What is the difference betweeen

Date: Tue, 11/21/2006 - 07:28

Submitted by Mamasita21
on Tue, 11/21/2006 - 07:28

Posts: 99 Credits: [Donate]

Total Replies: 1

a third party collector and first party collector? Reason I asked Bank Of America sent my account to collections which I was aware they would. BOA and I were trying to work out payment arrangements on a $7500 debt but their internal hardship program I couldn not afford the payments so I sent what I could til they sent it to collections. I was told that if they send to collections it would be for the balance owed now I am being told differently. I was contacted the other day by Affiliated One (not sure of exact name left paper at home) and I called them back. and spoke with Lance. He explained how they are attempting to collect a debt and asked what were my intentions I explained my situation and what I could afford but of course no can do. The CA wanted the same payment arrangements as BOA so it got me thinking. I asked was this account sold to them they said no that they collect for BOA and if I do not make some kind of payments my balance would keep going up cause of the interest charge but that is not BOA told me. How can my balance go up based on the interest charge BOA was charging me fi they are a 3rd party collections. I told them what BOA told me and they said they are not 1st party collection therefore my balance will keep going up. I don't understand that at all. I asked Lance if that is the case they I should send my money directly to BOA if they are working for BOA. He did not say anything so I am confused if this is in collections wasn't my account sold to them? Can they charge you your credit card interest rate on a card that is closed and was sent to collections?

I don't have the money to send what they want. Prior to BOA sending off to collections they offered me a settlement of $1500 and some change but again I did not have that type of money to send let alone get. Now this company is saying the same payments/settlement as BOA. What do I do?

Bankruptcy is looking more and more like the only option I have due to the overwhelming debt and existing pdl that are in default. I do not qualify for a dmp and with a debt settlement its the same thing since I do not have enough positive income at the end of the month to pay my car, insurance, rent, living expenses etc. Therefore, my alternatives are becomming more bleak and its frustrating me. I have looked for additional work to do after my full time job but no one is calling back. I am at my wits end and I do not know what else to do. I do not want to be sued or have the cc's garnish my wages I barely am surviving now.

Any help/advice would be appreciated it.

thanks.

I think the first party collector is the internal collections de

I think the first party collector is the internal collections dept of the original creditor. When the debt is sold to outside collection agency or even if they are hired, they become the third party collectors.

There will be additional charges on the debt if the contract says so. If the debt is with the internal collection agency, you may not have those additional charges but if it goes to outside hand, the charges will be added on your account if the contract specifies it.

You will have to make some payments and keep the account current otherwise there is every possibility of a summon issued in your name unless the SOL expires in your state.

Look for few more debt management companies around. You can talk to a consultant through this website. A different approach may be figured if you get the right company.

If you are finally thinking about bankruptcy, talk to a lawyer because the debt collector can take all legal actions before the SOL expires.

We have few attorneys and good debt collectors in this forum. They will give you a better insight.

lrhall41

Submitted by BuildingWealth on Tue, 11/21/2006 - 11:06

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