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Can debt collectors and creditors refuse my payment?

See Payment refusal options below.

debt collector harassmentSome people believe that collectors and creditors cannot legally refuse your payment or payment offer. Others believe that as soon as collectors and creditors refuse your “tender of payment” they forfeit the right to collect on the account and the debt is discharged.

The law that is often misquoted is called the Uniform Commercial Code (UCC) and, when it is misquoted, people are led to believe that if a payment offer is refused, the debt is wiped out. Using this logic, I could offer a $5 payment on a $10,000 debt and if the creditor or collector refused my offer, the debt is discharged. If this were the case, everyone would be making $5 offers and clearing their debt. Heck, if we all did that this country would be debt free in no time.

Below is the section of the UCC that is always misinterpreted, but first, understand payment arrangements are about leverage, and you need to know your bargaining power before going into any negotiation. Get FREE answers and a FREE financial analysis from experienced Debt Help Lawyers today.

U.C.C. – ARTICLE 3 – NEGOTIABLE INSTRUMENTS , PART 6. DISCHARGE AND PAYMENT

§ 3-603. TENDER OF PAYMENT.

(a) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is governed by principles of law applicable to tender of payment under a simple contract.

(b) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused, there is discharge, to the extent of the amount of the tender, of the obligation of an indorser or accommodation party having a right of recourse with respect to the obligation to which the tender relates.

(c) If tender of payment of an amount due on an instrument is made to a person entitled to enforce the instrument, the obligation of the obligor to pay interest after the due date on the amount tendered is discharged. If presentment is required with respect to an instrument and the obligor is able and ready to pay on the due date at every place of payment stated in the instrument, the obligor is deemed to have made tender of payment on the due date to the person entitled to enforce the instrument.

Fight Debt Collector AbuseFrom my research, this law does NOT apply to the cancellation of credit contracts. Article 3-603(b) refers to the tender of payments using negotiable instruments (checks, bank drafts, and so forth) and, if the payment is refused, the amount of the tender is discharged. So, even if this rule did apply, the only amount that is discharged is the face value of the negotiable instrument.

So, in my opinion anyone quoting this law as a means to discharge credit contracts are misinterpreting the law. Learn more here…

Uniform Commercial Code

So what are my options when debt collectors refuse my payment offer?

First, you need to know that there is no law that compels collectors to accept your payments or payment offer or agreement letter.

Second, recognize that negotiate with collectors on the phone is difficult at best because they are trained to control the conversation. Unless you are a very skilled negotiator, you’ll only end up angry, scared or frustrated. Use this script for when bill collectors call, and you may want to enlist a Debt Help Lawyer to handle your negotiations .

Third, always check the Statute of limitations on debt collection BEFORE making any payment offer.

If you want to make a payment offer, PUT IT IN WRITING! That way you and the collector have a record of your “good faith” effort to resolve the issue.

Use these sample letters:

Debt Payment Agreement Letter
Use this letter when you want to make a payment offer.

Payment Termination Letter
Use this letter when you have been making regular payments and the collector suddenly demands more money.

Using letters becomes extremely important if you have to defend your actions in court. Judges want to see what you have done to take care of the debt and written payment offers are strong evidence of your good faith.

When collectors first attempt to collect they can be very aggressive and may refuse to cooperate! They are trained to only accept certain types of payments such as full payments, post-dated checks, electronic payments and so forth. Send your payment offer in writing and let them accept or decline your offer. If they accept, you’ll probably never receive anything in writing that says they accept your plan however, the sample letter covers this with a statement that says, “Please note that accepting (cashing) this payment constitutes a payment agreement between us according to the terms outlined above.”

KEEP ACCURATE RECORDS! Keep copies of every letter you send and everything they send including the envelopes.

What about creditors who refuse payments?

Most creditors will work with you if you call them BEFORE the account goes delinquent! Letting them know ahead of time shows that you care and helps maintain your credibility. Mind you that not all creditors will work with you regardless of your previous payment history. I’ve seen people miss a payment for the first time in 10 years and their creditor had no mercy.

Early intervention may get your creditor to: See these guidelines for negotiating with creditors

  • eliminate late charges on your account.
  • not report your delinquency to credit reporting agencies.
  • permit you to make interest-only payments for awhile
  • Prevent your utilities from being cut off.
  • Not turn your account over to a collection agency
  • Defer payments to the end of your contract.

Failing to contact your creditor is a big mistake but it happens and eventually they call demanding the full balance or payments much higher than you can afford. Keep in mind that, just like collectors, creditors are not compelled to accept your payment offer. The idea that they have to accept your payment or discharge the debt is a myth (see first paragraph).

When creditors refuse payments, it’s usually because company policy prohibits it. It can’t hurt to ask and if your first offer is declined, ask what they feel is an acceptable payment. You may have to negotiate for awhile and what ever you do, DO NOT agree to terms that you cannot afford. Agreeing to terms you cannot afford is dangerous and only leads to another broken promise down the road and ruins your creditability.

As a last resort if they refuse to work with you, send a written payment offer anyway. They may just accept it even after refusing your plan on the phone.

59 comments

  1. What can you do if a plaintiff wins a civil case against you and refuses payment in full? I have tried to pay the court directly and they only do that for small claims. Can I take the plaintiffs to court or have the debt be dismissed if they refuse payment in full? I need this off my credit because it is hurting my job opportunities.

    • If you are trying to pay a judgment in full and the creditor refuses, that may be an unfair or deceptive trade practice and an unconscionable act under the Fair Debt Collection Practices Act. But someone refusing payment in full I an odd situation and it would seem doing so is only aimed increasing interest.

      It sounds like you may need the backing of a Debt Help Lawyer to square this debt away. Call 888 595 9111 for a free no obligation consultation.

      • I am in this same situation. I made 2 offers, one was a lump sum of roughly 40% of the judgment amount. It was refused. The second was a series of monthly payments totaling the full judgment amount. Also refused. They said “it’s not enough. We will only accept payment in full”. Since they already have a judgment my guess is they are just wanting to add interest. I submitted a final offer of payment in full with the amount THEY sent me in a letter dated a week before I made the offer. This most recent offer has not been acknowledged. If this is refused, would I have grounds to have the judgment overturned? I also disputed their statutory interest since the statute in my state requires a signature from the person being charged (me), and there are NO documents to be found with my signature on them and the judgment does not state an interest rate. The judgment says “by agreement” however I was not served as the address on the summons was incorrect and I did not appear in court. Alas it was 6.5 years ago.

        • You likely have experienced some sort of Fair Debt violation(s), and even if not, it sounds like you would benefit from re-prioritizing your debts through debt settlement, and the Debt Help Lawyers at this site can provide you a free, no obligation Fair Debt consultation. The worst thing to do is nothing, so call us now at 888-595-9111 and we will get started figuring our how to help you!

  2. Via certified mail, I sent a letter offering payment in full for a debt and my only terms were that they remove the ‘in collections’ status from my credit report and that they accept this to send this to me in writing. Their reply was to send me a stock ‘this is an attempt to collect a debt’ letter and didn’t say if they accepted or declined my offer and they ask that I call them. I am willing to pay in full, but they are refusing to put anything in writing. What should I do?

    • Sounds fishy. Don’t pay anything without adequate assurances. You can try to get those assurances yourself (for example, write the conditions in the memo part of the check, or send a letter with the check stating acceptance of the check constitutes an agreement), or you can just get a Debt Help Lawyer to assist you, whether it be in negotiating down the balance or suing under the FDCPA. These guys will consult you for free and represent you at little to no cost to you.

  3. I have been treated in a very rude manor by NES (Debt Collection Agency). I wanted to clear my credit as I lost my job and was unemployed for a period of 6 months. I paid off all old debt after being re-employed and contacted each debtor on my own – I contacted each debtor and most worked well with me, though paying off all credit card was a mistake. It had no effect at all on my credit but still showed as “Negative” due to payments (even if paid off) was late. CareCredit with GE Captial turned me over to NES collection agency. I called them and I told them I could make arrangements, pay them monthy, etc..or a lump sum, but I was told by the rep with NES that they would not mail me a statement, a receipt or anything and that they HAD to AUTO DEDUCT from my bank acct every month. I allowed them to do this, until my 6 mnth contract job – paying fairly good money – ended. I called NES and asked if they could delay the ACH payments from my acct as I was once again unemployed and they began to get too personal with me, making statements, asking questions: such as, “Okay, we can charge you double the amount from your bk acct next mnth!” I assured them the money would not be there. The rude lady on the phone then stated, “Hmmm, so I bet you’re on unemployment, right??? You are aren’t You…” She was very rude. That’s none of her business, but, the answer was absolutely “No” – no unemployment. Only a lot of bills, rent, and I’m a single mom with a son in college with Asperger’s syndrome of whom I help financially. They did not care. I called – finally – the original debtor (CareCredit – a small loan for emergency dental work that had to be done…) I explained the situation to them, though I also, as they told me, let them know that I was also recording the call. (I have it on my phone now) In short, I’ve paid well over the amount of the loan ($1000.00) and am now only paying interest. 2 more payments left of 137.00 per mnth auto deducted from my account. I am about to call NES again to NOT deduct from my account until I have some kind of receipt, statement or proof of payment. I was told by CareCredit (original debtor) that NES wouldn’t give me a statement or mail / email any proof of payment. How do I know that CareCredit will receive notice that I paid them off??? I honestly don’t know the credit protection laws in Texas and would like to know if they can demand Auto Drafts from your bank account. I am again unemployed and my son needs help…i haven’t paid my health insurance premium in 2 mnths and have health problems. Would love to know TX law in regard to NES demanding to deduct from my bank account!

    • No one can demand bank account info, least of all a debt collection company like National Enterprise Systems (NES). So don’t give it to them, and don’t fall for their bullying.

      What’s more, the things they said to you sound like they are on the cusp of, if not past the point of, violating the FDCPA. Violations of the FDCPA entitle you to up to $1,000 statutory damages, plus actual damages, plus attorney fees, so it costs nothing out of pocket, win or lose, to retain a Debt Help Lawyer from this website.

      Please contact us today, your story is troubling and we’d like to help. You may even qualify for our debt settlement services. Call 888-595-9111 or just enter your info into our easy online case review form.

  4. Recently I had a conversation with a collector who was trying to collect on behalf of a creditor.
    I made a settlement offer, and the collector outright refused to present that offer to the creditor, stating that it was just too low and they didn’t want to waste the creditor’s time with it.
    Are they legally allowed to refuse to present my offer? Can I side-step them and make an offer directly to the creditor?

    • You sure are. The problem is creditors often give debts to outside collections, so they may likely choose not to communicate with you. Its often a different game when you have a debt help lawyer on your side, whether it be to enforce the FDCPA and other consumer protection laws, to help you settle your debts or to just dispute stuff that makes no sense to you. Call 888-595-9111 and we’ll set you up with a free, no obligation case review to see how we can solve your debt troubles.

  5. I was approximately 90 days behind on my auto loan with Wells Fargo Dealer Services. 4 days ago, I had managed to get together enough money to pay the total 3 month delinquent balance, so I called the number the had left on my voicemail instructing me to call them back because I was behind. When I called, I immediately gave the representative all my identifying info and she pulled up the account. I then told her verbaim “Hi, I’m calling to pay off all my late payment in full and bring my account current.”. She then said “Oh, so-and-so is handling your account and you have to speak with her I can’t accept payment from you, only she can work with you because she’s assigned to your account.”. She then said that that person was not in, and did I want her direct line and did I want to be transferred. I said to her “Well, my car’s about to be repo’d and I have the full payment and I don’t want that to happen. She again stated “I can’t even fully open your account so there’s nothing I can do”. I then asked for a different manager, and she said no one else in management was there. She then asked if if like the rep’s number and if I’d like to be transferred to that rep im charge of my account, and I said “ok”. She transferred me and I left a message explaining once again that I had full payment and I needed to pay iit. I tried calling back to see if a different agent would pick up, but now for some reason it was going directly to the rep in charge of my account’s voicemail almost like they were avoiding me. I left her 2 more messages that I was trying to reach them to pay. The next day, they repo’d my car. What rights do I have here? I greatly appreciate any help you can give!!

    • There is not a “one size fits all” set of rights as to repos and your best options depend on a fast analysis of your state’s law and the loan contract’s terms, so we better get the Debt Help Lawyers here on your FREE case review right away. They will need info specific to your situation, you can get them this info by calling 888 FDCPA LAW now. Meanwhile, You can learn some basics of repossession laws here.

  6. I went to pay my loan. I tried to pay half of what was owed. Two different people told me I had to pay it in full. Now they are trying to garnis my wages. Can they do that in Alabama.

    • They can not garish your wages without first suing and being awarded a judgment by the courts. If you have been illegally garnished, you may be entitled to get that money back as well as have a valid claim for up to $1000 in statutory damages against the debt collector under the Fair Debt Collection Practices Act. Wouldn’t it be nice if the collector had to pay you? Call 888 595 9111 for a free, fast no obligation case review.

  7. My doctors office wanted me to make a higher than i can afford and i offered a lower payment and it was refused. I’m on disability and can only afford so much. What are my rights as far as them refusing my offer?

    • Blood cannot be gotten from a stone, and though the doctor isn’t legally required to accept a smaller payment, you cannot be forced to pay what you don’t have. Further, your disability income are “exempt” funds meaning they cannot be garnished or seized as long as you do not commingle the exempt funds with non-exempt funds (for example, a spouse’s paycheck). You can read more about exempt funds here or call us for a free, no obligation debt settlement consultation at 888-595-9111. And depending on where you live, you may have state law rights against creditors like your doctor’s office and may be able to make the doctor pay you.

  8. i recieved a call from collector wanting full payment i said i could pay 10 a month they refused saying they could only except 25 and i havent recieved anything from them in writing on this bill, i cant pay 25 she gave me 2 days or it will be rufusal to pay, cant i go back to the debtor and ask them if i can pay them?and shouldnt they have sent me a bill instead of a call first

    • The FDCPA requires the collector to send a “G” notice within 5 days of the first communication. The G notice tells you:
      (1) the amount of the debt;
      (2) the name of the creditor to whom the debt is owed;
      (3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;
      (4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and
      (5) a statement that, upon the consumer’s written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.
      Additionally, if they are charging you interest, that may be illegal if this is a junk debt buyer as opposed to a collector on behalf of the original creditor. Call us at 888-595-9111 and discuss your situation with a legal assistant, you may be entitled to up to $1,000 statutory damages.

  9. Can a landlord refuse payment of rent from a person other than the listed tenant. In other words can I pay my Mothers space rent @ her mobile home park? Does the landlord have any legal status to refuse my check? Or is it simply stupid on the parks behalf ?? Or does Mom simply get a month rent free?

    • Thank you for your question. Is your mother’s account in collections? It seems there are more facts that would help us answer your question more specifically, call us for a free, no obligation consultation at 888-595-9111.

  10. what if I sued 2 attorneys and they hired one of the attorney’s brother, he got the lawsuit dismissed, won a judgment because of it and then the brother hired back the collection agency where the other attorney works to collect? The collection agency where one of the attorneys that I originally sued filed a writ of execution to have the sheriff come and take my property and sell it to collect. It seems like a conflict of interest. Is there any th ING illegal about what they are doing?

  11. My car dealer finance company refuses to accept payments from me because the car is in my husband’s name. Is this legal?

    • Thank you for question. Consumers do have rights under a variety of laws designed to protect you. The tactics of the finance company sound questionable. Take advantage of this site’s FREE, no obligation case review and let’s figure out how to get you some real help, call us at 888-595-9111 and we’ll get you taken care of.

  12. My boyfriend went to renew his licence in Florida, they told him he had to resolve a ticket in Maryland, he called to find out what it was and found a judgement has been entered against his license for an accident where he banged up a car. (He was uninsured) This was three years ago or longer, he never even knew about the court case or judgement. They have suspended his license. We offered to make monthly payments, offered to pay yearly out of taxes. The lawyer (for the other people) said they have to have our bank account info, statements and all, work info, and pay stubs to even attempt to figure out what the lowest “down payment” might be. I don’t know what to do, is there a minimum monthly payment in Maryland? Do we have to make a down payment? If we do, do we have to do that AND monthly payments or can we pay out of taxes? We have to do something because they won’t lift the suspension without a payment arrangement of some sort, but the lawyer was very short with us on the phone and kept rushing us off as we tried to get answers. We’re a family of six, barely making it on 10 dollars an hour.

    Thanks for any help you can offer.

    • Blood cannot be gotten from a stone, and though the judgment plaintiff isn’t legally required to accept a smaller payment, you cannot be forced to pay what you don’t have. You can read more about exempt funds here or call us for a free, no obligation debt settlement consultation at 888-595-9111. And depending on where you live, you may have state law rights.

  13. Atlantic credit is telling me I have to set up an automatic withdrawal with them. They will not accept individual payments month to month. I want to pay the debt but if they won’t even let me make a payment what am I supposed to do. So far today they have called me twice and my wife twice and I doubt it will stop there. What should I do?

    • If you owe the debt, and plan to pay it, consider setting up automatic withdrawals. Most automatic withdrawal forms violate the Electronic Fund Transfer Act (violations of which entitle you to up to $1,000 statutory damages plus actual damages, and post dated payments (which they are asking for) have strict notice requirements under the FDCPA which if violated also entitles you to up to $1,000 statutory damages plus actual damages! TURN THE TABLES on these guys, and the Debt Help Lawyers at this site will represent you under both these statutes at NO COST YOU! If you don’t plan to pay the debt, just tell them to stop, and if they don’t, call us at 888-595-9111 for free help to recover damages for you.

      • Boro tax collector doesn’t want my money?

        Cathe and I forgot to pay local taxes this last go round and got a notice I think last week of Dec or first week of Jan with the tax rate and penalty, so we sent off checks for the full amount. including the amount of the penalty, each in a separate envelope.

        We got the checks back today with a note saying I can’t pay my taxes now because it had been turned over to a collection agency. Really? You can’t accept payment IN FULL now as the tax collector for the boro? Also, he didn’t return mine separately and just stuffed mine in with Cathe’s and sent both back to her.

        I’ve paid taxes in half a dozen states over the years and never had this occur. Of course, I never made out a tax check to a person rather than a municipality either.

        We’re talking $30 here…

  14. I was sued by Personal Finance Company in April of 2014. I entered into a consent judgment with their attorneys, Miller & Steeno, P.C. (technically a debt collector) for $115.00 per month. When I was required to take medical leave, I was unable to make any further payments and a garnishment was issued. However, at the end of January, I made a settlement offer of $2,500.00 and it was accepted. I was not made aware of a 15 day deadline and was told that there was not going to be any paperwork provided to me for this agreement. Due to issues with my bank and financial manager, my payment was delayed until February 24, 2015. They have had the check for a week and have refused to cash it because it was “late” and have actually issued a second garnishment. What can I do about this? They have consistently refused to provide any paperwork and have bounced me from person to person. The person who set up the agreement did not advise me of the 15 day deadline and told me that I would have to get all documents from the court. However, being a paralegal in the field of litigation, I have never seen one of my clients agree to a settlement without signing at least one document. Does this make the agreement null and void? Also, would I have standing to sue them for their refusal to cash the check after their client agreed to the settlement?

    • You may have experienced some sort of Fair Debt violation(s), the Debt Help Lawyers at this site can provide you a free, no obligation Fair Debt consultation. The worst thing to do is nothing, so call us now at 888-595-9111 and we will get started figuring our how to help you!

  15. I recently received court papers via sheriff from a debt collector who had in the past relentlessly harrassed me over a debt but didn’t bother to tell me i had another debt with them. When i called to start making payments, they used double language. They said they couldn’t accept any payment less than 50 dollars a month, I’d offered 25, said that they were still going to sue me and that i actually owed almost twice what the court papers said.

    • You may have experienced some sort of Fair Debt violation(s), and even if not, it sounds like you would benefit from re-prioritizing your debts through debt settlement, and the Debt Help Lawyers at this site can provide you a free, no obligation Fair Debt consultation. The worst thing to do is nothing, so call us now at 888-595-9111 and we will get started figuring our how to help you!

  16. I live in TN I am almost 30 days late on a title loan. I just lost my job and told the loan company. my payment is 103.00 over the past few weeks I have managed to gather 90.00. at first I offerd 45.00 they said no then a few days later I offerd another 20.00 again they told me no I also tired yesterday to give them a total of 90.00 to put on my payment so they wouldn’t repo my car but once again I was told that they are not allowed to except any form of payment other than the whole payment amount. is there a law against this refusing a payment. im at least trying to show them I do want to pay on my bill…. can anyone give me any answers I really cant let my car get repoed… thank you.

    • Is this debt still held by the original creditor? Or Has the account in collections? It sounds like you would benefit from re-prioritizing your debts through debt settlement, and the Debt Help Lawyers at this site can provide you a free, no obligation Fair Debt consultation. The worst thing to do is nothing, so call us now at 888-595-9111 and we will get started figuring our how to help you!

  17. I fell behind on a student loan. It was passed off to a debt collector. They are trying to say I have to pay $430 a month when I can’t afford that. Do I not retain the right to determine what I CAN afford over them?

    • Is this a federal or private loan? The tactic you have described is one we have heard many times. It is possible that you have experienced some sort of Fair Debt violation(s), and even if not, it sounds like you would benefit from re-prioritizing your debts through debt settlement, and the Debt Help Lawyers at this site can provide you a free, no obligation Fair Debt consultation. The worst thing to do is nothing, so call us now at 888-595-9111 and we will get started figuring our how to help you!

  18. A debt collector contacted me about an accident I had about a year ago and I thought everything was taken care of. Next thing I know my grandmother is getting a letter a few weeks ago that we owe 5441.88. We never even got a chance to even try to pay the person we cause we didn’t know we owed them cause no one ever contacted till now which is a debt collector. Now they want 20% of the amount owed as a down payment and then pay monthly payments until its paid on full. Can they do that and are other companies be allowed to not contact you at all about a bill you owe and just hand it over to a debt collector? I told them can pay 200 a month and they refused it and told me since I live in nc that things can get really bad here with debt collectors get involved with the law

    • You did the right thing by reaching out to us, we can help. Some of the situation you described may be a potential violation of your rights, please give us a call to fully evaluate. There is no cost and no obligation for our attorney review. If we determine they have indeed violated your rights, the attorney will represent you at no cost in that claim.

  19. I have an account that has not yet been sent to collections and I have sent a years worth of post dated cheques and the clinic sent them back to me saying they are refusing my offer of these payments. Now they are threatening to send to collections again. I cannot afford to pay the lump sum but will pay with installments. How can i deal with them?

  20. I am behind on my mortgage 2 months. If I pay it in May, I am told that I have to pay for June as well. I have no job, but side jobs of approximately 100.00 a month. I am trying to get work. Can they refuse any payments? Can they foreclose on my home? I received a registered letter from them, they want to meet with me in person. What do I do?

    • It’s always a good idea to talk with your lender. They can refuse a partial payment and they can begin foreclosure proceedings. We would be happy to review the facts and determine if there have been any violations of your consumer rights. Give us a call, there is ZERO Cost.

  21. My dad got a loan for $600. The payment a month was set at 140. He got his work hours cut and was struggling so they split the payment up to two payments of $74 every two weeks I think. Some times he can only give about $50 he pays his bills alone and doesnt have a very big income. When i go to pay it because he doesn’t have a car to get there to pay it himself. And the laon place is in the same town i work in they always ask me to pay what he cant. They say we have to have at least this amount and when i say this $50 is all he gave me they just keep pushing. Can they refuse his payment like that and if they do can they get into trouble for always bagering me and refusing payment? I want to know his rights before i go back in there next month and spend an hour trying to tell them that is all he can afford and i dont want to give them money of my own for it every month when it’s not my bill.

    • Loans like that often result in many violations, whether it be FDCPA, TILA or EFTA. Save all voice mails and keep a call log. Then, send us the log and the loan contract, we’ll see what you are entitled to. Don’t get mad, get even.

  22. I am looking for a straight and simple answer on this one. If a borrower and lender agree on an amount to pay off a debt and the lender will not accept the payment does this discharge the debt in its entirety? Thanks.

  23. We received a collection letter a week ago regarding a breach of employment contract about 20 months ago for the amount of $28,000.00. But 4 months prior to the receipt of the collection letter we have been in communication with the original creditor (employer) and have come to terms to accept our monthly installment of $50.00 with their assurance that they will notify the collection agency that we are paying them. Payment was address to the original creditor because we did not know that the account was already forwarded to a collecting agency, we never received any collecting letter and we don’t know the name of the agency. I didn’t bother to ask the agency’s name thinking they are accepting our payment. Until last week we received for the 1st time a collection letter, this time from a different collecting agency. I called back the original creditor and they told me its not clear to them if the 1st collecting agency have sold or assigned the account to this new agency.

    We have contacted this new agency and told them that we have been paying directly to the original creditor. This new agency express their willingness to accept our monthly payment of $50 also. No documents was sent to us that the $50 is an agreed amount but instead he just send us a small index card stating the principal owe amount, interest – zero, court cost – zero , monthly payment $50.

    My question are:
    1. Was it legally right for the original creditor receive our payment when in fact the account was already forwarded to collecting agency?
    2. Can we consider this small index card bearing only the name of the collecting agency. No contact person is stated nor signature on it. Is this a valid document that collection agency agrees the $50 monthly payment up to the time this is fully settled with no interest?
    3. Can I verify this from the 1st collecting agency the validity of this 2nd collecting agency? If it is not a junk debt collector. Because I am really surprise why he easily accepted the $50 monthly payment considering the amount owe is big.

    Thank you.

    2

  24. This is not a question pertaining to owing late on a loan, but a leased semi truck my husband has. We have paid 20k into it and we owe another 22k. My husband has since gotten outside financing and we would like to sever toes with the original lease company and buyout the lease. The company is refusing to take payment from a third party, they are requiring my husband to pay the loan in full with his own money. They said they will not put a lien holder on the truck. We live in fl. Is this legal? How can they refuse?

  25. I live in Washington State. We have an unpaid medical bill that a collection company got a judgement for. We had been making $100 a month payments and then due to medical reasons I had to quit my job. My husband had been working at the time but then he became unemployed. We got our payments lowered to $50 and we had been paying that for the last year. They had us redo papers for income, re certification and when I told them our situation had not changed and we could only continue with the $50 a month they said no. Because we did not have proof of income all they would accept was $500 a month until the balance was paid. What can I do? Is this even fair?

  26. On 6/11/2015 I applied with the VA, North Central Consolidated Patient Account Center, Madison, WI for repayment plan. My total bill was over $800.00, when I talked to the representative about sending me the forms, they stated that when I completed the form I must send in the first payment. The debt can be paid off in 36 months. Because interest is always added to the bill even after payment plan is in placed I added interest to the total bill. $800.00 divided by 36 months = is near $25.00 a month. So I filled out the paperwork and the VA form 5655 Financial status report and sent in my first payment of $50.00, as instructed. On 6/17/2015 my check was cashed and cleared my bank. On 6/18/2015 (received by mail 6/25/2015 a letter stated: Decision on Repayment Plan. The Section that was (x) said A good faith payment has not been received. The representative I talked to earlier stated nothing about a good faith payment only the first payment for the repayment plan. There is another box that was not checked off which states The monthly payment requested does not pay off your debt within 36 months, the minimum monthly payment required is $ (because I am paying within 36 months). I am unsure what to do.
    They cashed my check even before the decision, does this not mean that they accepted my repayment plan. Should they not of cashed my check and returned it and informed me what a good faith payment was. I am a retired VA employee, Navy Vet. My husband works only part time and I have faithfully paid bills every month. The VA bill was only $280.00 on 4/1/2015 (VA was just charging me for my medicines) then at the end of May the bill jumped up to over $800.00 because they added in all doctor visits for one whole year. This is why I went with a repayment plan right away.
    Could you please advised me on this situation.
    Thank you very much

  27. I supposedly owe Directv $262.00. I sent them a letter stating I was on SS and it would be a hardship for me to pay it all at once. They raised my monthly fee from $83 to $93 the next month and $103 the next month. I called and told them I couldn’t afford $100 a month TV and that they needed to change things. They would not respond, so I switched to Dish. They sent me a bill stating I had broke my contract. I had been with them since 2009, so I didn’t know they had any contract. They said that my switch to High Definition was a knew contract and that I owed them $200 for breaking the contract plus the balance of the month. It came to $282.00. The letter I sent them also included a $20 check which they accepted. But they told me I had to pay the rest in full. Do I have to pay it all at once. I’ve made phone calls to their home office but they won’t budge. They want payment in full.

  28. I owed a company $2500 in 2012. It was turned over to a debt collector and not yet reported to my credit. I negotiated a $50 payment each month and it has been drafted each month since 2012. I now owe $1200. I was out of work in April 2015 on Medical Leave and since I’ve lost my job now June 2015. I called the collection agency in April 2015 (bad decision on my part) and asked them could I put a hold on the drafts until about June or July when I could go back to work? Sure they said just call us when you get back to work and we’ll re-initiate the payment agreement. The next week I got a letter from them stating that I have refused to pay and my account would be turned into credit bureau. I called them and they put a supervisor on the phone – she said that the agreement that I had has been going on too long and that it should have been paid off a long time ago and they tried to get me to set up payments then for $239 a month? I told them I could not do that I was out of work. I told her if it was going to be such a hassle just initiate the original payment agreement and I’ll figure it out somehow. They did for a 3 month agreement. Fast forward today – I get a call that they said 3 months are up and now they wanted $439 a month. Again, I’m out of work I told her. Continue with what we have on the same date and when I get a job we’ll look at it then but I’m out of work still and all I can scrape to pay is the $50. She tried to get her supervisor on the phone and then she called me back to say we can do a one time payemnt of $50. She said that the system wouldn’t allow it to continue in the $50 payment schedule – however it has been doing it for over 2 years.
    What can I do when next month comes up and they are telling me the same stuff? I’m tired of being harrassed about it when we had the arrangement prior – same agency.

    thanks!!

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