Collection agency vs Original debtor issues.. help? (credit report, debt, payments)

[deerislesmile]

I have a cc account that has been in collections for a few months. The balance/card limit is actually quite low, but we are just very broke through last winter and I missed some (even minimum) payments. I know, I know- I should have made the minimum, but when there is no money, there's still no money for bills... Anyway- I made 2 payments through the agency (May, June,), and just as soon as the last payment went through, they were hounding me again (literally- the day after the $100 payment was posted), telling me that they need AT LEAST $137 as a minimum payment (or WHAT will happen, i don't know, but they seemed pretty intent on that $137 figure).

Kind of curious about my account status, I logged on to the actual cc company (original debtor) site/my account. THEY have my account listed (accurately) as actually about $20 under the credit limit (WOOT! That was nice to see.. at least it's not over the credit limit!), with $20 credit/cash available and with a monthly minimum payment due of $15 (vastly different than $137?).

So I called the CC company and attempted to ask my Middle Eastern service technician ( *roll eyes* ) why there was the discrepancy in the minimum payment due, and if they account was current. He did not come close to understanding what I was asking, but kept telling me that I should trust the collection agency (yeah, I don't think he lives in the US..) with whatever they have listed as the current balance and payment due, because they have more current information about pending charges than does the actual cc company. ??? I haven't used the card in at least 6 months, so there are no pending charges over than late/over-the-limit fees, but I have been making payments, so those wouldn't even be there. But I was specifically asking about the discrepency concerning the minimum payment due- which is it? And he could not logically answer the question- he kept repeating that I should trust the collection agency and make whatever payments they are asking for. (Yeah, right- because they have MY best interests in focus? I don't think so...). After talking in circles for about 10 minutes, I gave up on him giving me any accurate information.

I (maybe being a bit underhanded..) made the $15 minimum payment on the actual cc website, and then scheduled 3 more for the upcoming months...

So my question is.. How can the minimum payments be listed so differently, and if I make the minimum payment listed on my statements from the actual cc company (both paper and electronic statements say the same thing) as opposed to the $137 the collection agency is demanding, did I actually make the minimum payment, or is my account still delinquent?

Most of the time, I can figure these things out easily, and take ALL of the credit (npi) for my current state of financial affairs, but this is just confusing me...(And I would rather not call the cc back again and get another, and another, and yet another service agent that I can't freaking understand.)

I am trying to make good on bad accounts, but there is only so much money in the cookie jar, KWIM? I hope to have this particular account paid off by the end of the year, but I can't be alloting $150/month to it right now, especially if I can still be "current" by making a smaller payment.. If I make the minimum $15 payment that the cc company is asking for, and not the $137 the ca is asking for, will that reported as a delinquent payment, or not?


Any thoughts, expertise, or directions you would like to point me in for an answer?

Thanks..

DIS

(edit- WOW! Sorry that's SO long!)

[Hawkeye48]

The collections agency is taking advantage of you. The guy you are dealing with is most likely working on a commission basis. Take the time to read up on the Fair Debt Collections Practices Act. If the debt hasn't been actually sold to the collections agency you have to right to deal with the original creditor. From what you said in your post it sounds like the debt wasn't sold to the collections agency but just assigned to them for collections purposes. If so, under federal law you can send them a CEASE AND DESIST letter by registered mail telling them they are no longer authorized to contact you. If they contact you by phone tell them you are settling this with the orginal creditor and they are no longer authorized to contact you. Look up your rights on the Internet, you have the right to not deal with this bill collector. Look it up on the Internet for sample CEASE AND DESIST letters, they are all over the place. Then contact the original creditor and tell them you will work out the payments with them. If necessary keep asking for the persons supervisor until you get someone that can speak English. I'm not an attorney so take what I say with a grain of salt. Look up your rights on the Internet, collection agencies can be ruthless in what they do. Frequently using unlawful tactics. Good luck with this.

[Karla with a K]

deerislesmile
When I call a company and realize that I have reached the "outsourced" office I request to speak to someone in th US. I keep repeating this until I am transfered.
The one thing that wasn't clear is if the account was "charged off" that you will be able to tell once you have spoken to someone who understands your questions.
another thing depending on the balance the only option they would have if you don't agree to the payment you want is to try to go for judgment but if you have a low balance it would not be worth it to them.
Get some more info
they we can look at options

[bubbagirl]

The FDCPA is very clear that all formal requests on the account are done in written form, and then of course, you keep a copy of that letter. The C&D letter only protects you from phone calls, they are still entitled to send you mailings. If, upon receiving the C&D letter, the collection agency contacts you over the phone after they have obviously received the letter (I would send it certified with a card sent back with signature), they are then liable for breaking the law and you can sue them. If you so desire, you can hold them liable up to a certain amount of the debt (I can't remember if it is 100% or a 110%... something like that).

Again, as mentioned, get in contact with the CC issuer. Chances are good they will want to transfer you to the outsource company, but you do have a right to deal with them to at least get your questions answered. I highly doubt it has been sold, and if it is showing an available balance, it is not charged off. I suspect the $137 was a commission based figure, not the actual. As a creditor, they cannot refuse any payment you make, whether it be $10 or $1000. Just keep good payment records.

[renriq02]

If your account is with a collection agency then it was sold off.
This means that the creditor wrote off your debt, and generally no longer services the debt. Your credit report will show 'chargeoff' next to the item

If you send a payment to the creditor, they will forward it to the collection agency.

I wouldnt send payments anymore until they send a payment plan in writing or a payoff.

Collection companies buy debts for less than 10cents to a dollar.

If your debt was 1000, they would've bought it for 100.
You can negotiate to pay to at least 30 cents to a dollar.

PM me if you need extra info

[GreenMachine]

Originally Posted by deerislesmile

I have a cc account that has been in collections for a few months. The balance/card limit is actually quite low, but we are just very broke through last winter and I missed some (even minimum) payments. I know, I know- I should have made the minimum, but when there is no money, there's still no money for bills... Anyway- I made 2 payments through the agency (May, June,), and just as soon as the last payment went through, they were hounding me again (literally- the day after the $100 payment was posted), telling me that they need AT LEAST $137 as a minimum payment (or WHAT will happen, i don't know, but they seemed pretty intent on that $137 figure).

Kind of curious about my account status, I logged on to the actual cc company (original debtor) site/my account. THEY have my account listed (accurately) as actually about $20 under the credit limit (WOOT! That was nice to see.. at least it's not over the credit limit!), with $20 credit/cash available and with a monthly minimum payment due of $15 (vastly different than $137?).

So I called the CC company and attempted to ask my Middle Eastern service technician ( *roll eyes* ) why there was the discrepancy in the minimum payment due, and if they account was current. He did not come close to understanding what I was asking, but kept telling me that I should trust the collection agency (yeah, I don't think he lives in the US..) with whatever they have listed as the current balance and payment due, because they have more current information about pending charges than does the actual cc company. ??? I haven't used the card in at least 6 months, so there are no pending charges over than late/over-the-limit fees, but I have been making payments, so those wouldn't even be there. But I was specifically asking about the discrepency concerning the minimum payment due- which is it? And he could not logically answer the question- he kept repeating that I should trust the collection agency and make whatever payments they are asking for. (Yeah, right- because they have MY best interests in focus? I don't think so...). After talking in circles for about 10 minutes, I gave up on him giving me any accurate information.

I (maybe being a bit underhanded..) made the $15 minimum payment on the actual cc website, and then scheduled 3 more for the upcoming months...

So my question is.. How can the minimum payments be listed so differently, and if I make the minimum payment listed on my statements from the actual cc company (both paper and electronic statements say the same thing) as opposed to the $137 the collection agency is demanding, did I actually make the minimum payment, or is my account still delinquent?

Most of the time, I can figure these things out easily, and take ALL of the credit (npi) for my current state of financial affairs, but this is just confusing me...(And I would rather not call the cc back again and get another, and another, and yet another service agent that I can't freaking understand.)

I am trying to make good on bad accounts, but there is only so much money in the cookie jar, KWIM? I hope to have this particular account paid off by the end of the year, but I can't be alloting $150/month to it right now, especially if I can still be "current" by making a smaller payment.. If I make the minimum $15 payment that the cc company is asking for, and not the $137 the ca is asking for, will that reported as a delinquent payment, or not?


Any thoughts, expertise, or directions you would like to point me in for an answer?

Thanks..

DIS

(edit- WOW! Sorry that's SO long!)

don't make payments to a collections agency. Only deal with the original debtor. Send the collections agency a cease and desist letter so they stop harassing you. Check out Bud Hibb's website.

greenie

[renriq02]

PM me if you need the cease and desist letter

[Karla with a K]

Originally Posted by banker0679

If your account is with a collection agency then it was sold off.
This means that the creditor wrote off your debt, and generally no longer services the debt. Your credit report will show 'chargeoff' next to the item

If you send a payment to the creditor, they will forward it to the collection agency.

I wouldnt send payments anymore until they send a payment plan in writing or a payoff.

Collection companies buy debts for less than 10cents to a dollar.

If your debt was 1000, they would've bought it for 100.
You can negotiate to pay to at least 30 cents to a dollar.

PM me if you need extra info

"If your account is with a collection agency then it was sold off."

Sorry but that is not completely correct information.

At 180 days a creditor will charge off your account at this time it will be reviewed and one of 3 things will happen.
1. It will be assigned to a collection agency with the original creditor still owning the account. A creditor may assign it to up to 2 agencies before selling.
2. It will be reviewed for litigation
3. If it is a very small balance it maybe sold right away.

Accounts are sold anywhere from 50cents on the dollar to 10cents on the dollar. It will all depend on the age and amount of the account.


As far as settlements, it again will depend on if the agency "owns" the account or is just servicing the account for the creditor.
An agency who is just servicing the account maybe allowed to accept up to a 75% settlement without having to present the settlement request to the creditor.
An agency who has bought the account has more leeway.
One thing to keep in mind is when dealing with a collector who is working for the agency who has bought the account,is the collector make bonus on what they collect so they will try to settle for as much as possible.

This information comes from having over 30 years in the credit,litigation and foreclosure industry
According to your home page I see you are a Mortgage Broker so I can see how we would look at credit situations differently.

[renriq02]

sorry but i cant argue with 30yrs experience!

i made a general statement concerning her situation, but you're right!

Originally Posted by myfask

"If your account is with a collection agency then it was sold off."

Sorry but that is not completely correct information.

At 180 days a creditor will charge off your account at this time it will be reviewed and one of 3 things will happen.
1. It will be assigned to a collection agency with the original creditor still owning the account. A creditor may assign it to up to 2 agencies before selling.
2. It will be reviewed for litigation
3. If it is a very small balance it maybe sold right away.

Accounts are sold anywhere from 50cents on the dollar to 10cents on the dollar. It will all depend on the age and amount of the account.


As far as settlements, it again will depend on if the agency "owns" the account or is just servicing the account for the creditor.
An agency who is just servicing the account maybe allowed to accept up to a 75% settlement without having to present the settlement request to the creditor.
An agency who has bought the account has more leeway.
One thing to keep in mind is when dealing with a collector who is working for the agency who has bought the account,is the collector make bonus on what they collect so they will try to settle for as much as possible.

This information comes from having over 30 years in the credit,litigation and foreclosure industry
According to your home page I see you are a Mortgage Broker so I can see how we would look at credit situations differently.

[Karla with a K]

Originally Posted by banker0679

sorry but i cant argue with 30yrs experience!

i made a general statement concerning her situation, but you're right!

no problem at all banker

lol my hubby calls me a "credit geek" he says "never ask her about credit, you will get way more info that you expected.
One of my "hobbies" is helping friends and friends of their's get out of debt, lol see why hubby calls me a credit geek

Thats the nice thing about this board everyone brings their expertise with you being a Mortgage Broker you can offer loads of information to folks looking for help in that area. When you consider how many first timers don't realize they don't have to necessarily take the first offer form a mortgage company I can see you being such a helpful poster.

Hey one thing I am curious about is that 3 day cleaning up your credit thing you mentioned. If you have time could you PM me with this.
thanks
karla