Payment advice..Jetx or Debt Collector!

[apie1]

What is the name of your state? Illinois

My cousin has a medical debt that was dated back in October of 2005 for a little over 500.00 hundred dollars. Obviously it went to a collection agency. She recieved a letter from the collection agency on Saturday regarding the amount and that they are giving her an opporunity to pay it over time which she can work with. She would have paid it but due to her mom being diganosed with parkinsons during that time and her having her own health problems, she couldnt keep up. Her being back on her feet, she will pay the installments now, but she is concerned that if she pays with her checking account, they may take it a further step like getting a judgement against her according to her co-workers. Dont know of her co-workers are right. In the collection letter it seems that it does not seem to be the case but who knows. Would it be okay to pay the installments with a cashiers check or currency exchange check? Any advice would be appreciated, thanks again.

 

[BelizeBreeze]

What is the name of your state? Illinois

My cousin has a medical debt that was dated back in October of 2005 for a little over 500.00 hundred dollars. Obviously it went to a collection agency. She recieved a letter from the collection agency on Saturday regarding the amount and that they are giving her an opporunity to pay it over time which she can work with. She would have paid it but due to her mom being diganosed with parkinsons during that time and her having her own health problems, she couldnt keep up. Her being back on her feet, she will pay the installments now, but she is concerned that if she pays with her checking account, they may take it a further step like getting a judgement against her according to her co-workers. Dont know of her co-workers are right. In the collection letter it seems that it does not seem to be the case but who knows. Would it be okay to pay the installments with a cashiers check or currency exchange check? Any advice would be appreciated, thanks again.

This is a question she needs to ask the collection agency. Unless they have agreed to take ONLY a direct debit from her account It's doubtful that she would be limited to the form of payment she tenders.

 

[moburkes]

What is the name of your state? Illinois

My cousin has a medical debt that was dated back in October of 2005 for a little over 500.00 hundred dollars. Obviously it went to a collection agency. She recieved a letter from the collection agency on Saturday regarding the amount and that they are giving her an opporunity to pay it over time which she can work with. She would have paid it but due to her mom being diganosed with parkinsons during that time and her having her own health problems, she couldnt keep up. Her being back on her feet, she will pay the installments now, but she is concerned that if she pays with her checking account, they may take it a further step like getting a judgement against her according to her co-workers. Dont know of her co-workers are right. In the collection letter it seems that it does not seem to be the case but who knows. Would it be okay to pay the installments with a cashiers check or currency exchange check? Any advice would be appreciated, thanks again.

In order to get a judgment against her, they have to sue her first, and then win. However, if she's making arrangements with them to pay, there is no need to sue her.

 

[apie1]

It only states that a payment needs to be recieved by the date they requested and that they have the right to process a check electronically, whatever that means.

 

[apie1]

She acutally hasnt talked to them, but like the letter stated, as long as she makes a payment by the date they are requesing, then thereafter her monthly payment will be that date.

 

[moburkes]

It only states that a payment needs to be recieved by the date they requested and that they have the right to process a check electronically, whatever that means.

Oh, that just means that she shouldn't mail a check on Monday, expect them to get it by Wednesday, and not expect the payment to be deducted from her bank account until Friday. If they get it by Wednesday, they will electronically collect it IMMEDIATELY from her bank account (as opposed to mailing the paper check to her bank), so the money had better be there on Wednesday, or the check will bounce.

 

[apie1]

Gotcha, thanks for the info, I appreciate it! To bad she could not have paid this a while back, but sometimes you got to let things be in order to take of yourself and others close to you. Thanks again!

 

[IrishNodak]

Just my 2 cents...Years ago, I got a letter from a company and it stated that if I paid xx amount that they would accept that as payment in full. I sent a check for that amount immediately and they then went into my checking account and took the FULL amount owed electronically. Not the amount of the check I sent...the amount that the original debt was.

 

[TigerD]

Just my 2 cents...Years ago, I got a letter from a company and it stated that if I paid xx amount that they would accept that as payment in full. I sent a check for that amount immediately and they then went into my checking account and took the FULL amount owed electronically. Not the amount of the check I sent...the amount that the original debt was.

That is not legal. It is a violation of the FDCPA section 808 unfair practices. I hope you pursued this.

OP--
Just got to a computer...
My new employer does medical collections in Ill. so take this for what it is worth. Mail in payments are strongly discouraged -- they rarely happen with any regularity. I would require the payment to be set up via direct check, which is a postdated check by phone. $500 is the line for many of our clients in regards to suit. So this should be handled carefully, as it could get expensive very quickly.

DC

 

[apie1]

DC, thank you for your prompt reply. So its not a good thing to send it in the mail, but the letter stated that a payment needs to be in by a certain date. The letter does not state how the payment needs to be paid. Curious, I know nowadays anyone can get sued for any amount but you stated there is a line which is about 500.00. Why is that?

Thanks again for your reply!

 

[IrishNodak]

That is not legal. It is a violation of the FDCPA section 808 unfair practices. I hope you pursued this.

DC

It was 10 years ago and unfortunately I didn't know then what I know now. Now we have excellent credit and I've fought a lawyer and won, the IRS and won, and unscrupulous LL's and won.

However, this wasn't a collection agency...does that matter? We bounced a check and one of the check writing agencys(telecheck I believe) sent us a letter. The check was only for $47.00. The letter said they would settle for something like $22.00. I mailed telecheck a check immediately. A week later I had funds for $35.00 come out of our checking account electronically and called the bank. It was telecheck that had taken the remaining amount.

I don't know if it's just our state but we also had a consumer advocate do a show on companies here that cash post dated checks before the date. I know you said that is also in violation. My thought is if people don't know that then some companies get away with it.

 

[TigerD]

DC, thank you for your prompt reply. So its not a good thing to send it in the mail, but the letter stated that a payment needs to be in by a certain date. The letter does not state how the payment needs to be paid. Curious, I know nowadays anyone can get sued for any amount but you stated there is a line which is about 500.00. Why is that?

Thanks again for your reply!

That is the line that some of our clients set. Some clients will sue any amount; some never sue.

DC

 

[apie1]

Thanks your for your reply DC. With everything that has happened with her including her mom, I can understand that she is a litte frighten. She has quiet a few (medical bills only) that have reached debt collections, espically with the same debt collector, so I somewhat understand her by not paying them on time when needed. Family comes first in her eyes as well as mine... I just which she made arrangements prior to distribution of the bills to the agency. I told her if she is going to take the route of mail in payments to be very religious with them. One last question and I'll stop buggin you If you had to pick between the two (not that you would! ) but if you had too, would it be better to send a cashiers check or a check from the currency exchange?

Thank you for your advice!