then can garnish your wages, and put a restraining order on your bank account. Only the owner of the claim can sue you, and if they are a corporation or business entity they will need an attorney to do so. Once you have defaulted on a debt there is no obligation on their part to enter into a payment arrangement. Although it is usually smarter if they do.

A collection agency as opposed to the owner of the claim, tries to collect on debts that someone else owns. They cannot sue you, and you can sue them if they so threaten. In addition, you can send them a letter commonly called a cease & desist letter, asking them to stop contacting you and in theory they will. Any time you send a letter to someone, always remember to keep a copy.

 

[Debt Guy]

Sending a cease and desist letter can be very dangerous if the debt is still within the statute of limitations -- you run the strong risk of triggering a lawsuit.

 

[Ladynred]

i recieved a call from a 3rd party collector for sears stating a breach of contract was filed against me and i have 90 days to make full payment or they would garnish my paycheck ,freeze my bank account and any other action till debt is paid.

A COLLECTOR told you this and you BELIEVE them ? That's your first mistake, collectors LIE ! Their tactic is to scare you into paying and that's what this sounds like if you've not been served a summons. You can always double -check this by calling the courthouse and ASKING if any suits have been filed against you. If not -then you know what the jerk from the collection agency told you was a LIE.

NO collection agency can do anything to garnish your pay or sieze your bank account WITHOUT suing you and winning a judgment FIRST. Threatening legal action ( garnishment etc) that they cannot take or do not INTEND to take is a violation of the FDCPA (Fair Debt Collection Practices Act), I suggest you read the Act and learn your rights and their limitations.