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Advice Team Responses
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Dealing With Debt: Partial Payments |
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I had trouble in the past paying a large bill and the creditor was letting me pay a lesser payment. Last month, I sent them the smaller payment and they called demanding more money. Why? Of course, I don’t have anything in writing. -Cherie |
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Dear Cherie,
Since you have been paying on the debt regularly and your collection agency is suddenly demanding higher payments, you should consider sending a letter explaining your situation. Tell them that you are unable, not unwilling, to repay in full at this time. Also, keep sending what payments you can; many creditors will apply them.
Good luck,
The Advice Team |
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I have a question in regards to a payment which I am trying to make. I have inherited a bill from a divorce which I thought was paid off. Subsequently, I discovered that there is a remaining balance and the account has been sent to an outside agency. I have been trying to make restitution on this account but they will not take my money and I do not know what to do. Is there any guidance which you can offer? -Michael |
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Michael,
Since the collection agency does not accept your payments, you might wish to explain (in writing) that because they refuse to accept your regular payments, you have no choice but to terminate the relationship. You have the right to ask them not to contact you again unless it is to inform you that they will accept your previous payment amount or that they intend to take other actions as outlined in the Fair Debt Collection Practice Act. If the collection agency decides to take legal action, be prepared to prove your efforts to resolve this issue. Keep detailed records of all correspondence and payments concerning this account. An attorney can better help you to understand your rights and responsibilities.
The Advice Team |
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I owe a debt to a collection agency. I offered them a payment plan, but they refused it. The collector said, "that's to little, we have to have at least twenty five dollars a month." If a collector refuses a payment plan, does debt become void? -Cheryl |
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Cheryl,
Even if the creditor refuses your payment plan, you still owe the debt. That being said, many collectors will apply partial payments if you send them. I recommend that you send what you can. I also recommend that you begin communicating with the creditor in writing. Keep copies of all correspondence for your files.
Good luck,
The Advice Team |
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