I posted a qυеѕtіοn regarding collections calling аbουt a debt thаt hаd bееn charged οff frοm Chase. Thе company calling іѕ Client Services Inc. States thаt thеу didn’t bυу thе debt frοm Chase thеу′re collecting fοr thеm period.
I researched debt consolidation companies, аnd called friends whο hаνе dealt wіth thіѕ, аnd CareOne Credit Counsel wаѕ ultimately choosen. Thеу wеrе very kind аnd professional. At thе еnd οf thе counsel session, going over ουr budget etc…wе set everything up, аnd thеу gave mе a number fοr collections tο call іf thеу called again.
Ofcourse thеу called, I tοld thе collector whаt wе hаd done аnd thаt CareOne wουld bе paying thе original creditor. Thаt wе wanted tο pay thіѕ οff аnd thіѕ wаѕ thе οnlу way wе сουld. Thеу stated thеу wouldn’t work wіth thеm, nο way, аnd wе hаd tο pay thіѕ οff now, οr face legal action.
Thеу ѕау thеу work fοr Chase, thеу hаνе thе charge οff turned over tο thеm. Nοt bουght bυt turned over. I don’t know whο tο believe here. Thе careone credit solutions whο states thеу dο thіѕ аll thе time аnd gave mе proof, οr thе collections people whο ѕау, thеу gave mе a settlement, bυt never gave mе anything іn writing аnd even now don’t want tο ѕіnсе I ѕаіd wе don’t hаνе thе money rіght now.
Whаt dο I dο here??? Thіѕ іѕ ουr οnlу ding οn ουr credit. Wе аrе military аnd οn a SLIM budget. I јυѕt wonder іf someone out thеrе hаѕ dealt wіth a situation lіkе thіѕ? Whаt tο dο, whο tο believe???
Tags: Calling, Collectors, companies, deal, Debt, Don't, payment, plan, saying, They
Do not talk to the collection company.
If they say they don’t deal with payment plan companies, say, “Well, I don’t deal with collection companies. ” Then hang up.
You will not face legal action. It would cost them too much and if you go to court you will win because of you payment plan.
Their only tactic is to intimidate you. If you don’t talk to them, their intimidation cannot work.
As a standing rule, I dont deal with collections agencies. Until I got wise, I was oppressed by them too. But, now its been a world of difference. When (IF) you take a call from them, BEFORE you verify who you are or give any information at all- demand that they give you their name, the company they work for, address, phone numbers– upfront. If they resist, simply terminate the call. IF they give up the intel, then you tell them in no uncertain terms to not call you any more and that you will deal with your debt directly with the original creditors and that if they do call you again they are in violation of the law and they will be reported- and if you have the time- they would be sued for harassment. I did it one time and got 1000 out of them in small claims for their repeated calls after I told them to stop calling. Then send over this letter (some form of verified mail):
[Caption]
RE: Collection of account [whatever it is]
Dear Sir or Madam (specific names are better):
You are hereby notified under the provisions of Public Laws 95-109 and 99-361, also known as the Fair Debt Collection Practices Act, that your services are no longer desired.
You and your organization must cease and desist all attempts to collect the above debt. Failure to comply with this law will result in my immediately filing a complaint with the Federal Trade Commission and this state’s Attorney General’s office. I will pursue all criminal and civil claims against you and your company.
Let this letter also serve as your warning that I may utilize telephone recording devices in order to document any telephone conversations that we may have in the future.
Furthermore, if any negative information is placed on my credit bureau reports by your agency after receipt of this notice, this will cause me to file suit against you and your organization, both personally and corporately, to seek any and all legal remedies available to me by law.
Since it is my policy neither to recognize nor deal with collection agencies, I intend to settle this account with the original creditor.
Sincerely,
———————–
At this point, the collections agencies may not contact you any more. Then contact your original creditors. If need be, design your own payment schedule and send payments to the original creditors (keep copies of EVERYTHING) until it is paid. Your first letter to the original creditor should state that you do not deal with collections agencies and there is no law that requires you to do so. Outline what your payment schedule would be and enclose the first payment. Tell them if THEY wish to forward your payment- then they can, but you will only pay what you owe the original creditor and that you will never deal with any other entity and if the original creditor returns any payment to you at all then you will consider the acct settled and paid in full. Tell them that If any negative information appears on subsequent credit reports, then you will go to small claims over it. REMEMBER that they can’t MAKE you pay- so you’re in the position of strength. And, be ready to stand up for yourself, or you will always be taking the soft approach of retreating, tolerating insults to your dignity, and changing your phone number every six months due to the harassing calls.
The truth of the matter is that they (the collections agency) DO NOT have to follow the FDCPA if they are a part of Chase (considered in-house collection).
The Fair Debt Collection Practices Act DOES NOT apply to major credit card banks? It applies only to the collection attorneys and professional debt collection companies they might hire. Original creditors are regulated by state law; however, the major credit card companies follow policies that closely mirror those of the FDCPA and will comply with your request to stop phoning you at home and work, etc. , just as if you were dealing with a collection service. If you believe you have been harassed by an original creditor, or that the original creditor has done something illegal or threatening towards you, then research your state laws on the subject and contact the proper authorities to file a formal complaint. Typically, the Attorney General in your state is the proper authority to contact.
Also the OC (original creditor) or a collection agency as well as an attorney does not have to agree with any payment programs or settlements as offered by those counseling services.
Here is a link to the FTC explaining what to watch for in regards to debt consolidation, credit counseling, and debt negotiations programs
http://www. ftc. gov/bcp/edu/pubs/consumer/credit/cre19. shtm
Also, if you or your spouse is active duty then you qualify for help from the Soldiers’ and Sailors’ Civil Relief Act of 1940, you may qualify for any or all of the following:
Reduced interest rate on mortgage payments.
• Reduced interest rate on credit card debt.
• Protection from eviction if your rent is $1,200 or less.
• Delay of all civil court actions, such as bankruptcy, foreclosure or divorce proceedings.
To learn more about these or other provisions of the Soldiers’ and Sailors’ Civil Relief Act, contact your unit or installation legal assistance office.
Hope this helps with your question
It would help if you clarify the following:
Are you in a debt settlement or a credit counseling program? There’s a big difference between the two: Credit counseling is when the company negotiates reduced payments/interest rates with all your creditors, then they take a monthly payment from you then distribute the money to the creditor every month until the accounts are paid off.
Debt settlement is where the company you use deliberately withholds payments to your creditors to let all your accounts default so that they can negotiate settlements on the account. . . In the meantime, they take a monthly amount from you to go towards a “settlement” at a later date in the future. Debt settlement is a risky move and not all creditors will play this game.
It’s hard to give you more advise until you clarify what type of program you are in. . From your posting I get the impression that you are in a debt settlement program. FYI: Your creditors are not obligated to participate in any credit counseling/reduction program you use. . . and it’s perfectly within their right to serve you paper and take you to court.