[Bill Collector]

I currently owe money to Wolpoff and Abramson. I have 2 accounts that were placed with their firm. The 2 accounts total approx 5500.00. I recently called them up and offered them 3000.00 to settle. During that conversation, I requested that they stop calling my home and call my cell phone instead. The agreed to this. that same night they called (and I spoke to them) 2 more times. This is a violation of FDCPA is it not? On top of that, they stated during that conversation that they could settle both accounts for 3640.00. Last night, I spoke to them again and they are now claiming that the least they can settle for is over 4200.00 (and are threatening my with arbitration (which W&A does pursue quite a bit). They changed the ammount after they found out I was a bill collector. This seems like an unfair practice to me, but I wanted to get an attorney's opinion on this. I can either settle the 2 accounts I have there or I can settle 5-6 other accounts I owe on. What exactly happens if they pursue arbitration? Any ideas on what I should do about this?

[aaron]

During that conversation, I requested that they stop calling my home and call my cell phone instead. The agreed to this. that same night they called (and I spoke to them) 2 more times. This is a violation of FDCPA is it not?

You can review the full text of the FDCPA here. It restricts where they can call you, but beyond that doesn't appear to be violated if they don't observe your preference as to how they call you within the Act's confines.

On top of that, they stated during that conversation that they could settle both accounts for 3640.00. Last night, I spoke to them again and they are now claiming that the least they can settle for is over 4200.00 (and are threatening my with arbitration (which W&A does pursue quite a bit). They changed the ammount after they found out I was a bill collector. This seems like an unfair practice to me, but I wanted to get an attorney's opinion on this.

How did they find out that you are a bill collector?

I can either settle the 2 accounts I have there or I can settle 5-6 other accounts I owe on. What exactly happens if they pursue arbitration? Any ideas on what I should do about this?

If you go through arbitration, the validity of the debt would be determined by an arbitrator. They would then likely seek to have the arbitration award entered by a court as a court order, then seek judicial remedies to collect the debt within the confines of state law.

[Bill Collector]

They requested my employment info and I felt no need to lie to them.

So basically, the debt will be declared valid (because it is) and they can automatically push for a lien on my property or a garnishment of my wages? Can I decline arbitration?

[aaron]

I believe that their technique is to force arbitration based upon the "mandatory arbitration" clauses in many credit contracts. If they are enforcing such a clause, they schedule an arbitration, and you fail to appear, it is all-but-inevitable that they will get the arbiter to rule in their favor. At that point they will take the arbitration decision to a judge for entry as a judgment, and you would be in the position of trying to dispute its validity.

Assuming that there is a mandatory arbitration clause, you can check with a consumer lawyer in your state to see if there are any court rulings which would render an arbitration clause unenforceable, given the facts and circumstances of your case and language of your credit contract.

Their post-judgment remedies would vary by state. Some states, for example, don't permit wage garnishments. The normal paths toward collection are garnishment (wages, bank accounts, other liquid assets) and execution (seizure and sale of items of personal property, and possibly real property).