Q & A: Q: I have made payment arrangements with a debt collector but they have started taking more than what we verbally agreed upon. I have closed my bank account and written them to validate the debt; they wrote back that they dont have to because I paid them; is this true? A: Wow, something is in the air, huh? Youre the 3rd person since Friday that has had this dilemma and contact me - giving a collection agency access to your bank account. THIS IS A HUGE NO NO. Thats like giving a crack head access to your purse, or house; or anything really - super ghetto analogy I know but please believe most collection agencies are just as thirsty. It depends on state law. You didnt tell me what state youre in or how old the debt is but according to some states if you pay anything towards an old debt youve just extended the statute of limitations (WI); thereby giving the collector more time to sue you. In other states the payment agreement must be in writing (IL - did you sign anything?) and in other states you can still validate no matter what you paid (i.e. TX) So... it depends. Im sorry you went though this. The best advice I can give you is to call your bank dispute the auto withdrawal (takes 60 days) and blast the collection agency for not keeping its agreement. Im glad you closed the acct; thats always my first move. BUT now you have to deal with the repercussions - if any - of paying the debt; you may have just given them some additional years to sue you for a judgment. I would get your control back. You paid them now; theyre coming for you; please believe. I would just use that Income Tax return youre more than likely looking forward to and determine a settlement amount to be considered as Paid In Full and negotiate a complete deletion from credit report if theyre reporting. Start at 75% off of full price and go from there. The full payment amount is NOT an option. I wish you would have contacted me prior to frown emoticon Wish you the best!
Posted on: Tue, 20 Jan 2015 23:24:26 +0000
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