If I have a debt with a company and have been making payments but they are trying to turn me into collections, what can I do?

Get Legal Help Today

 Secured with SHA-256 Encryption

If I have a debt with a company and have been making payments but they are trying to turn me into collections, what can I do?

I recieved a letter 7 months ago stating they wanted a higher amount each month. I responded to the letter with a counter offer but did not recieve an response. So I continued to pay the amount that I had always been paying. I now recieved a letter stating they were turning me into collections. Can they legaly do his? I have no contract signed with them or no agreement to an amount due each month.

Asked on December 9, 2011 under Bankruptcy Law, Washington

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you had an agreement with the creditor (or its collections agent) about how much you would pay per month, then that agreement is enforceable; as long as you honored your obligations (e.g. paid the appropriate amount, on time), they could not increase what you owe.

But without an agreement, a creditor is entitled to payment in full when due; they are not required to accept anything less. Therefore, if  you have been voluntarily making payments but they did not agree to that schedule or payment plan, they are not bound to that schedule or plan--they may demand that you pay more, or even that you pay it all at once, and they may sue you if you neither comply with their request nor come to some agreement with them.


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