Terrified and don't know what to do - please help!
Date: Wed, 01/06/2010 - 11:35
This Scott Lowery person called my mother-in-law again today, saying that some "big decision" was going to be made TODAY and it would be not in my best interests and could hurt my husband, etc. and that I had to call them right away. They've also called my number three times this morning, although I haven't picked up.
I don't want to answer, because I don't know what to expect or how to handle them. But I do NOT want them continuing to call my husband! I owe the money and want to pay it off, but even if I sell of all of my business equipment/assets, I can probably only raise around $3 total, and that's assuming I can actually find buyers. My business is completely dead and at this point, I have no other job prospects. I just don't know what to do.
Any advice? If nothing else, what is this "big decision" they are talking about - and if I call, am I going to get yelled at/manipulated/abused/lied to/etc.? What should I expect from these people?
first of all if your name only is on all these cards they are no
first of all if your name only is on all these cards they are not allowed to speak to anyone about your accounts, NO ONE that includes your husband. i would speak to them and make it clear you know the laws (after you read up on collections here on the forum) and that they are not allowed to speak to your mother n law and husband or you will sue them and report them for the abuse because that is what it is. they are not allowed to threaten you with anything.
Now second i would recommend on finding out what your own state laws are on collections. i live in a debtor friendly state were they can take you to court, but cannot attach wages and such. they can however attach a lein to my home till the debt is paid.
the "big decision" is if they are going to take legal action. which is a way of threatning you to pay. before calling though i would read up on what they are allowed to say and do so you are prepared and can call them out if they pull something.
You can call them and ask for a mailing address and fax number a
You can call them and ask for a mailing address and fax number and send a cease and desist letter such as.
Your Name
Your Address
City, State, Zip
(Sent via CERTIFIED RETURN MAIL with RETURN RECEIPT)
Date:
XYZ Collection Agency/Law Firm
1234 Main Street, #100
Any town, USA 10021
Re: File #0000000 - ABC Bank - #4445566778899000 -For: $5555.55
Dear Debt Collector /Debt Collector Attorney:
This will serve as your legal notice under provisions of federal law, the Fair Debt Collection Practices Act (FDCPA), to cease all communication with me in regard to the debt referenced above. If you fail to heed this notice, I will file a formal complaint against you with the Federal Trade Commission who is responsible for enforcement, the States Attorney General office and/or the American Collectors Association or local State Bar Association.
I/We have decided that we do not desire to work with a collection agency under any circumstances. I/We will contact the original creditor to resolve this matter directly, as circumstances warrant.
You are also notified that should any adverse information be placed against my/our credit reports as a result of this notice that appropriate actions will be taken. Give this very important matter the attention it deserves.
Sincerely, Your Name
However, keep in mind that the creditor may immediately move to take legal action against you if they feel like they can not collect through harrassment. If you are going to send them a letter asking them to cease and desist than make sure you send it via certified mail, return receipt requested.
It is a bullet that you can not dodge forever. If you put forth the effort to speak with the creditor they are less likely to feel the need to call you and your family members as much as they may perceive that the lines of communication are at least "somewhat" open. However you proceed, you should not expect that the debt will go away on its own or that they wont continue to pursue you for the collection of the debt. Their tactics are likely to get worse before they get better. You may be better off worrying about how to let your husband know about this than worrying about avoiding the debt collector. Better to focus on something you can potentially fix than a debt you cant do anything about at this point.
Hope this helps.
Thank you both for your replies! love_my_things, I just read t
Thank you both for your replies!
love_my_things, I just read the FDCPA and it does say they can't talk to my MIL, which is good news. I will bring that up when I call them. Where else can I find out what they are allowed to do or say? Is there a summary somewhere that I could refer back to if necessary?
James, thank you! I don't want to avoid the debt forever - I want to pay it. If I could sell enough to pay the debt off immediately, I'd do it in a heartbeat. I am afraid, though, that if I call them, they're going to want something I can't give them right now - a lump sum payment in full, or a large payment amount each month. I don't want to get on the phone and have them threatening me unless I give something that I don't have to give. :( What do you think the odds are that I could get them to settle for something like 25% of the total debt? Is that just dreaming?
a 25% settlement certainly isnt unheard of but they will general
a 25% settlement certainly isnt unheard of but they will generally lean towards harrassing you for quite some time before they give up and settle for a low percentage. If it comes down to whether they can settle for 25% with you or sell to an outside collection agency for 10% they will most certainly settle with you. You can threaten them right back, even if you dont intend to go through with the threats by the way. Feel free to threaten them with a cease and desist letter and or a debt verification letter. These are hassles they dont want to have to deal with. Certainly showing the creditor that you are at least somewhat educated about your rights and options gives you some leverage and puts them on their guard in terms of how quickly they will resort to threats. Knowledge is power, study up on their violations and threaten them with the FDCPA. If they have indeed violated it, and you notify them of their violation you may be able to negotiate things more quickly or try to do a "pay for removal". Do some more research and take a stab at them.
25% settlement is not unheard of at all. It does however depend
25% settlement is not unheard of at all. It does however depend on who your creditors are with; hence who they sold it off too. Who were the original creditors? As far as a summary version of the FDCPA, if you go to FTC.gov it will have Consumer Handouts with summarized bullet points of common complaints.