Home » FAQ » Debt Collection » Can collectors refuse to give you (or agree to) a reasonable payment plan?

Can collectors refuse to give you (or agree to) a reasonable payment plan?

There is no law that I’m aware of that compells collectors, who own the debt, to agree to any payment plan! Don’t believe the myth that collectors, who refuse payments, forfeit their right to collect the debt and that the debt goes away. This is just not true!

Under those circumstances where collectors are working on behalf of a creditor, the collector is obligated to submit all reasonable offers to the creditor. In this case, only the creditor, has the right to refuse your payment offer.

Collectors who own debts can refuse your payment plan (and they usually do). However, collectors who refuse reasonable payment plans run the risk of losing their case should they pursue court action.

This is why it’s so important to put payment offers in writing and keep accurate records of all efforts to resolve the issue.

confidential informationThere may be instances where discussing your situation over a public forum could potentially compromise your interests. On these occasions we will contact you directly via email in order to answer your inquiry in a confidential manner.


  1. I have been making payments of 200.00 a month to a local collection agency on medical bills. They told me after this round of payments are made (November, only done for 6 months at a time) I will need to apply for a loan and show them the denial letter. Is this legal in the state of Wisconsin. I am trying to get our credit straighten up not ding it again. Any information would be appreciated!

  2. I had an account for dental work turned over to a collection agency. The dental work was for a temporary crown that the dentist said could not be filed with the insurance because they would not pay for the permanent crown. The permanent crown was dependent on the teeth tighting up to support it. The teeth never tightened up. So the permanent crown was never done I got dentures. I was making monthly payments to the collection agency. I was 3 days late on a payment and they stopped sending statements. When I called to find out why they said I made my payment late. And that it had been turned over to their legal department. They said to stop the process I needed to schedule 2 payments to pay it off 2 weeks apart. Is this legal.

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