Do's and Don'ts when setting up recurring payments with a Debt Collector

[TNP]

Hello all,

This is my first post and I'm not certain of the protocol here, am I supposed to give a little history about how and why I got here, or should I just jump in with a question?

So as not to waste anyone's time I think I'll just ask my question and provide any perspective in later posts if needed. Here goes -

I have 2 large debts from credit cards that are being handled by different debt collectors. 1 has been with the same collector for over 2 years and the other has just been taken on by a new agency (the 2nd one for this particular debt).

I am not in a position to negotiate a final settlement with either of these collectors and must come to some terms with them for monthly payments. I see from reading some of the articles here that I should not negotiate with these agencies over the phone, too late I'm afraid where the 1st agency/debt is concerned, but I am not sure what other information I should/should not provide to the second agency as I start my negotiations.

Should I give them any information about where I work? And should I allow them to automatically debit my bank account? When they ask what the source of funds will be for the payment how should I answer? Am I correct in assuming that even if I am paying the debt off over time that I should correspond with the agency by mail and not by phone? And how do I find out if they are adding interest/fees/penalties to my balance?

Apologies if these are basic questions that have been answered time and again but a search of several variations on my subject title came up with no matches. So any help that any of you may be able to provide will be much appreciated.

So thanks for taking the time to read this and if you think there are some questions I should have asked but didn't please feel free to point them out. As I'm sure most of you know dealing with debt collectors is one of the hardest things to do and I'd kind of like to avoid making any more mistakes than I already have.

Thanks,

TNP

[chilton1]

Welcome to CIC TNP:)++

I am no expert so I will just give my .02 until the experts chime in.

Hello all,

I have 2 large debts from credit cards that are being handled by different debt collectors. 1 has been with the same collector for over 2 years and the other has just been taken on by a new agency (the 2nd one for this particular debt).

I am not in a position to negotiate a final settlement with either of these collectors and must come to some terms with them for monthly payments. I see from reading some of the articles here that I should not negotiate with these agencies over the phone, too late I'm afraid where the 1st agency/debt is concerned, but I am not sure what other information I should/should not provide to the second agency as I start my negotiations.

Should I give them any information about where I work?

No, it is not there business where you work.

And should I allow them to automatically debit my bank account?

No, would you give me your bank information so that I can debit from your account; Absolutely not. Who is to say they won't continue to take money from your account. Don't do it.

When they ask what the source of funds will be for the payment how should I answer? None of their business.

Am I correct in assuming that even if I am paying the debt off over time that I should correspond with the agency by mail and not by phone? yes always by mail

I hope you got an agreement that they will delete the negative information from your account.

And how do I find out if they are adding interest/fees/penalties to my balance? Is the balance increasing?

Apologies if these are basic questions that have been answered time and again but a search of several variations on my subject title came up with no matches. So any help that any of you may be able to provide will be much appreciated.

So thanks for taking the time to read this and if you think there are some questions I should have asked but didn't please feel free to point them out. As I'm sure most of you know dealing with debt collectors is one of the hardest things to do and I'd kind of like to avoid making any more mistakes than I already have.

Thanks,

TNP

When was the last time you made a payment toward the account---Date of Last Activity DOLA? New york statute of limitations is 6 years. and paid account are removed after 5 years.

Who is the Original creditor? Have the accounts been sold or is the collection agency collecting for the OC.

Was your agreement to pay in writing?

[nascar]

I am not in a position to negotiate a final settlement with either of these collectors and must come to some terms with them for monthly payments.

Never, ever, let a CA have access to your finances. If you insist on paying someone, send your money to the original creditor regardless of what they or the CA tell you. Make absolutely sure you know who owns the debt first.

[TNP]

Welcome to CIC TNP:)++

I am no expert so I will just give my .02 until the experts chime in.

When was the last time you made a payment toward the account---Date of Last Activity DOLA? New york statute of limitations is 6 years. and paid account are removed after 5 years.

Who is the Original creditor? Have the accounts been sold or is the collection agency collecting for the OC.

Was your agreement to pay in writing?

Thanks for replying chilton1. Your answers will be most helpful. Now to answer the questions you put forth -

I have 2 large credit card debts both with Chase Manhattan Bank as the OC. If you are asking when my last payment to them was - that would be sometime in early 2003, maybe May. I'd have to look it up. I assume it is this payment that starts the clock on the statute of limitations and not any payments I've made/am making to CA's?

I don't know the answer to your second question. I've never asked if the CA was assigned or had purchased the debt. Until reading things on this website I never knew that it mattered.

No, none of my agreements to pay have been in writing yet. That will change with this new CA that has contacted me. They've sent me 2 letters to which I have not responded yet, but now that I have some idea of what info I should not share with them I'm going to send out a letter to them this week. Hopefully I will be able to find a sample letter I can use here on the site.

Thanks again chilton1 for taking some time to answer my questions. It is appreciated.

TNP

[TNP]

Never, ever, let a CA have access to your finances. If you insist on paying someone, send your money to the original creditor regardless of what they or the CA tell you. Make absolutely sure you know who owns the debt first.

Hello nascar,

Thanks for the reply. Are you saying that even though my debt is being handled by a CA I should send my payments to the OC? I do have to find out who owns the debt, something I have neglected to do so far, but if I find that the debt has been sold wouldn't I have to send payments to the CA?

And you say "if you insist on paying someone". I acknowledge the debt as mine, are you saying I shouldn't be paying them off? That maybe I should ride out the statute of limitations?

I'm not trying to challenge your response here, just trying to understand what real options I do and do not have here.

Thanks again,

TNP

[nascar]

HeAre you saying that even though my debt is being handled by a CA I should send my payments to the OC?

If the OC still owns the debt, yes, absolutely. Both the CA and the OC may tell you that you need to deal with the CA, but the law allows you to send your payment to the original creditor until you have been given proof of assignment. With respect to CA's, even if you are certain that the CA is working for the OC, if you have doubts as to whether or not your money will reach the OC, the law still allows you to pay the OC.

[momof5]

Another FYI.... The SOL clock started with the May 03 payment UNTIL you paid the CA. ANY new payment or promise to pay in writing restarts the SOL clock!