Please help me on this payment problem...in collections

[rookiegirl77]

At the end of August I sent a letter and payment to a collection agency, stating my terms on paying off the amount. When they received it the account, I owed close to $3K which I cooperated in paying $1600. But after that I couldn't pay any more large sums. In August I owed $1300. I sent them a letter, signifying what I had paid previously and my cooperation in paying. I said that I would pay $75, which is honestly all I can afford right now, with all my other bills. (They wiped my savings with the amount I paid before). I said I would make the payment each month by a certain date and sent the payment which they cashed. Then last month, I sent a second letter with my payment. I sent the payment as I agreed and added the note "Upon cashing this check, you continue to agree to the notice I sent on 8/30/2004 for this payment plan. Thank you." They cashed this check on 10/1/2004.

Today, I received a notice which was written on 10/4/2004 (so after they cashed the second check), stating that I owe $125 as agreed by the 17th of the month or I am in default. I owe $1250 about now. I can't afford the amount difference, because I am already scraping by with food and stuff and I can't pay it on that date (alot of bills are due then).

Because I said on cashing this check you agree to the payment, does that bind anything?

Can I continue with what I agreed?

I don't know what do to.

Thanks.

[anti-something]

1. in default of what? its already in collections.

2. did you write the endorsement on the check? some states allow those, some dont, check your state laws.

3. what are they going to do? sue you? you can show you have been paying, had what you thought was an agreement, so even if they do sue, you can go to court and say i dont know what more these people want from me, here is what i can afford, which is what i have been paying them. so even if it went that far the judge would prolly tell them off and you would be back on your prior arrangement.

4, ALWAYS pay your other bills and eat first! anything else comes second or third.

[rookiegirl77]

So I should just carry on as I was doing? Do I need to state anything in a letter?

[anti-something]

i would send a letter reiterating your prior arrangement, and that you intend to hold up your side of the arrangement, which was $75, along with copies of the letters you sent to them, and always write the arrangement on the memo of the check

then, depending on if you are sure about the debt being yours and the amount being correct;

if you arent sure, demand validation.

if you are sure demand an updated statement showing all your payments

and make sure you keep exceptional records of all your payments.

[LadynRed]

What state are you in ?? Restrictive endorsements are NOT enforced in all states.

[Recovering Attorney]

Send them a letter reiterating your history with them, including copies of checks and letters. Reiterate you will pay them $75.00 a month, as that is what the two of you agreed to, and by asking for $125.00 they are harassing you. state that the letter invokes your rights under the state and federal FDCPA. CC: your State Attorney General and the FTC. That should keep them at bay.

[rookiegirl77]

Thanks for the advice. I will continue with the payments I have been making. From what I gather, I understand that I if I continue to cooperate, then they won't have anything to hold up if they take me to court which I don't think they will. They just want to get me taken care of and not have to wait for all my payments to come through. I will send a copy of the two previous letters, as suggested, along with my October payment and then demand a statement of all my payments. I have record of these, but I will still demand their statement. If I am cooperating and doing all that I can, what more can they ask for. Plus the amount I owe is not that outrageous. $1200 of $2900 is good.

Thanks.