Collection

[crusheroz]

I have a debt that was sent to a collection agency. They want me to sent them 6 posted dated checks, but are unwilling to sent me something in writing that is our agreement. The org. creditor will not talk to me and will not post 160.00 dollars to my account that I have paid them. I have sent proof of the checks (2) that have clearded my bank. I have know idea what to do about this.
Thank you,

 

[gottago]

Never, ever send a collector post-dated checks. They can and will cash them at any time, regardless of what date is on them. If you don't have the money in the bank, you're going to have trouble with your bank.

Send them payments on your own terms. Just write them a check each month and mail it to them.

Make sure you keep track of your payments. When you've paid the bill off, send the collector a certified/return-receipt letter with copies of the payments showing that the balance has been paid. If they continue to collect after that, post here again and we'll go from there...

 

[crusheroz]

Washington State. I decided not to work with this collection agency and I sent them a letter stating this (certified mail, return receipt). The reason I decided not to work with them was (1) the 2 payments I made to them they took for ever to post to the account with the org. creditor and (2) they would not give me something in writing saying that we agreed on monthly payments. I received a letter form them today saying I need to pay or they will take further action. They said I broke my promise to pay, but I never agreed on an amount or date I would pay. I dont know what to do. I mailed out my payment to the org. creditor yesterday. The collection agency did not buy the debt for my creditor. I was behind on the debt by 5 months, and I am now caught up. My regular payment amount is now showing on my statement. Can this collection agency sue me or do anything to me even though they have received my letter? Will the creditor try to sue me even if I am current on my account? The amount I owe is around 600.00 dollars.
Thank you,

 

[JasonRT]

Dear crusheroz,

Yes, the collection agency can continue collection action against you, up to and including litigation. Your credit contract contains an acceleration clause (which means that once you defaulted the full balance was due and owing) they are allowing you to make payments out of the goodness of their heart.

While the collection agency did not purchase the account, they are the assignee and as such you should pay them directly if you want your payments to post on time to your account. They will report on a monthly basis to their client what amounts (if any) you have paid. Your timely payments will prevent future letters and calls from them, but when you pay the original creditor directly you only delay the posting of your payment to the collection agency.

I doubt they will sue you over $600.00. Quit acting like an idiot and make your payments directly to the collection agency and you won't have these problems anymore. All of the problems you have described are a direct result of your decision not work with them.


[email protected]

 

[crusheroz]

I do have the right and choice not to work with these people. Why should I take a chance on them cashing all six post dated checks, and deciding I owe more money to them. All I wanted was something in writing saying that we had agreed to a payment plan and they would not cash the posted dated checks till the dated indicated, and they would not send it to me. I have sent payment to the original creditor and it has posted to my account without any problems. And as far as idiot goes, if protecting myself for bouncing checks and other fees then I guess I am one.

 

[JasonRT]

But you didn't accomplish that. They cannot legally deposit your Post Dated Checks prior to the date on the check pursuant to the Federal Fair Debt Collection Practices Act. In fact, they are required to send you a reminder letter before depositing the check so that you may have the opportunity to contact them and stop them from presenting the check to your bank if funds won't be available. Your representation of the balance of your accoutn in Post Dated Checks would have been your agreement. No collection agency or creditor is going to modify their original contract with you, removing the acceleration clause.

You were trying to be difficult, and you only succeeded in complicating matters for yourself. What you'll probably be shocked to find next is that the collection agency will report this matter to your credit as an unpaid collection item because you haven't been making your payments as you are supposed to.

And the credit card company has the right to assign your debt to whomever they wish. Contrary to your belief, you do NOT have the right to choose who they assign your account to or modify that assignment in any way.


[email protected]

 

[JETX]

Sorry, but JasonRT is wrong again.

He said, "Yes, the collection agency can continue collection action against you, up to and including litigation."
Truth: Most states, including Washington, prohibit a party who is NOT the creditor (as in the 3rd party collection firm) from filing any legal action. They are just a collection 'agent' working for the original creditor and as such, have no standing in court.

He said, "While the collection agency did not purchase the account, they are the assignee and as such you should pay them directly if you want your payments to post on time to your account."
Truth: Wrong. Send your payment to the original creditor. They MUST accept it.. but not if you put any 'contingencies' on it (like 'restrictive endorsements').

He said, "They cannot legally deposit your Post Dated Checks prior to the date on the check pursuant to the Federal Fair Debt Collection Practices Act. In fact, they are required to send you a reminder letter before depositing the check so that you may have the opportunity to contact them and stop them from presenting the check to your bank if funds won't be available.."
Truth: There is NOTHING in the FDCPA that prohibits a collector from depositing a post-dated check. In fact, any post-dated check can be cashed at any time (per the UCC, Section 4-401 says that the financial institution can pay a postdated check and not be held liable unless the customer gives reasonable notice of the post-dating to the bank."
http://www.law.cornell.edu/ucc/4/4-401.html

He said, "And the credit card company has the right to assign your debt to whomever they wish."
Fact: This is almost correct... except that the creditor doesn't 'assign' the debt to the collector. They enter into a 'collection contract' which stipulates that the firm can attempt to collect the debt and gets to keep a percentage of the 'recovery' (usually about 30 to 45%) and must send the rest to the creditor.

 

[JasonRT]

Here we go with Halkidiot again. This poor schlep is so misinformed it's laughable.

He said, "Yes, the collection agency can continue collection action against you, up to and including litigation."
Truth: Most states, including Washington, prohibit a party who is NOT the creditor (as in the 3rd party collection firm) from filing any legal action. They are just a collection 'agent' working for the original creditor and as such, have no standing in court.

You are incorrect, there is nothing prohibiting the assignee of any debt against filing a lawsuit to protect their interest in the assignment. If you have the law, post the law.

He said, "While the collection agency did not purchase the account, they are the assignee and as such you should pay them directly if you want your payments to post on time to your account."
Truth: Wrong. Send your payment to the original creditor. They MUST accept it.. but not if you put any 'contingencies' on it (like 'restrictive endorsements').

The original creditor is NOT required to accept your payment once they have assigned the account to a third party. In fact, upon receiving your payment they must remit evidence of that payment and any fees associated therewith to the collection agency. You are only delaying matters by sending payments to the original creditor. Sounds like Halket's been reading up on collection matters on bbauer's website.

He said, "They cannot legally deposit your Post Dated Checks prior to the date on the check pursuant to the Federal Fair Debt Collection Practices Act. In fact, they are required to send you a reminder letter before depositing the check so that you may have the opportunity to contact them and stop them from presenting the check to your bank if funds won't be available.."
Truth: There is NOTHING in the FDCPA that prohibits a collector from depositing a post-dated check. In fact, any post-dated check can be cashed at any time (per the UCC, Section 4-401 says that the financial institution can pay a postdated check and not be held liable unless the customer gives reasonable notice of the post-dating to the bank."
http://www.law.cornell.edu/ucc/4/4-401.html

You must be drunk tonight Halket. This is a big screw up for you. I refer you to Section 808 of the FDCPA "Unfair Practices": The following is a violation of that section2) 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

So it appears as though the FDCPA DOES prohibit the early deposit of a post-dated check and DOES require notification. Lay off the Jack before you post buddy.

He said, "And the credit card company has the right to assign your debt to whomever they wish."
Fact: This is almost correct... except that the creditor doesn't 'assign' the debt to the collector. They enter into a 'collection contract' which stipulates that the firm can attempt to collect the debt and gets to keep a percentage of the 'recovery' (usually about 30 to 45%) and must send the rest to the creditor.

You are wrong here too, all collection agreements call for the assignment of the debt to the collection agency. This is protective measure agencies take over their fees.

Again, you are sadly confused and just flat wrong. Go re-read the FDCPA and come back here when you have some real information to offer.

[email protected]

 

[JETX]

Looks like I am eating some crow on this one.

You said, "You are incorrect, there is nothing prohibiting the assignee of any debt against filing a lawsuit to protect their interest in the assignment. If you have the law, post the law."
Wrong again, partly. A '3rd party debt collector' is NOT an 'assignee' of the debt. That would require transfer of ownership. He is an independent contracted 'agent' of the creditor. However, if you will re-read my post, I said "Most states, including Washington, prohibit a party who is NOT the creditor". Though most states DO bar an assignee from filing, Washington DOES allow it BUT ONLY if the creditor has allowed it.
"RCW 4.08.080
Action on assigned choses in action.

Any assignee or assignees of any judgment, bond, specialty, book account, or other chose in action, for the payment of money, by assignment in writing, signed by the person authorized to
make the same, may, by virtue of such assignment, sue and maintain an action or actions in his or
her name, against the obligor or obligors, debtor or debtors, named in such judgment, bond,
specialty, book account, or other chose in action, notwithstanding the assignor may have an
interest in the thing assigned: PROVIDED, That any debtor may plead in defense as many defenses,
counterclaims and offsets, whether they be such as have heretofore been denominated legal or
equitable, or both, if held by him against the original owner, against the debt assigned, save
that no counterclaim or offset shall be pleaded against negotiable paper assigned before due, and
where the holder thereof has purchased the same in good faith and for value, and is the owner of
all interest therein."
So, I call this one a draw.

As for the post-dated check and the FDCPA, you get this one. In my initial response to your post, I was blinded by your incorrect statement regarding the validity of post-dated checks, and overlooked the more restrictive requirement of the FDCPA. Your point.

Finally, your statement (my emphasis), "You are wrong here too, all collection agreements call for the assignment of the debt to the collection agency. This is protective measure agencies take over their fees."
Show me. Though I have not read ALL of them, most that I have seen are simple 'collection agreements' that transfer no ownership or control.

 

[JasonRT]

Halket,

I E-mailed you five different collection agreements (company names redacted). Please verify their receipt. All of those agreements create an assignment of the collection accounts. I cannot post them here because of their length.

Please E-mail me back any collection agreements you have which do not create an assignment. I'd be interested in who would use such an agreement.


[email protected]

 

[crusheroz]

My creditor said they would except my payments. I am not being difficult, I just dont trust collection agencies. If I have no right in sending them a letter than why does the FDCPA say that I can. And not every collection agency out there goes by the law. I am not going to have them cash 6 post dated checks on me. All they are out to do is collect the money. I never agreed to pay them. They told me the amount I needed to pay and that I needed to send in 6 post dated checks. And I asked for something in writing to verify the amount owed, the payments and that they wont cash the checks till the date noted on the checks. They said no, we can not promise you that in writing. So translation, we are going to screw you over. I was not asking them to modify anything just put what they were saying to me in writing.

 

[gottago]

Interesting thread.

For the benefit of everyone else, DO NOT send anyone post dated checks, regardless of what the law or the creditor/collector says.

I guarantee you that there are sleazy collectors out there who will cash those checks at any time they think they can get the money (they just keep calling your bank to check on funds in your account). Is it illegal? It depends. Does the law stop them from doing it? Not a chance. There's no way you're going to get anyone in law enforcement to pay attention to a matter like this.

Collectors are very good at intimidating debtors. They will tell you anything to get you to pay. Ignore them, learn the law and pay your debts off as soon as possible, preferably directly to the original creditor.

 

[JETX]

Crusher, I agree with you... you just can't trust these bottom-feeding, scum-sucking 'debt collectors'. In every case of a 3rd party 'collector', you are best to send your payment directly to the original creditor and let them sort out the payment issue. They could return it to you, but you can then argue that they have refused to accept payment (it that might help you if needed later).

I also agree with Gottago.... do NOT send anyone a post-dated check. Once they receive it, they WILL deposit it!! If all (or even some) of the debt collectors out there would comply with the FDCPA, you might have some reason to count on it to protect you, but there are far more sleazy 'debt collectors' that violate the FDCPA than abide by it. So, don't rely on some 'promise' ("Honest, we wouldn't do that to you.... just send us a few of your signed checks!!"). Protect yourself by telling them.... NO!

 

[JETX]

BTW, JasonRot.... haven't received your promised e-mails. Are you sure you sent them??? (I know, you have probably been pretty busy lately calling those deadbeat debtors from your 'collection agent' office!!)

Or, if you still can't find them.... just send me a few post-dated checks..... honest, I won't cash them!!!

 

[JasonRT]

I'll resend the E-mail to you Halket. For someone in the debt collection business you sure have a low opinion of those in it. How does it feel to hate yourself?


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