Credit Card Sent to 3rd Party Collection - Rights and Laws
Hello,
Going back about a year, I took a pay cut and ran into some extreme financial difficulties. My home depot card was sent to collections after it was delinquent for 120+ days. The 3rd party collection agency has been harrassing me for about 4 months. Going back to the beginning of the 4 months, I was threatened by the collection agency to be served with a summons at my place of work. I called citibank who originallly held the card and they advised that they cannot legally do that and that it was a scare tactic. Unfortunately they told me that I needed to deal with the 3rd party on payments, or I could mail my payments to Home depot and they would be applied. The 3rd party collection agency offered me an "open ended settlement for 70% of the debt. The told me that if I could make a $2,000 payment and then pay the other 2600 (70%) of the total debt within 60 days, they would settle the account. I told them that I may not be able to settle, could I leave this as an open ended settlement and try to gather the money. If not, could I make a minimum monthly payment rather than settle. The rep told me yes, try and pay off the 70% within 60 days. If you cannot, you can make $100 payments per month. after the initial $2,000 payment I was not able to come up with the additional 2600 to settle the account, so I made 2 monthly payments of $100 as we had agreed. The rep also told me that if I was ever in danger of not making a payment to call him and he gave me his direct extension.
Today I called them back today (time for the scheduled $100 payment) to advise I could only pay $50, but wanted to make a payment. Conveniently enough the rep is no longer with them. They told me that they gave me a hardship agreement and my balance was $4600 or so. They would settle for 50% if I could pay it now. I advised that I could not and explained that I made an agreement with the rep to make monthly payments of $100. However I could only make a $50 payment at this time. They told me that was not sufficient. They asked me what family members I could turn to. I informed them that was not possible as that was how I came up with the $2000 for the first payment.
They were increasingly hostile. I informed them that when I spoke with the original debt holder (Citibank) the advised that I could make my payments to Home Depot. I told this to the hostile rep and she said, fine you do that and we'll do what we have to do in a very threatening tone.
Can anyone give me advise as to how to best handle this situation. I don't want to keep making payments to them and would rather pay Home Depot. However, I don't know what the minimum is because it was handed over to the 3rd party.
These people are nasty and won't accept anything other than their terms. Is there any hope for me. Or is it proable that I will be sued. Im a resident of CT, what are the statute of limitations and what do I need to know pertaining this debt.
Re: Credit Card Sent to 3rd Party Collection - Rights and Laws
Home Depot has assigned the debt to the collection agency, which is their right.
If you breach a repayment agreement with the collection agency, by not making all payments on time and as agreed, any forebearance or partial repayment agreement would normally be voided.
You can instruct a collection agency not to contact you, but they can sue you for the money you owe.
Re: Credit Card Sent to 3rd Party Collection - Rights and Laws
Hello,
Ok, makes sense. However there was no payment contract. I was never asked to sign anything, I was never faxed or mailed any type of payment arrangement. I was verbal with the rep who is no longer with them. He advised that he would leave it an open ended settlement and that If I wasn't able to acquire the funds to payout the settlement amount, I could make $100/mo payments. He also advised that if I was in jeopardy of not being able to make the payments, to call him, which I tried to do. However, they did agressively advised me that he is no longer with them.
Should they have to furnish some sort of contract for payment, or is this loose verbal with the rep going to hurt my position. I could probably make the $100 payment, but again they never sent me anything telling me when the payments were due and any minimum amount?
Also, Citibank had advised me that they do not own the debt, they are acting for citibank and that it would get turned back over to citibank.
Any help that you could provide would be much appreciated. I very much want to make this situation right, but I'm limited in what I can as they won't take my payment $50 or $100 and won't allow me to pay less than the 50% settlement amount they offered.
Thanks,
Re: Credit Card Sent to 3rd Party Collection - Rights and Laws
I would suggest always getting any agreement confirmed in writing.
Re: Credit Card Sent to 3rd Party Collection - Rights and Laws
Hello,
Ok, I agree. Foolish on my part!
I called them back and asked for the agreement in writing from the previous representative. She flat our refused. She said "your $100 payment is not accepted here" and continued to talk over me. I asked her to let me speak and she said I don't have to because "You don't want to hear the truth". She said "pay $465/month for three months and thats all that we will accept...if you want a legal document stating that, I'll send it now, then hung up on me.
Am I just backed up against a wall here? Is there anything that I can do....I have proof that they accepted the $100/month for two months as I agreed with the previous rep by way of bank statements. Am I beating a dead horse so to speak.
What is the next best move. Do I let it run it's course and see if they try to sue, or shall I make my $100 payment to Home Depot as citibank had said I could. does it do me any good to make the payment, or am I just prolonging the bleeding. If they did decide to sue, do I have any case in that they don't have any agreement that I entered into in writing saying that I would settle the debt. If they don't have any type of agreement, just the money that I paid, am I right back to square one less $2200?
Is there any benefit to instructing them to no longer contact me using the link you had provided above other than them no longer calling.
thanks for the tips and advice.
Re: Credit Card Sent to 3rd Party Collection - Rights and Laws
One more question. What is the probability that they will try and take me to small claims court over the remaining balance. The remaining balance is about $4600. Issues for small claims court in Connecicut are $5,000 or less. Is it likely that they will even attempt, or is the best be to notify them to cease communication?
Thanks
Re: Credit Card Sent to 3rd Party Collection - Rights and Laws
You can work out a deal (and follow it this time), or see what happens if you refuse to pay. Only the collection agency knows if it will sue over this debt.
Re: Credit Card Sent to 3rd Party Collection - Rights and Laws
Hello Again,
Rather than drag this out, I've found a way obtain the money to settle the account. They have offered to me the ability to settle the account for 50% of the debt owed. My question is, what should I request/require in writing for the settlement. I want to make sure that I cover all bases, settle the debt and put it behind me. Your input is greatly appreciated.
Re: Credit Card Sent to 3rd Party Collection - Rights and Laws