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what should/can I do?

Date: Sun, 06/05/2005 - 09:49

Submitted by imkimssister
on Sun, 06/05/2005 - 09:49

Posts: 1301 Credits: [Donate]

Total Replies: 17


Hi, I'm back! I have an account (actually two accounts) with MBNA that went into 'charge off'. I wrote MBNA over and over again explaining my situation and trying to get something worked out with them on these accounts. Nothing/Nada. They even sent me a letter telling me if they didn't hear from me by a certain time, they were going to do a charge off. HUH? I had been writing...and even wrote them back after receiving that letter. They say they'll help you, all you have to do is let them know. whatevers!! thats BS cause I tried to get them to work with me. anyways, A collection agency got the accounts, I don't know if MBNA sold them or just sent them off to be collected. (is there a way to tell? besides writing and asking and then they don't answer--so you still don't know). One account has been through several CAs. When I write them and tell them how hard I tried getting MBNA to work with me, they no longer want the account and send it off to someone else. (wonder why that is?). So they finally sent it to a CA that is willing to work with me. They want $100 a month on the account, but for now, I am sending them $50 a month, (until things improve financially for me). They seem fine with that. BUT the 'other' account, also has been through a couple of different CAs. The last one, would not answer any of my letters...and believe me, I have wrote some letters, sometimes twice a week. nada from them. until last month, I decided to mail them a $50 money order. They cashed it, put it towards my balance and then sent it off to 'yet another collection agency'. So I have to start all over with this CA. (this account is higher than the other account was). So I write and try to get something worked out with them. They write me back last week and say that they're willing to work with me, for $500 a month! They even pulled my CR because I checked my credit report a couple of days ago. Theres no way I can afford to send them $500 a month. Even when the account was with MBNA, the payment was only like around $150.00 a month and I couldn't even manage that at the time, what makes them think I can manage this? If I could afford these payments, I could have afforded the original and never got behind in the first place. since they looked at my credit report, they should see 'a not so great credit report' with several charge offs, not just theirs, several others, that I am also trying to work out. I know they don't care about that, only theirs. but dang, what if every charge off I have, wanted $500 a month!!! I am going to start sending them some money, just as I do everyone else. this friday I will go to the post office and get all the money orders I need, including something for them. what should I do??? should I keep negotiating with them first before sending money, or just send them something I can send and see what happens from there. They want $500, what would be fair? I know, its what I can afford...$50 or $100? with a letter telling them that if they cash it, they are accepting this arrangement?
They said and I quote' the above payment plan is the min we can accept for this not to proceed. referring to the $500.00 a month. can someone help me that has maybe dealt with this before. I can not afford $500 a month--it would be a much hardship for me and my family. but there is a 'threat' to proceed if I don't do it. oh BTW, the amount is $2926.59 and its with ACB American, Inc. thanks, shirley


Hi Shirley,
Welcome back to the debt consolidation care forums.

Shirley, please do not panic. Many a time, collection agencies change hands. This happens when they realize they are unable to retrieve the debts. However, it is always wise to keep good terms with them.

At the present, you need to negotiate your debts with your creditor or the collection agency very tactfully.

Please keep a well-documented evidence of your dealings with each and every creditor and collection agency. This is essential in order to keep oneself in a safe position.

Quote:

collection agency got the accounts, I don't know if MBNA sold them or just sent them off to be collected. Is there a way to tell?


If your creditor or the collection agency contacted you over the phone, then you may inquire about the account status. Otherwise, you may do so at the time of your payment.

In case, you want to pay the dues to the creditor, and the account is no longer with the creditor, then the creditor will particularly tell you whether the account has been sold off or not.

If on repeated enquiry, the collection agency does not give you the information about the actual status of your account, you may insist on making the payment to the original creditor.

Quote:
Theres no way I can afford to send them $500 a month. Even when the account was with MBNA, the payment was only like around $150.00 a month and I couldn't even manage that at the time, what makes them think I can manage this? If I could afford these payments, I could have afforded the original and never got behind in the first place. since they looked at my credit report, they should see 'a not so great credit report' with several charge offs, not just theirs, several others, that I am also trying to work out


If you decide to deal with the collection agency then, make sure that you negotiate tactfully with them. They must realize that there is no way you can afford to pay the demanded amount. To gain get a more detailed idea about debt settlement you can read the article provided by this site.

http://www.debtconsolidationcare.com/settlement-ways.html

Quote:
what should I do??? should I keep negotiating with them first before sending money, or just send them something I can send and see what happens from there.


In this case, you can try to negotiate further with the collection agency, until they bring down their monthly installments to an affordable level. After this, you can begin any further payments. This is because, the money that you will be paying now, will still be considered as a lower payment than your monthly dues, and you will be forced to pay an added late fee and an extra interest.

You should also ask for a validation of your debts from the creditor or the collection agency that you are dealing with at the present. You may read the related article provided in this site:

http://www.debtconsolidationcare.com/validation.html

Quote:
They want $500, what would be fair? I know, its what I can afford...$50 or $100? with a letter telling them that if they cash it, they are accepting this arrangement?



If the Collection agency does not agree to budge from their position, then you may, go ahead and send a letter informing them of your situation. If you wish to make an unsolicited offer to the creditor or collection agency, you may do so as well.

Here is an example of such a letter, provided by this site. This may help you format your letter according to your requirements:

http://www.debtconsolidationcare.com/letters/sample17.html

I sincerely hope that this information helps you.
Feel free to return with more queries.

Regards,
Peter


lrhall41

Submitted by peter on Mon, 06/06/2005 - 05:50

( Posts: 285 | Credits: )


Hi Shirley

Welcome back.

Quote:

I don't know if MBNA sold them or just sent them off to be collected. (is there a way to tell? besides writing and asking and then they don't answer--so you still don't know)


It is possible that the creditors sell the accounts to different collection agencies. This is done to recover the debts from the consumer.

Please keep accurate records of all the correspondence made with the collection agency. Please follow some basic rules while dealing with debt collectors who use unfair ways to recover the debt.
[list=1]
  • You have your rights defined as per the fdcpa laws and do not get intimated.

    http://www.debtconsolidationcare.com/fdcpa.html

  • Please get everything in writing before you pay anything and keep a record of it.

  • You should make decisions on your payment amounts and intervals and not on the basis of collectors.

  • The debt collectors are not allowed to use abusive means and harassments for the collection of the debt. If it is done, please report it to the FTC.

  • Never get collection agents bully you into any payment agreements that you just cannot afford.


    Please report it to the FTC or the CCCS if you find anything happening unfair in your way.

    Please do keep posting your comments and suggestions in the forums for the community help.

    Regards
    Roxette


    • lrhall41

    Submitted by roxette on Mon, 06/06/2005 - 14:51

    ( Posts: 4009 | Credits: )


    Please refer to my post that started this threat and get familiar with my situation. I am pretty UPSET right now. I have not dodged these people. Another collection agency had this account and sent it to
    "ACB",upon getting the first letter from them telling me that they had the account, I wrote them right away, trying to work something out. I asked for payment arrangements. something along the lines of maybe $100 or so a month. They wrote back and said '$500 a month', I jumped on the forum here and asked what to do as I CANNOTafford that much a month. So I wrote back and explained my situation again to them and just flat out told them that theres no way I can afford that much a month, can we come up with something better that would make us both happy. At this point, we have no 'arrangement between us. I did not agree to the $500, and they know this because I wrote and said I couldn't do this. I have wrote them two letters. The first letter, they responded to me back in writing, this time when they received my letter, they started calling my house every day!!!! Both letters told them NOT TO CALL MY HOME OR JOB--NO PHONE CALLS ALLOWED--WRITTEN CORRESPONDENCE ONLY. yet now they call me every day! Today, I got the following call on my answering machine.
    (this woman with a really bad attitude sounding like shes scolding me in the principles office saying) We tried this last month. I sent you the letter that you requested (??don't know what shes talking about??), we've bent over backwards to try to help you on this and you STILL won't keep your arrangements (again, huh? no arrangements)therefore we are gonna go ahead and proceed with ledigations. I've verified your property and I'm ready to move forword. And if you still want to resolve this in a voluntary manner, you have until noon tomorrow friday june 24th to call with an arrangement in hand..

    OKAY, now what do I do???? get busy writing another letter? so, she's bent over backwards?? I'm the one begging for them to work with me, and all of this started with an account with MBNA that ignored me when I wrote letter after letter to them asking for their help, then its just been passed around amongst CAs after that. I'm the one that has been trying to work with these people, she tells me $500 a month FLAT and thats bending over backwards to help me?? how so? And what can she do with my property? this debt is 2,900.00. funny, I had two MBNA accounts, the collection agency that has the other account is sooo easy and understanding. They're accepting $50 a month on it. I even have a VISA card that is taking $50 a month and the debt on it is higher than this one is. I'm so mad right now I can't even see straight. thanks for listening and hope someone has some good advise or offers a good letter that I can send them. thanks, shirley


    lrhall41

    Submitted by imkimssister on Thu, 06/23/2005 - 15:39

    ( Posts: 1301 | Credits: )


    Hi Shirley

    I tried to draft one letter for you which you can send to the collection agency. I have made it direct and to the point. Also tried to be sincere so that the collector can offer suggestions. You can consult your counselor also to set a planned budget. Please keep one thing in mind that this letter is made thinking about your future. I have written this letter thinking what they will be reporting to the bureaus.



    Quote:

    Today's Date

    Your Name
    Your Address


    Attention: {name of collector}
    Name of Debt Collection Agency
    Address

    RE: Your {letter dated} or {phone call on date} reference account #: {place account or reference number here}

    Dear Mr. /Ms. {Collector's Name}

    According to my records and your {phone call or letter} the balance of this debt is $_____. I am not disputing this debt however; my current financial situation prohibits me from paying the amount you're demanding. I am able to make payments on this account every {insert date of month} to your company in the amount of $ _________.

    I would appreciate a call from you confirming your acceptance of my payment terms. However, if I do not hear from you, I will consider your cashing or depositing my check as confirmation that you accept my payment terms. If you do not accept my terms then I expect the enclosed payment to be returned to me immediately in the enclosed self-addressed stamped envelop.

    As a show of good faith I've enclosed my first payment in the amount of $________. If my financial situation improves enough for me to increase my payment amount I will contact you immediately. Thank you for understanding.


    Sincerely,


    Signature
    Your Printed Name


    Hope that this letter will be able to solve your problems to a large extent.

    Regards
    Roxette


    lrhall41

    Submitted by roxette on Thu, 06/23/2005 - 16:39

    ( Posts: 4009 | Credits: )


    Hi again Roxette, my biggest fear is to write collection agencies checks, because then they would actually have your bank account number, but was thinking of sending these people a 'good faith' check in the amount of $100 and was thinking that the cashed check would prove as a receipt that they accepted my offer?? I mean, with a money order, couldn't they always say that they didn't get it, and cash it anyways? at least this way I would have proof that they cashed it and therefore accepted my terms? thanks girl!!! shirley


    lrhall41

    Submitted by imkimssister on Fri, 06/24/2005 - 09:42

    ( Posts: 1301 | Credits: )


    Hi Shirley

    You can send your money order with return receipt requested or the acknowledgment slip which will be signed by your collection agency upon receiving your money order and it will be delivered to the post office from where you sent the money order. You can collect the acknowledgment slip for proof.

    In case if you make payment by check, sign your check with "Account Payee" and it will be a proof in your banking transaction that none other than they cashed it.

    I feel both of the methods will gather valid proof and you will not have to worry of being cheated. They can't deny accepting your payment.

    Keep smiling :D and be in touch

    Regards
    Roxette


    lrhall41

    Submitted by roxette on Fri, 06/24/2005 - 11:04

    ( Posts: 4009 | Credits: )


    In case if you make payment by check, sign your check with "Account Payee" and it will be a proof in your banking transaction that none other than they cashed it.

    So "account payee" would go on the top line to who I wrote the check to???
    Thanks for everything Roxette, you're always there when I need you and have been a really BIG help to me!! thanks again!!! shirley


    lrhall41

    Submitted by imkimssister on Fri, 06/24/2005 - 16:40

    ( Posts: 1301 | Credits: )


    oh yeah, and I meant to ask, could it be dangerous writing them a check? would they try to go after my bank account if they had my bank account number? also, what did they mean when they brought up that they knew that I had property??? how does that work? do they put a lein on the house and I can't sell it or get a second mortgage until this debt is paid??? could you clarify that for me? thanks Roxette! hugs, shirley


    lrhall41

    Submitted by imkimssister on Fri, 06/24/2005 - 16:55

    ( Posts: 1301 | Credits: )


    Shirley,

    You need to write "Account Payee" at the right side of details of the bank is printed.

    Or in other words, just below the dotted lines where you write the amount of the check. It is in between the details of the bank and your signature. (In the blank space besides your signature)

    They cannot put liens on your personal property without undergoing the legal process. They need to file a judgment lien with the secretary of the state or by serving a notice of debtor's examination to you. The lien can by put only after your approval.

    When you are willing to pay your debt, most probably, this situation will not come and a judgment cannot be entered.

    So, I hope that as long as you will keep making your regular payments, things will keep improving rather than deteriorating.

    Regards
    Roxette


    lrhall41

    Submitted by roxette on Fri, 06/24/2005 - 17:29

    ( Posts: 4009 | Credits: )


    Hey girl, its me again. Sent these people a letter, the one you drafted up for me. I sent it off last saturday (june 25) along with a $$$good faith check. I got it back today. Heres what was said...

    due to the age of your debt, we are unable to accept your proposal and if you read your original contract, you will see that we are under no obligation after default to offer a payment plan, therefore we did try to work with you by offering to let you pay your obligation in $500 a month for 5 months and final $426.59 in the 6th month.But to finance you for 58.5 months at $50 a month interest free is not possible for repayment of your balance. Therefore this is your final notice and we do intend to recommend that our client exercise their legal rights, this will occur on July 5th.

    -------------------------
    I also wrote her another letter and let her know that she has violated my rights by calling my home every day after I wrote several times and asked her not to. I had the dates and the times listed. she called last thursday giving me until friday. Then she called monday giving me until wednesday and now she writes and gives me until the 4th.
    Funny how I have TWO accounts with MBNA (their client), and another collection agency has the other account and they are accepting $100.00 a month until paid off, and the balance on it is alittle over $2000. this account here is $3000. So I'm thinking that its just this woman trying to put the pressure on me. The check I sent her was $50, maybe I should send out another one with the letter you wrote, for $100. I only sent $50 cause I was hoping they would write back and give me something easier to work with. you know, like, hey we can't accept $50 but we'll take $100 or $150----but no, its all or nothing $500 a month and shes doing me the favor.
    so, what should I do now. This is the first time anyone has sent my check back. This woman seems like a real pain. all other collection agencies are happy to get my money and are working with me, INCLUDING the 'other' account that belongs to her client.
    thanks for listening Roxette, hope you can help. Shirley


    lrhall41

    Submitted by imkimssister on Thu, 06/30/2005 - 15:54

    ( Posts: 1301 | Credits: )


    Shirley

    I also assumed that collection agencies are happy as long as they keep getting money. They should consider the part from the debtor's point of view also. If you think that increasing the amount of money will bring some relief, then you can try for it.

    They are giving the dates just to pressurize you on such circumstances when you are left with no options but to pay. But as long as you are willing to pay, they can't/ shouldn't use legal rights.

    Ultimately, I am thinking of your credit report. This entry (that also in collection) is being reported in your credit report. It needs to be deleted as soon as possible so maybe you can try a bit harder.

    Do let me know after they reply. Keep in touch and stay well.

    Regards
    Roxette


    lrhall41

    Submitted by roxette on Thu, 06/30/2005 - 16:06

    ( Posts: 4009 | Credits: )