Can a collection agency file papers to take me court if I have been making payments to them?

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Can a collection agency file papers to take me court if I have been making payments to them?

I have been making monthly payments of $25 a month to a collection agency for the past year. Now they are trying to serve me court papers. I have made all the payments on line and they have pass through my bank account. They want me to make payments of $100 a month and I told them way back I could only make small payments of $25,so the past month they have been trying to serve me papers but I still have not received them. I did call them and let them know that I have been making payments to them but they still want to take me to court. Can they do this if they have been taking the payments all year long? I didn’t sign any agreements either for $100 payments.

Asked on January 25, 2012 under Bankruptcy Law, Oregon

Answers:

Trevor Clement / Law Office of Trevor A. Clement, LLC

Answered 9 years ago | Contributor

Yes, they can, unless they agreed not to.  You don't specify what kind of debt it is, but let's assume it's a credit card debt.  You agreed to make the required minimum payments on the card and you failed.  True, you're making some payments now, but that doesn't change the fact that you did default.  Also, I'm guessing that the $25 is less than what your monthly bill would be.

Look at it this way: say you lend somebody $1,000,000 and they promise to repay you $10,000 a month.  They miss the first six payments, then start sending you $1 a month.  Yeah, they're paying you, but not enough; they broke the terms of the deal.  Same situation.


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