How can debt collection law firms be paid?

[condemnity]

What is the name of your state? PA

Hi,
I enrolled with a debt settlement firm in a moment of haste a few months ago. The firm had me stop paying all of my credit cards. I did as they told me and watched my credit rating plummet over the following months. I quickly realized that this approach wasn't for me, so I cancelled my enrollment with the debt settlement firm. In the meantime, I have received two debt collection letters from different law firms.

The letters state that I owe the full balance of my credit card immediately. It makes no sense to me that they could expect me to pay the full amount, since I couldn't even pay the minimum payment. I really don't want them to sue me, but if I pay the full balance, it will not be for months and I'm afraid that they WILL sue me if I don't pay immediately. So what is the process that I will have to follow in order to pay off the balance? Should I just save and then pay off when I get enough money? If it gets to this point, do they just bring the consumer to court if they can't pay, or does the process really take a lot longer? Since people complain about debt collectors hounding them for periods of time, I assume that it takes years before they'll take you to court. And can I just go back to my credit card company and offer to start paying again or have they cut off all ties with me at this point?

Thanks,
Mike

 

[Ladynred]

The letters state that I owe the full balance of my credit card immediately. It makes no sense to me that they could expect me to pay the full amount, since I couldn't even pay the minimum payment.

That is ALWAYS their first demand, they want it all NOW. They know damn well most people can't do that, but they count on fear and intimidation to scare people into paying. They don't HAVE to accept anything but the full amount, but most will, even though most will say they simply don't accept payments. Their game is to collect as much of the debt as possible and as fast as possible.

I really don't want them to sue me, but if I pay the full balance, it will not be for months and I'm afraid that they WILL sue me if I don't pay immediately.

Don't let their threats of 'pay by xx/xx/xx or else' scare you, that's what they do and their 'deadlines' are usually bogus. When you get near the end of the month, they really turn up the heat because collectors get bonuses for all they collect, so the more they bring in, the more they earn, so some of them get really nasty and cross the line. Most won't sue you that fast anyway, it's not an overnight deal, it takes time.

Whether they will sue or not, and when, is anybody's guess. Discover will sue you for $1 and they don't wait long. Crap1 will sue for amounts even under $100, but it seems to take them a bit longer and Citibank is also fairly aggressive in suing. Some of it depends on how much you owe and what assets you have. The chances are, with the exception of Discover, you probably have a while before anyone sues - if they do at all.

If they do sue, you can always negotiate a settlement to avoid a judgment and you can propose a settlement with the collection agencies. If you make a deal with the devil (CA's) make sure you get everything in writing FIRST, and NEVER give them your banking info. Pay them with cashiers checks or money orders, NO personal checks.

 

[condemnity]

great! Thanks for the info!

Another question, can I try to contact my credit card companies to pay what I'm behind, or do they want me to only go through the debt collector's office?

FYI, the companies that these debt collectors represent are
MBNA and Capital One

 

[Ladynred]

If the accounts have been charged-off, neither MBNA nor Crap1 will even talk to you, they will shunt you off to the collection agency.