CitiFlex

[pasha888]

I had a CitiFlex card which was turned over for collection to Rausch, Israel and Hornik, collection attorneys.

I have offered to make payment arrangements with them since they first called about 2 months ago. Every time they call, I make the same offer. They say they will only accept full payment.

Now I received a call that they are going to "push service", whatever that means. No lawsuit has been filed against me.

I offered to pay $500 per month on a $6,000 debt. I don't think that's unreasonable. They said I can pay whatever I want and it will be credited to my account but they will still pursue a judgement or stipulation.

Is there anything I can do about this? I can't do more than offer to pay the debt.

Thanks.

[BTO429]

FDCPA section § 1692 e(5) a collection agency may not threaten to take any action that cannot legally be taken or that is not intended to be taken

[chrismg]

Most CAs will not do protracted payment arrangements over 6 months or more. Believe it or not, they'd more than likely take a $3,000 settlement now...than the prospects of getting the entire $6000 throughout a 1 year period.

I'd save that 500 dollars a month and in 4 months call em and see if they'll settle for 2k. If they won't then call em at 6 months and see if they'll settle for 3k, which they most likely will.

[pasha888]

Thanks so much for the prompt reply.

They are threatening to sue me. I'm trying to avoid that. Will they sue me even if I have offered to pay off the debt?

Also, what does the "push to service" mean? I checked with our county district court and no lawsuit has been filed. The collector said I could be served even if a lawsuit hasn't been filed, but according to the district court, it's the other way around - they have to file a lawsuit before service.

Also, how can I be sure that they don't intend to sue?

I had financial problems for a few months. I dealt with each creditor successfully and committed to payments every month. CitiFlex however turned it over to collection before I even had a chance to come to an agreement.

I could save the $500 for six months and then offer to pay but I don't want to be sued in the meantime.

Thanks for your help and Semper Fi (Marine Corps family).

[pasha888]

Also, what would happen if I just paid $500 per month to CitiFlex directly. I called them but they turned me over to the collection agency. Can a collection agency sue if you're making payments every month?

[Debt Guy]

They are threatening to sue me. I'm trying to avoid that. Will they sue me even if I have offered to pay off the debt?

Depends. No creditor is obligated to negotiate with you. If the debt is in default, the creditor may demand payment in full immediately.

Also, what does the "push to service" mean? I checked with our county district court and no lawsuit has been filed.

I've never heard the term before. Sometimes collectors make up nonsense terms that sound scary for the obvious purpose of creating a sense of urgency. Or, it could be a term peculiar to the court system in your state.

The collector said I could be served even if a lawsuit hasn't been filed, but according to the district court, it's the other way around - they have to file a lawsuit before service.

You are correct. the collector is either misinformed or full of it.

Also, how can I be sure that they don't intend to sue?

You cannot unless you are a mind reader. Technically, the collection agency cannot file a lawsuit as they have no standing. Only the creditor can file a lawsuit and they do so through their attorney.

Also, what would happen if I just paid $500 per month to CitiFlex directly. I called them but they turned me over to the collection agency.

Well, that tells you something. They don't want to deal with you.

Can a collection agency sue if you're making payments every month?

Yes, the creditor can sue you even if you are making payments. The payments do not cure the default.

However, you reduce the likelihood of a lawsuit if you are making large regular payments directly to the creditor. If I were you, I would not send payments to the CA -- send them directly to the creditor.

[pasha888]

Thank you for the advice. I am going to start making payments directly to CitiFlex and see if they accept them.