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What Can Collection Agencies Legally Do to Collect Debts

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  • 06-14-2017, 07:25 AM
    kennethwilder1
    What Can Collection Agencies Legally Do to Collect Debts
    Hey,

    On March 2, 2016, I rented a Uhaul out for my Aunt and Uncle In Law, they couldn't afford to pay for it, so I paid and SIGNED my name onto the document (Poor Decision I know, I was in between jobs and was going through a bit of a transition, etc.)

    To keep a long story short, he wreck the truck, totaling it which came up to $10,702 worth of damages, it wasn't even insured ( I couldn't afford the extra $100 to do it sadly).

    So now I have a collection agency down my back saying they need to finish up the "Investigation" and if I can' t pay payments they can suspend my license, garnish my wages and take income taxes. They are located out of state in AZ and I'm here in Georgia.

    Can they do this to me? Can they strong arm me into paying payments I CAN'T afford, I offered to pay at least $35 a month, I have a whole family to take care of. Something is better than nothing, and I do understand collection agencies say things to scare me, I need answers!!! (Thanks in advance)
  • 06-14-2017, 07:33 AM
    Mr. Knowitall
    Re: What Can Collection Agencies Legally Do to Collect Debts
    You should start by investigating with your state to determine whether or not the collection agency is even licensed to collect debts in your state. Also, read this article.

    They can't seek a driver's license suspension unless they get a judgment, so an 'investigation' is not enough. As for whether they could seek a suspension even with a judgment, I doubt it based on the facts you've provided, but you haven't told us the state in which the accident occurred. I am assuming that you have not been sued over the accident, and no judgment has been entered against you -- if that's not the case, please share the details.
  • 06-14-2017, 07:41 AM
    kennethwilder1
    Re: What Can Collection Agencies Legally Do to Collect Debts
    I'm sorry I'm located in Georgia. No judgment has been brought against me. All he said was that they are coming after me. I told him that I wasn't physically behind the wheel, so I provided him with a police report, don't know what good that would do, but he wanted it. I'm not sure if I'm being sued, he told me that he is representing the insurance company.
  • 06-14-2017, 08:09 AM
    flyingron
    Re: What Can Collection Agencies Legally Do to Collect Debts
    Who was behind the wheel means nothing. You rented the truck, it was incumbent on you to return it the way you got it.
    Until they sue you, all they can do is keep trying to badger you into paying. If you tell them (in writing) to stop, they will stop calling.
    Eventually, they will file suit against you in court. After they win in court. Georgia is quite liberal in the garnishment laws (though they repealed the prejudgment garnishment last year). You can indeed find money disappearing from your accounts and your wages garnished.

    They will NOT (even with a judgment) get a license suspension on you. There are requirements for that which are not met in this case (specifically it applies to you driving and hitting ANOTHER car, rather than the one you were driving, and neither having insurance nor the money to pay for the damages).
  • 06-14-2017, 08:13 AM
    kennethwilder1
    Re: What Can Collection Agencies Legally Do to Collect Debts
    Ok so basically my best bet is to start making some type of payments so it won't lead to that. What If I can't afford the amount that they want? Can I still pay something ...even if it's little every month to prevent this from happening?

    What if the collection agency isn't Licensed to collect debt in Georgia?
    Can I sue my Uncle in Law for not helping me pay?
  • 06-14-2017, 09:03 AM
    adjusterjack
    Re: What Can Collection Agencies Legally Do to Collect Debts
    Quote:

    Quoting kennethwilder1
    View Post
    Ok so basically my best bet is to start making some type of payments so it won't lead to that. What If I can't afford the amount that they want? Can I still pay something ...even if it's little every month to prevent this from happening?

    Paying $35 per month will take you more than 20 years but, yes, you can pay something every month, they won't send it back, but it won't prevent a lawsuit if they can get a lot more out of your paycheck with a judgment.

    Quote:

    Quoting kennethwilder1
    View Post
    What if the collection agency isn't Licensed to collect debt in Georgia?

    Collection agencies don't have to be licensed in Georgia.

    Quote:

    Quoting kennethwilder1
    View Post

    Can I sue my Uncle in Law for not helping me pay?

    Sure, you can sue him for indemnification which means you can sue him for what you actually pay.

    If you are having other financial difficulties you might want to consider bankruptcy.

    By the way, if you paid by credit card, see if the credit card covers damage to the rented vehicle.
  • 06-14-2017, 09:07 AM
    flyingron
    Re: What Can Collection Agencies Legally Do to Collect Debts
    That's entirely up to negotiation. They're not obliged to take any form of partial payment.
    First, if the person trying to collect OWNS the debt, they aren't really a collection agency in the terms of the law. The FDCPA and much state regulation does not apply to them. If you are being contacted by the insurance company, they almost certainly are the one who owns the debt.

    Second, Georgia doesn't license collection agencies. If they are an out of state agency, they need a certificate of authority, but frankly Georgia's laws on such are so friendly to the agnecies, there are many that operate nationwide from out of the Atlanta area.

    You can try suing your uncle for the damages he caused, but if he doesn't have the money, you're going to have a hard time collecting even if you win.
  • 06-14-2017, 09:24 AM
    kennethwilder1
    Re: What Can Collection Agencies Legally Do to Collect Debts
    I was trying to pay at lease $35- $70 a month, then pay the rest off with my income tax come Feb...That way I don't have to go the bankruptcy route .

    They don't own the debt, its a collection place called Recovery Partners Representing RepWest Insurance
  • 06-14-2017, 09:59 AM
    flyingron
    Re: What Can Collection Agencies Legally Do to Collect Debts
    Information here for Georgia: http://www.consumer.ga.gov/consumer-...ebt-collectors

    Recovery Partners (of Scottsdale, AZ) does have a certificate of authority on file with the Georgia Secretary of State.
  • 06-14-2017, 10:14 AM
    kennethwilder1
    Re: What Can Collection Agencies Legally Do to Collect Debts
    Ok, my only thing is this, what if I DO go the bankruptcy route, can I still purchase a home? Are programs out there catering to my problem? I'm just trying to purchase a home soon and take care of this all in the same time, I consolidated my student loans, I have a car loan balance of 37,000 and 4,000 is from another collection agency... So in total I owe around $52,000 . Would this be the best move?

    Also worst case scenario if they do garnish, I only make $2200 a month, %25 of that is $600 a month, is that a safer route, or paying little payments and then paying off the chunk when taxes come?
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