CC threating legal action

[lalakersfan32]

What is the name of your state?NM

When I got the CC I was living in NM, I recently moved to CA but I am not a resident of this state.

I just talked the the collector yesterday and she said that if I do not pay $500 per month, set up either a lump sum or payments for 3 months to pay off the debt completely they will take me to court and have my wages garnished. They say my minimum payments should be $500+ a month. I was also delinquent recently, but I just got a job and since then have been making regular payments. I only have $600 left a month on my paycheck after rent, utilities, car payment, etc. This $600 is for gas/food/other living expenses. If I make regular monthly payments by the due date on the bill and pay what I can afford, can they take me to court? I owe $3,200. I am also going to look into debt counseling to try and negotiate affirdable payments and to stop the overlimit fees and interest. They say they will garnish my wages up to 65% and could owe up to $20,000 if they take me to court and win. I don't know what to do short of bankruptcy.

 

[olgethorpe]

All of this depends upon how long its been since you made a full payment on the CC. When you say "collector", is that someone who actually works for the CC company, or a collection agency?

If its the CC company, ask to speak to a their "hardship" department and see if you can arrange a program with them.

If its a collection agency...don't talk to them on the phone. Never beleive anything they tell you on the phone...get it in writing. First off, they should have sent you a letter outlining the debt...send them a "debt validation" letter demanding proof that they have the right person, the right amount, and the right to collect. In the conversation you describe, if it is a CA, they already committed several violations of the Fair Debt Collection Practices Act. You can read a lot more about how to deal with a CA at www.creditinfocenter.com

 

[Anisah_H]

How long ago did you stop paying on this credit card? Of course they are going to try to get as much out of you as quick as they can. They cannot garnish 65% of your wages! I believe they cannot take more than 25%, but I may be wrong. $500 a month is outrageous. Don't talk to them on the phone, they can be such idiots!

The first response you received above gave great advice.

Anisah

 

[lalakersfan32]

Thank you both for your help.

It is a collection agency that I am dealing with. I missed 2 payments, but before that I was paying them monthly just not this minimum payment that they told me about, when I talked to them on the phone was the first time the $500 per month was mentioned. I have started to pay them on a regular basis again for the past 2 months. I didn't have a job before that so I didn't have any money to pay, I know that was bad, but I didn't think they would come at me like this.

 

[olgethorpe]

As I said before, you can't trust anything a CA tells you on the phone. Its entirely possible that they've been taking your money and its had absolutely no effect on your account. Stop talking with them on the phone. They have already commited several violations of the Fair Debt Collection Practices Act ("threatening actions they cannot or will not take", "overshawdowing", etc). You've already given them money so they're out to see how much more they can get.

Send them a debt validation letter CMRRR asking for proof that they have the right person, the right amount, and the right to collect. Think of a CA as somebody coming up to you on the street and saying "hey, we know you had a visa card and you owe them money...we're collecting it...pay us a bazillion dollars or we'll take you to court". Maybe you did have a credit card, but that's no reason to hand these people money.

CAs depend upon intimidation and upon debtors not knowing their rights. Go look at www.creditinfocenter.com for more info on how to deal with these people.