Collection Agency Refuses to Negotiate

[Rebecca55]

California. In an attempt to make payments to all my creditors, some of which had gone to collections, I consolidated all my bills. Two months went by and I noticed that four creditors (those gone to collections specifically) had not formally agreed to the payments being sent. So, one by one, I contacted each to make sure the payments were sufficient and to receive a statement. One in particular said that the payments were not sufficient and that if I didn't pay the full amount $1,728.00) in one month they would take me to court. I asked if we could negotiate something; some sort of payment plan we could both live with. They demanded that I send them my paycheck stubs and budget so that they could determine what payments could be made. My first question is, can a collection agency demand to see such private information as a requirement to arranging payment? When I offered to have my credit card consolidation company send it to them (as they already had it) I was told that they refuse to deal with 3rd parties. In any event, I offered them the best I could do which would be monthly payments to have the debt cleared in one year. I was told this is completely unacceptable and that a judgment would be entered against me. My second question; should I go to court to fight this or is it better to have it mediated? The mediator requires $525 and, if I had that, I would give it to the creditor! Also, because the creditor has already accepted two payments, does that help my case that they have in fact accepted what I've been able to do thus far? To give you an idea, my payments were $54 and $60 respectively. I offered them $139 each month instead; which they turned down. Should I go to court or mediate?

 

[nissandave]

First thing you should do is realize that ALL so-called credit consolidation companies and the like are scumbags, liars, and idiots who WILL SCREW YOU OVER 100% OF THE TIME!

Read this:

https://forum.freeadvice.com/showthread.php?t=156611

"My first question is, can a collection agency demand to see such private information as a requirement to arranging payment?"

Yes, they can do this to make sure you are not trying to shaft them. Remember, it is you, not them, that is defaulting on the original agreement.

"My second question; should I go to court to fight this or is it better to have it mediated?"

Fight what? You have no basis to fight anything. Your creditors can accept partial payments and not waive their rights to the remaining amounts. Mediation, IMO, in your case would be a joke. If you cannot work anything out ON YOUR OWN with the creditors, I would consult with a bankruptcy attorney. In any case, tell the credit consolidation company to go somewhere where the sun doesn't shine.

 

[Ladynred]

Geez.. what a crock !

One in particular said that the payments were not sufficient and that if I didn't pay the full amount $1,728.00) in one month they would take me to court. I asked if we could negotiate something; some sort of payment plan we could both live with. They demanded that I send them my paycheck stubs and budget so that they could determine what payments could be made

NO !!! They can NOT demand that kind of information ! They have no right at all ! Its not up to THEM to determine what your budget can bear, its YOUR budget and YOU are ultimately in the drivers seat - for now. They can't just 'enter a judgment' against you they HAVE to go the the legal process of suing you - and that could take months. Sounds to me like arm-twisting. Depending on who the creditor is, that's not a lot to be suing over and most won't, especially if you have few assets.

My second question; should I go to court to fight this or is it better to have it mediated?

I do have to question the mediator, the creditor does NOT have to agree to that at all and it would be costing you all that money. You can continue to negotiate IN WRITING and keep sending them payments if they're accepting them. Their first response is ALWAYS going to be 'we want it all NOW or else'.

The only thing dave said that I agree with is that these debt 'consolidators' are 99.9% scam and they won't help you enough - and they're damaging your credit while they make you pay for them to handle your bills.

 

[rebootit]

Also remember that if this debt has been sold to a CA then YOU are now the customer of that CA. You have what they want (money) and you are willing to pay what YOU can afford. Continue to send what you can afford and don't worry about it. You don't need to pay someone else to mediate for you, do it yourself and in writing.
If they get nasty so what. Send your payments and send it with a note that if the amount sent is not acceptable then they can return the money to you. My bet is you will never have a payment returned.