Owing a Debt from a Collection Agency

The problem I recently encountered is about a school that I worked for mailed me the bill to the debt I owed from a collection agency. The collection agency and I made a payment plan. However, it turned out that it is too much for me to manage given that I have limited budget at the moment. I asked them that I will keep on paying what I am paying off them but it will be only once a month rather than twice a month.

The collection agency informed me that the amount they are collecting from me will not take less than 10% in payments for the reason that the debt is nearly 5 years old. I cannot do that and when I notified the agency that I could not put together such settlement, the agency told me that if the school does not obtain what they desire regarding the payments then they may withdraw the debt from this collection agency and ensue with a judgment against me such as garnishment. Do they have the authority to tell me what I have to pay them? I have learned that they must agree to whatever I provide them and if they do not then I can take legal action on it and have the debt eliminated?

Buy Now! Collection Agency Kung Fu

Unluckily, no, you cannot just present whatever you wish for a collection agency and oblige them to remove your debt. If that was factual, everybody would basically offer to pay $1 to each collection agent that has contacted them. Aside from that, if they did not acknowledge their debts, it would be eliminated.

The service of a collection agency is to pull together payment from debts. If they do not believe you are paying off your owed money promptly, they can go back to your account with your original creditor, or they could hunt you further by trying to garnishee your wages. In nearly all cases, if you are paying something sensible, it is not probable that they will bring the case to court.

For the moment, your most excellent choice may be to just continue to send them what you can manage to pay for. Provided that they continually accept the money and not bring you to court, you have a possibility to keep on making payments. If they decline any payment you made, or if they do initiate court proceedings, it will then be moment to think of your other alternatives in managing your debt.

See Also

Bringing an End with Collection Agency Calls

Common Problems Dealing with a Collection Agency

Collection Agencies-Kung Fu System

External Links

Collectionagencyservices.net

Investopedia.com

Moneyproblems.ca