What to do if I have been unable to pay a credit card after having numerous medical obligations and so I was contacted by a debt collection agency?

Get Legal Help Today

 Secured with SHA-256 Encryption

What to do if I have been unable to pay a credit card after having numerous medical obligations and so I was contacted by a debt collection agency?

I understand my obligations and set up a payment schedule for a $50 withdrawal every 2 weeks until the debt was paid in full. Recently, the company withdrew $500 from my account (10 times the agreed upon amount and a week early). I immediately contacted my financial institution to dispute the withdrawal, I also contacted the company to report this and I requested all previously recorded phone conversations. I’m still waiting for a call back. Of course this is a problem when I am living on a restriced budget and it put a burden on my family relationship (after asking for a loan from which my parents).

Asked on January 2, 2013 under Bankruptcy Law, Pennsylvania

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If there was an agreement in place and you were  honoring your obligations (e.g. making the agreed-upon payments) then the creditor or its collections agency is itself bound to the agreement and cannot seek or take additional money from you. If they try to do this, you could potentially enforce the agreement in court (i.e. by bringing a legal action.) However, if there was no actual agreement--for example: you were making payments, but they never actually agreed to that schedule or plan--or there was an agreement but you violated its terms, then they may be able to take legal action against you, which could in some circumstances include withdrawing money from your account (e.g. if there is any agreement you signed with the credit card issuer allowing them to do this; if there was a court order for a bank account levy or execution).


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption