Making Payments--Can they still sue?

I stopped paying on a Home Depot (Citibank) card that I had. I didn't pay for about 8 months. I then contacted them to make some type of payment arrangement. The account was then with Redline and they accepted me paying $50/month.

I did that for a little over a year and then I noticed that one of the post dated checks wasn't cashed. They told me my account had been moved to another agency (ARS National.

I contacted ARS to set up the same arrangement, but they told me they wouldn't accept $50/month. The only thing they would do was to settle out for $2700 or pay the $4700 balance in full. I explained that I couldn't do that and could only afford $50/month.

They wouldn't accept this, but since September I have been sending them $50/month regardless. They are cashing the checks and applying the $50 to my account, but they keep telling me that this isn't acceptable as a payment arrangement. They said that my account will probably end up moving forward and they weren't sure what would happen with it. They were eluding to the fact that I would be sued, but wouldn't actually say those words.

I know that anyone can be sued at anytime for anything, but if I am faithfully sending a payment how can they do that? I am at least making an attempt. Any advice. I am concerned that I will have to go to court, but can't afford anything else.

I would assume that a judge would see that I am making an effort and be a little more sensative, but who knows.

What state do you live in???

Your right, a judge tends to be more sympathetic when you are trying to do what you can. They will continue to accept your payments because they have to, otherwise they will dishonor the contract and null your debt.

I think they're blowing smoke up your ass. If they try to sue while you're making payments, they're gonna look mighty stupid in court. You have all the cancelled checks and records, right?

I agree too. As long as you are making some sort of payment, a judge will probably look at this in your favor. Keep paying only what you can. You can't get blood from a stone.

I live in PA, so I know they can't garnish my wages. I guess they could freeze my bank accounts (not much in there anyway). My parents names are on my checking account and mine on theirs. Would they be able to touch my parents accounts? I thought I read somewhere that if there are mulitple names on a bank account, car title, etc. that they can't take it from you unless you both owe the debt. Is that true?

I do keep all my canceled checks from them, so I do have proof that I pay every month and every month my checks are being cashed by them.

Sorry! Another question: they are still charging interest on this account. Is there anything I can do about this? I have some other accounts in the same situation and they don't charge me any interest.

Absent an agreement, a creditor does not have to accept payments. Your making payments will not affect the case against you in court. You either owe the money or not. Making payments only has to do with how much.

That is technically true, however the judge will look at the fact the debtor is making good faith payments and if that is all they can afford a judge will take that into account.

Workin' overtime, huh Socks?...

First, I have been in the collection industry for over 10 years. I was a nice person on the phone. I was not rude mean or intollerable. A lot of people think that when they make payments, it is ok and nothing will happen. The problem is, once it is outsourced, or goes to a collection agency, the amount is due in full. Most businesses give you about 6 months to a year. That is the time to make the payments. If you pay regularly, and on time to the original creditor, chances are you will be ok...just try to pay it over a 6 month time frame. Once in collections, you have to be on an acceptable guaranteed payment plan. That means that you pay it over a time frame, if not in full or settled for a lesser amount. the 50.00 a month thing is usually NOT acceptable at this point and time. And, if you miss a payment, then you have broken your agreement and the original creditor can, if they choose, take further action, depending upon your state laws. Also, there are several types of collections: first party, third party and commercial. The first party and commercial DO NOT follow fdcpa. First party is usually the company that owns the debt. Commercial is usually a business to business contract. Third party has to follow the FDCAP because it is contracted out by the original creditor. No matter what you do, the debt will NOT go away. The calls can stop and the letters, but the debt is still there. And just because people think "oh it will be off my credit in 7 years" that does not work either. Honestly, the best thing to do is be nice and try to work something out with the debt collection service. Hope this helps.

Bull. Let me 'splain it, simple-like. There are three parties that come into play on consumer debt issues. That's why they're referred to as first, third, etc. Those parties are:

First party: The original creditor. The person or company that lends the money.

Second party: The consumer. The person who borrows the money.

Third party: Anyone else. The original contract is between the original creditor and the consumer. Anybody else, be it a collection agency, junk debt buyer, or the kid down the street is third party. As such, they are all bound by FDCPA. A junk debt buyer cannot ever be first party, unless the consumer has a contract with them. They didn't come into the picture until long after the original contract was signed. Thus, they cannot be a party to it.

You explained that well, WULF!! NOW.........if u DID make payment arrangements with the Creditor and something happened where u JUST couldn't keep that arrangement. And the Creditor turned it over to a CA. You KNOW, at this point in time, you JUST can't make arrangements and u try to explain this over the phone. I know CA's don't have to 'work with you', but..what do u do in a situation like THIS??

Got validation?

I KNOW I owe this debt. I just want to take care of it. I've been trying to find out who 'owns' this debt NOW. God...what a pain in the ____!!!!