Question
What is the best way to setup a payment arrangment with the collections agency?
I had a part-time home based business and owe $1,200 on an office supply store credit card. The company actually closed my account even though I was not late on my payment. I hadn't been doing business in quite some time and the bill ended up in an outside collections agency. I received a letter from them in August and received phone calls from them on a daily basis. There was an agent assigned to my account, but now it's been passed along to just anyone who answers the phone. I contacted them last week to discuss setting up a payment arrangment. They claim $50 is the minimum amount they can take, and they want it setup by using a checking account. I told them I could not afford $50 per month at this time, but would be willing to pay something. After arguing with the agent for 20 minutes or so, I told him I'd call back early this week to see what I could do. He kept mentioning that the credit reviews the accounts twice a month and will pull the account if they see they're not getting paid. So I figured I could afford $30 to $35 per month at this point. I called and the agent I'd previously spoken to was not available. I spoke to someone else. I explained, again, that I am not working so they wanted to "update" my information. They wanted to know my husband's name and his employer. My husband was not involved with the business at all and I don't want him to be tied up in it. They claim tha since I'm not working they need to know how I will pay. She also said just sending in payments won't secure anything unless it's with a checking account. She put me on hold and said neither her or her supervisor had the authorization to let me pay $30 to $35 per month. She suggested I leave a message for the agent I initially spoke to last week. I need to know the best approach to get an arrangment without giving them my bank account information. By the way, I used my tax id number to open this account. I never put my social security number down anywhere on the application as I didn't want to personally guarantee the line of credit. They have somehow pulled my personal credit and can see that most of my primary accounts (mortgage, car, personal credit cards) are being paid. Is this legal? I live in Texas.
1 month ago - 3 answers
Best Answer
Chosen by Asker
NEVER give out your checking account/bank routing numbers to debt collectors for making electronic debit payments. This is like giving the keys to your front door to a burglar. Once they have this info they can attempt to withdraw any amount from your checking account at any time. For collection agents who are desperately trying to make a quota and/or sales commission, it's simply too tempting to take more money out of your account. This always leads to an avalanche of bounced check fees. Pay only via USPS money orders. - Debt collectors do have the right to refuse a payment plan that is too small - If they keep making an issue of wanting your checking account numbers, tell them that you are officially documenting that they are refusing payment by a legal method (USPS money orders) and that you will be sending a certified letter to them as documentation.
by CatDad
1 month ago
Asker's Rating: 
Other Answers
Yes, it's legal. You spent the money and they closed the card for whatever reasons and you owe the money. It's pretty simple. They have lowered your payment to only $50 a month - while you can pay $30 or $35 then they are correct - that its going to negatively impact your credit rating and continue to do so. The fact that you opened it with your TIN means a couple things. They may be able to garnish any account that has your ssn if your ssn is the same as your tin. They also probably could get an order to garnish any account with just your ssn. They cannot garnish an account of your husbands if only his name is on it. If it's joint - that depends on a lot of things. They DO want your account number to auto debit it. They WILL auto debit it every month and attempt to do so regardless of if there are funds and legally can try several times each month for the funds, sometimes they will lower the amount being debited to try and get anything in the account. This can cause a cascade of fees on your account. I would recommend paying them.
by Figpickles- 1 month ago
Yes it's very legal for them to get your personal info as you owe the debt. As far as getting them to set up payments you can't force them to accept what you can pay but you can just send in the money. However it won't stop collection attempts so if you aren't making the min. payment they could still take further action against you even though you are trying to make a payment.
by Baby boy due March 7, 2010- 1 month ago