How can I deal with a collection agency?

[troubled71]

What is the name of your state? OH
original debt with sears of $5200, debt has been sent to collection agency in OH. i was offered to settle for 3700. couldn't make the payments, certainly cannot come up with 3700. hirassing phone calls everyday now, threatening to sue. I have communicated with them about setting up payments, "not an option" they (collection agency) say.

Now threatening to garnish my wages. I have been advised by someone in the debt relief/consolidation field that they cannot pursue wage garnishment because they are not the original creditor. Is this true? I don't think so. It not my intent to bail out on my debt, my income has recently increased but I think it's too late to resume anything with them monthly. What are my rights? How can I handle this? Can I avoid garnishment? What if I send the collection people a payment? What if I just resume paying Sears? Please, please help. Thanks in advance.

 

[Ladynred]

How long has it been since you last paid Sears ???

hirassing phone calls everyday now, threatening to sue. I have communicated with them about setting up payments, "not an option" they (collection agency) say.

They're full of garbage - they will ALWAYS say they 'can't take payments' - guess what - they can, they just don't want to. They want to collect as much as they can and run with their cut as quickly as possible.

I have been advised by someone in the debt relief/consolidation field that they cannot pursue wage garnishment because they are not the original creditor. Is this true?

They're dead wrong ! Just because they're not the original creditor does NOT mean they can't sue you. If this agency has only been ASSIGNED the debt, then they probably can't, though in some states Assignees do have standing to sue. If the debt was PURCHASED by the collection agency, then they CAN sue you. Most of these debt consolidation/relief people don't know their butt from a hole in the ground.

What are my rights? How can I handle this? Can I avoid garnishment?

Your rights ?? Go read the Fair Debt Collections Practices Act (FDCPA) - those are your rights. The FDCPA is meant to help you deal with collection agencies and their illegal tactics. FDCPA says what they can and can NOT do to collect a debt. Threatening a lawsuit when they cannot or do not intend to do so is a violation of the law.

Can you avoid garnishment - absolutely - pay the bill before you're sued. You can try negotiating a settlement or payment plan, but do it all IN WRITING - forget the phone, its their weapon, so take it out of their hands.