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 Posted: Mon May 12, 2008 2:09 pm Subject: Totally Confused |
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I am needing something cleared up once for all. If the creditor is willing to accept payments from you, but the Collection Agency does not want to work with you due to consolidating your debt and not recieving the amts they want, why would they (Collection Agency) have the right to sue for a debt that you are already paying to Original creditor? That doesn't make sense? 
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meircats
Joined: 07 Apr 2008
Posts: 53
Debtcc Points: 963
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| Posted: Mon May 12, 2008 6:06 pm Subject: |
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The key is that the creditor still owns the debt, and they have retained the CA to collect. In a case like this, the creditor can accept payments directly and apply it to the account -- albeit the creditor should report the payment to the CA. But any remaining balance can still be "in collections".
In taking payment, did the creditor agree to stop collection? Even though they are accepting payments, it is possible they don't consider the amount paid sufficient to satisfy the account. If the creditor allows or directs the CA to file suit, then it can proceed for any remaining balance.
But if the creditor agreed to accept your payments in lieu of suit, then the CA should not be filing a suit.
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DebtCruncher
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Joined: 07 Nov 2006
Posts: 1541
Debtcc Points: 17421
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| Posted: Tue May 13, 2008 8:44 am Subject: |
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If I were you, I would speak directly with the creditor, and tell them what is going on with the CA. Flat out ask them if they will consider revoking the debt from the CA and deal with you directly. That would solve it for you.
If they are at least reporting those payments to the CA though, the CA shouldn't be able to sue you.
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Seeing_the_Light
Joined: 28 Mar 2006
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