Can they legally do this?

[Mickeyistheman]

Trying NOT to stress out about this. Need advice please otherwise I am going to give myself a heart attack.

Since Jan. 2009 I have been in collection with one of my credit cards...my neighbors had been getting my notices where I could have settled for a lesser amount but never got them. So of course what do I get in the mail that they want to take me to court if I don't answer them. I IMMEDIATELY call this law office and of course want to take care of it. I was unemployed for 3 months at that time so of course I was already freaking out.

I told them that I could pay $100 a month, they sent me forms in the mail and that was agreed upon and they would follow up every 6 months to review it. I was unemployed until Jan. 2010. I had NEVER missed a payment and I acutally paid early every single month. It was due on the 5th of June but I had paid by the 1st of every month IF NOT SOONER.

Every time there was a review I told them that I could not pay more due to my circumstances, I sent them a copy of my unemployment check and no problem. Now that I have been working and making $250 less a month! Go figure but I do have benefits now, which helps. They want me to pay $225 a month. I told them that I am not able to do that, they told me that if I don't they will garnish my wages. Our home is in foreclosure, I have medical bills that are WAY up there and I am trying to pay them off as well.

I told them that I have never missed a payment, made payments early and on time. They told me if I gave them a payment of $1000 they would "consider it" I want to fight this, its not that I don't want to pay I just can't make that amount right now. Help....please

 

[brerrabbit]

Review the paperwork you signed with them agreeing to pay them $100 a month and see what it says. If the agreement does not provide for the review every six months and only says $100 a month till it's paid off then you don't have to do anything other than send your check every month. Many collection companies will get you on the hook by signing what you think is a good deal only to later try and expidite the recovery process. If the original agreement says $100 a month till paid then I would ignore everything else. If it calls for reviews and adjustments then they are within their rights to try and modify the payment schedule.

 

[RF536]

I wouldn't worry too much, even if they can adjust the payment. I was taken to court by a credit card, because I have been unemployed for 2 years and just couldn't pay what they were asking. They can ask for whatever they want, but if you can show the judge that it is just not possible, he/she has the authority to keep you at the $100/mo that you agreed to. The fact that you paid as agreed to and have been on time every month will go a long way to help you in the judge's eyes, because you are doing your best to fullfill your obligation.

 

[Bren's Mom]

Go read, read, read on creditboards.com.

 

[Mickeyistheman]

Thank you all very much, what I don't understand is why when I am now making less money, they want more money. Trust me if I could pay this off I would, but our home is in foreclosure, we are just barely getting by and I am trying to find a new place to live, however I may be living in my car very soon.

They said that if I didn't pay them the extra money they were going to garnish my wages! That upset me to no end, I mean this is not child support its for a credit card and its not that I won't pay I just can't pay what they are asking. I offered to pay $150 more and even that is cutting it very close and they said the only way that would work is if I paid them $1000! Which is just not possible. I cried myself to sleep last night, I am just so upset over this whole thing.

 

[wvjules]

Thank you all very much, what I don't understand is why when I am now making less money, they want more money. Trust me if I could pay this off I would, but our home is in foreclosure, we are just barely getting by and I am trying to find a new place to live, however I may be living in my car very soon.

They said that if I didn't pay them the extra money they were going to garnish my wages! That upset me to no end, I mean this is not child support its for a credit card and its not that I won't pay I just can't pay what they are asking. I offered to pay $150 more and even that is cutting it very close and they said the only way that would work is if I paid them $1000! Which is just not possible. I cried myself to sleep last night, I am just so upset over this whole thing.

They can't garnish your wages without a court order. You are already in forclosure and are barely getting by I would tell this collection agency to go pound sand. How do you know they legally own the debt? Are they licensed to collect in your state? Have the proven TO YOU that you owe THEM that money? Cancel the checking account you are sending checks from so they don't wipe you out then go READ READ READ at credit boards. You shouldn't have committed to paying a collection agency in the first place. The people at credit boards should be able to help you.

 

[Mickeyistheman]

They are legitimate. I did check into that in first place because of all those scams going on.

Thank you WVJULES, I will check out that board you suggested. I have always been pleasant with them and never gave them any grief but now they are getting nasty and I tried to help them understand and I even offered $50 more but it wasn't enough that is what really put me over the edge.

I know many are worse off than I am and I feel for them, but for myself I feel that I am at bottom and I can't even see the light right now.

I am thankful that I have good friends that make me smile...Oh and The Dis!

 

[Jennasis]

Sounds like a bully tactic (asking for the $1k). They're just fishing to see if you have more moeny than you are letting on. Continue paying the $100 as agreed upon. If they take you to court to garnish your wages I imagine you have enough documentation to show a judge that there is NO additional money.

Can't get blood from a stone, you know. If you don't mind me asking..how much is the debt?

 

[monkeybug]

They can't garnish your wages without a court order. You are already in forclosure and are barely getting by I would tell this collection agency to go pound sand. How do you know they legally own the debt? Are they licensed to collect in your state? Have the proven TO YOU that you owe THEM that money? Cancel the checking account you are sending checks from so they don't wipe you out then go READ READ READ at credit boards. You shouldn't have committed to paying a collection agency in the first place. The people at credit boards should be able to help you.

My good friend went through a divorce about 5 years back, and had to basically stop paying her credit cards for a few years.
Then her family members and even some neighbors started getting phone calls from someone claiming to be in the "pre legal" department and need to talk to her right away. She freaked out and called to set up a payment plan immediately. They also threatened to garnish her wages unless she accepted a payment that was way beyond her means. She ended up having her dad loan her money so that she could meet their demands.
Flash forward to this year when her and her new husband are getting ready to purchase a home. He pulled up her credit report and even though she paid the balance to the collection agency, it still showed that she owed the entire amount! Turns out that collection agency wasn't real (or didn't really own the debt), and she was scammed out of about $5,000!!!
Like others have said, they can't garnish your wages with out a court order, and even if that came to be, they can only take a certain percentage of your check each month. My friend now wishes she had just told them to go ahead and garnish her wages, because at least she would have found out they had no legal claim to the money!!
She was referred by the mortgage company handling their home purchase to a state website that listed a reputable credit counselor, and she is currently working with them to take care of the rest of her debt. She lives in CA, but I imagine they have them in every state? Maybe contact someone like that to handle all your future payments? (but be careful to choose a reputable one because I guess a lot of "credit counselors" are scammers too!)

 

[bettymae1121]

They can't garnish without a court order, and there are state laws in places putting limits on how much they can garnish. Sounds like you make so little that even if they do manage to garnish, they likely wouldn't get much more than the $100 you're paying them now anyway.

Go to credit boards, and I also recomend this forum, I like them better than credit boards, they are more patient with newbies, IMO: http://www.debt-consolidation-credit-repair-service.com/forums/index.php

 

[Luvchefmic]

Also the collection agency is working for the original creditor so you must remember that..the collection agency per se can't get a court judgement against you the creditor has to. Your best defense is knowledge; not in all states will they have the right to garnish your wages...you'll have to find out if in NJ they can or can't.

You have alot of stress with the situation with the roof over your head..can you maybe contact a legal aid atty and see where you stand on everything?

I send you the best

 

[Mickeyistheman]

I actually have never sent them a check, I have called and given them my CC over the phone.

My cousin also works for a different debt collector and said that they can't garnish my wages. I do have a paper that states that I am to pay $100 but they will review. BUT it is up to ME to do that, NOT the debt collector.

Which every month I have done so since actually Feb. 2009. However on the copy that I have it says...Upon default, plaintiff is also entitled to seek collection by any other means besides garnishment.

So that would mean if I am correct, they CANNOT garnish my salary?

 

[Motherofboys]

Wvjules is right, they need a court order to garnish your wages. Which means they would need to take you to court and get a judgment against you. If they take you to court (which honestly is better than making a deal with a collection agency since they are always looking for sneaky ways to screw you over) then you can show the judge you have been paying what you can afford and he/she will determine what you pay.

And you will have a final judgment amount to pay off, which is much better than what happens with most collection agencies. Case example, client made agreement to pay off $1,500 cc debt with collection agency - paid $100 a month then called them after 12 months to get her final balance so she could pay it off -- guess what? It was still over $1,000!!! They were adding interest and fees the whole time!

Also, with being close to foreclosure, having huge medical bills, cc debt, lower wages -- it might be time to start looking at a chapter 7 bankruptcy. I know that they are very unpopular on this board, but your situation seems like it might be the best option for you. Just sayin', something to consider.

 

[Mickeyistheman]

I was hoping I would not have to go that route, but right now that may be the only way and its very upsetting. I thank everyone for all the advice and help. I will keep you posted.

 

[Drew Sailbum]

...Since Jan. 2009 I have been in collection with one of my credit cards...my neighbors had been getting my notices where I could have settled for a lesser amount but never got them.

Couple points to focus on...

Was this debt passed to a collection agency?
Was this notice you neighbors received properly addressed to you?
Was notice made by a process server?

Collection agencies are absolutely forbidden to even reveal the existance of a debt to a third party such as your neighbor. If they take you to court you could counter-sue. I believe it is $500 per violation.

If it is the original holder of the debt and not a collection agency then you may not have the same rights. Your rights may vary according to your state of residence.

If it was a genuine error on the part of the post office by delivering mail to an address other than the address on the envelope then you may not have much to go on.

 

[Planogirl]

You can pull your credit report and (assuming that they are reporting the debt) often find out if they are working as an agent for the original debtor or if the original debtor sold off the account.

Can you mention the name of the collection agency? They are all capable of underhanded deeds of course but some are legitimate and some not so much. The links that you were already given will likely have information specific to the bigger collection companies.

I agree that considering bankruptcy might be a good idea. I'm so sorry that you are going through this.

 

[Carly_Roach]

Also, with being close to foreclosure, having huge medical bills, cc debt, lower wages -- it might be time to start looking at a chapter 7 bankruptcy. I know that they are very unpopular on this board, but your situation seems like it might be the best option for you. Just sayin', something to consider.

I'm glad someone else said this first. I agree. Solve the problem completely and declare bankruptcy. You've already got a foreclosure on your record, a bankruptcy isn't going to make it any worse and you'll be able to keep your money to get a fresh start.

Good luck.

 

[FireDancer]

Have you looked at the Fair Debt Collection Practices Act (here) to see if it addresses your situation? The FDCPA is the federal document that spells out how debts can be collected. States can enact different or additional practices so check you state also but the state enacted protections must give more protection to the debtor and not less.

 

[RachaelA]

Once they have a judgment (if they don't already) they can garnish your wages. They will take 25% of your take home pay.

How much is owed? I work for a law firm that deals with collections so I know the process. I'm sure they will get more money each month by garnishing your wages then $100 a month.

 

[chloelovesdisney]

Collection agents will say anything and are trained to bully and scare people. Let them take you to court if they want, they won't get much more than what you are paying them if you are making less than unemployment.