I need advice on what to do with a collction agency

Welcome to the forum, many will be glad to assit you here.Was this a written or oral agreement by both parties

written agreement for $400 per month. i have two statements, one april 2006 and one from july 2006 showing that an agreed amount of $100 is owed.

Then that is all you need I would think if both parties have a written agreement of $100 then keep sending them $100 a mo and remind them ever so nicely that you have a copy of this agreement

last month i faxed them a letter informing them that the agreed payment is $100 and I attached copies of the statements showing the agreed amount on it. they just sent me a letter saying "your failure to fulfill your payment arrangement leaves no alternative but to recommend legal action". what do you think I should do?

Have you missed a payment or failed to keep your end of the arrangement up?

i've paid them $100 a month on time for the past year

Then I would send them an itemized statement of each monthly payment plus a copy of the agreement again certifed mail with a letter stating that you have followed the agreement that both aprties agreed on and that you will continue to follow the original agreement until the debt is settled. If they take you to court then you have all this evidence to back you up but just keep paying the $100 like the agreement states.. anybody else want to chime in on this one?

the collection agency is out of washington state. i live in new jersey. can they sue me from there?

I agree with Ashley, if you have the paper work to back you up, it seems like you are in the right. Have you tried talking to them over the phone?

there is no talking to them. when i tell them that i have documentation showing that the agreed amount is $100 they tell me i'm wrong and that the total amount is due immediately. I told her i couldn't afford to pay $1400. She transferred me to her "supervisor" who told me they were going to suspend my driver license if i didn't pay right away.

Okay they are so FULL of hot air its not even funny, they CANNOT suspend your DL, they can't send you to jail. OMG that is a new one I never heard b4. My advice is to just keep sending the $100 a month and let them take you to court, evidence is on your side

it's just such a big hassel. i don't answer the phone any more when they call, i'm just going to go through the mail.

That is about all you can do, CA should have the middle name hassle. Just keep up with your payments and you will be fine

thanks

Suspend your DL? What, they have an in with the DMV? I think not! And correct me if I'm wrong, but the only person who can suspend your DL is a judge!! On top of sending them copies of the agreement, I would also do the following: get copies of any checks you used to pay them off and copy them front and back, showing the endorsement where they were cashed. If you did electronic debits, get copies of your statements showing where the money was taken out of your account.
I would also refer you to a prior thread on the boards, talking about how the end of the year is bad for collectors. Sounds like this situation is a prime example of that. Maybe these people see the chance to boost commissions by any means possible?

Take his driver's license? Now that is a new one----they are probably trying to connect with the law that can take away driver's licenses with "dead-beat dads" that don't pay child support. My ex had his license revoked and was kept from getting a business license because of back child support---believe me once he found out, he paid me off VERY quickly.

Or it could be that they are thinking of parking tickets... here in Illinois if you have 10 or more unpaid parking tickets, a city can have the Secretary of State suspend your license.

I think kscornell is right... it's the end of the year, they are hard up for money and they are trying to intimidate you. They cannot do anything to your driver's license.

I have 4 payday loans ans am a single mom trying to make it. I got into the rut and had to get a loan to keep the others afloat. I have paid more in interest to 3 of them that is more then the loan itself. I would like to get a loan to pay them off but my credit is not good. Where and who can I turn to to help me get these off my back?

smlaney1 - welcome to the forums, and Happy Holidays!

Many of us here have been in your situation - single parent with one income, and we fell into the payday loan trap, thinking it would "help" - when all it does is hurt your situation.

If you will register with this site as a member (it's free), a debt counselor from your area will contact you within a couple of days to offer some consolidation or settlement ideas. You may join their program or not, it's your choice.

However, since you mentioned you have payday loans, many of us have already dealt with this issue, and have managed to get our loans paid off or marked paid in full by the issuing company due to our state PDL laws.

If you are comfortable posting who you have loans outstanding with, how much you have paid, how much the loan was for, and what state you reside in, we can offer you some advice.

Check out your state's PDL law on your state government's website, which would be http://www.michigan.gov/ (put your state's name instead of Michigan). In the search box on your state's page, search for payday loans or payday loan law.

Let us know what you come up with, and we'll be glad to help!

You should continue to send what you have. They can not sue you if you are not refusing to pay. You have a payment history with the company. Keep all of your documents pertaining to your payments. The idea is to get you to settle now or even offer one because it is almost tax season and they know people pay bills off during tax season.

I got a call from their collection agency - Paramount Financial Services - can anyone tell me anything about them - she said they were taking me to court - I live in maryland - payday loans are illegal in Maryland - can they still take me to court on this -

dduvall -

If they are attempting to collect on a payday loan, which are illegal in Maryland, they wouldn't be able to take you to court. Are they collecting on a payday loan, or something else?