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Sumons, harasment and payment arrangements, oh my!

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M

MrsC

Guest
I live in Illinois.
Due to a series of illnesses and an car accident, paying on our credit cards has been sporadic at best.
A couple of weeks ago, my husband sat down and paid on each CC as much as we could. I'm not talking about 10 bucks...but $300.00 on each one. As it turns out, the same week we were served with two summons. One we were able to pay off, and the other we called to see if we could make arrangements. (They had called earlier in the week asking about a payment, and I gave them the check number and amount of payment. They said, "thank you" and hung up---so why are they calling again?) Their arrangements included four postdated checks (keep in mind we had already paid 300.00) the first being within 15 days. My other option (I was told) was to make a settlment, then pay a lesser amount monthly--again check over the phone. It was a 75% settlement? Anything over that would be classified as earned income I would have to claim on my taxes?
I'm confused here....
I told them that we are trying to make good on our debts. I can't afford the payments they want (nearly 500.00). I guess it's too late to pay what I can on the debts?
Thanks in advance, and I'm sorry if this has been asked to death.
 


JETX

Senior Member
I really don't see any questions in your post, but will offer the following general comments.

"One we were able to pay off, and the other we called to see if we could make arrangements. (They had called earlier in the week asking about a payment, and I gave them the check number and amount of payment. They said, "thank you" and hung up---so why are they calling again?) Their arrangements included four postdated checks (keep in mind we had already paid 300.00) the first being within 15 days. My other option (I was told) was to make a settlment, then pay a lesser amount monthly--again check over the phone. It was a 75% settlement? Anything over that would be classified as earned income I would have to claim on my taxes?"

It is not clear from the above whether this is in fact the original creditor or a 3rd party collector contacting you. If a 3rd party, then their contact is limited by the FDCPA (Fair Debt Collection Practices Act), which can be found at http://www.ftc.gov/.
Read the FDCPA because (if a 3rd party), then what they are telling you about postdated checks is a violation; "(2) 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."

Further, there statement of a 75% limit of negotation is simply ludicrous. Though there is a provision for a creditor to report 'foregiven' money (using a 1099-c form), it is ONLY available to specific parties.... and not creditors and debt collectors. Negotiate to your hearts content.... 40% or so would be good.
 
M

MrsC

Guest
Let me clarify...

Last week, I got a call from Bank of *******, asking--where's the payment? I stated the check number and the amount of $300.00 and what date it had been mailed out. "OK" the person says.

Today, I get a call again from another person from Bank of ******. He says he wants to make payment arrangements--check over phone for 4 months. I ask him what happened to the money that was sent. He said it posted, but was too late and it was sent to him in *recovery*. He also said to act on this quickly because at any time, this could be taken out of his hands.

I asked for this to be made in writing--he said he didn't have to.

Does what he said sound right to you?

Also..on another credit card....
I got a call, similar to the above mentioned one. The same thing happned--we had already sent $300. She said that wasn't good enough--she wanted check over the phone payments. Two days later I got a summons for an amount different than what she said we owed. THEN yesterday--I got a letter that said they accepted the $300 and agreed to accept 300 per month until it was paid off--in 4 months.

Any thoughts?

Thanks so much for your time--I know it's valuable.
 

JETX

Senior Member
Since I have no idea of your payment history on this account, I really can't respond as to their contacting you, but it really doesn't sound terribly unusual.

However, I would give a warning.... do NOT give your bank information (phone check) to ANYONE. Send them a money order for payment. There is just too much chance for errors when you give them the keys to your bank account!!
 

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