Dec 28
A company bought my account off of my original creditor for probably a small amount compared to the now $11,000 balance. Since the amount is more than $5000, it may have to be tried in civil court instead of small claims. If brought to civil, would it be worth it for the collection agency to go ahead with filing it b/c of the money they will have to spend with court fee, etc? Also is it possible they can go to small claims instead by asking for $5000 instead of the full balance? They keep threatening to bring it to court asap, but then follow up the next day with a settlement of around $5000 or so while using different scaring tactics each call.
I just found out that the laws have really swung in the direction of the consumer because of the sleaziness of some of the collection agencies. It is literally better not to pay a dime to a collection agency because once you do they have a claim against you. However, they cannot garnish your wages or threaten to sue you from what I understand. Only the original creditor can do that. I know they cannot garnish your wages.
It is a crime how you have trouble suddenly in your life and you had a credit card with a $1500 or $2000 balance that becomes $11,000. Trust me I understand.
There are attorneys now who specialize in this and do not charge very much and I would see one pronto or contact one.
My advice for what it’s worth–Do not be intimidated to make a payment until you do.
Good Luck and God Bless
EDIT EDIT EDIT EDIT
Unless it is different in every state.
I Just spoke with a collection company last week (which is who buys loans from companies that are uncollectable) and she said point blank they CANNOT garnish your wages and once you set up payment plans with them then you cannot get out of paying for the whole bill. You need to read up on this. Google it because there was a great article about this last month but I can’t remember which mag. It was with an atty who specializes in this area and represents the debtor.
That is a large sum and someone paid money for it so yeah they will sue you as soon as they figure out where to garnish your wages from. Needless to say one way to find out where you work would be to ask you. They can also snatch all the money from your checking accounts if they know where you bank so keep that in mind. My advice is to settle with them. Try for a payment plan and also try to go a little less than $5000 cuz they probably paid less than that for the debt.
This big a debt won’t just fly away, except with chapter 7 bankruptcy so watch your step, you are now in a cat and mouse game with some professionals.