Need help with collection agencies
Date: Tue, 04/27/2010 - 09:03
Last year, I got into a big ol' mess with 10 different payday loans... I was spending so much money on the high fees that I couldn't afford my bills. Well, with the help of an attorney (who was free) and this website, I got out the payday loan trap because they were actually 'illegal'. I pay about 700 a month in student loans which I was so behind and now I am caught up, but everything else went down hill and now are at collection agencies. Here is what I have going on:
Credit Card 1 - balance 500??? (less than 500)
Credit Card 2 - balance 500??? (less than 500)
Credit Card 3 - balance 700??? (less than 700)
Credit Card 4 - balance 2000
Medical Bill 1 - balance 600
Medical Bill 2 - balance 80
Total amount at collection agencies: $4,380
I guess what I want to do is have the calls stop and work directly with the original creditors... can I even do that?
Also, I don't want to enroll in a program cause I think that looks worse on a credit report AND I am not throwing away money in those program fees.
You need to send debt validation request and cease communication
You need to send debt validation request and cease communication letters by certified return receipt mail to all the collection agencies! That will stop the phone calls! How many of them have bought the debts? Those are out of the hands of the original creditors! For the ones that are still owned by the OCs, include a line in your letter that you will only deal directly with them! That may or may not work!
Unfortuantely you may not have the option anymore to work the wi
Unfortuantely you may not have the option anymore to work the with original credit...in a lot a cases, collection agencies are hired under contract and they get paid for whatever period of time including random payments sent into the OC...those payments are forwarded. Thus the OC usually stays out of the loop because they are paying someone else to collect from you...and recalling it without cause it not an option.
If you are already in collections, you credit can't get much worse so using an program is not going to make any difference. You can cease all your creditors/collection agencies so they cannot call you or anyone else but then you risk being sued.
Have you looked into using a nonprofit consumer credit councelling program? The fees are much lower going thru them.
Quote:Originally Posted by frogpatchYou need to send debt valida
Quote:
Originally Posted by frogpatch You need to send debt validation request and cease communication letters by certified return receipt mail to all the collection agencies! That will stop the phone calls! How many of them have bought the debts? Those are out of the hands of the original creditors! For the ones that are still owned by the OCs, include a line in your letter that you will only deal directly with them! That may or may not work! |
Credit Card #3 I know hasn't bought the debt because they still send me bills;
I am not sure about the rest. Credit Card #4 was just turned over because I got a the letter on Friday.
Credit Card #1 and Credit Card #2 I haven't heard from in a while - Medical Bill #1 and Credit Card #3 call my family when I don't pick up their calls.
Quote:Originally Posted by SOAPLADY Have you looked into using
Quote:
Originally Posted by SOAPLADY Have you looked into using a nonprofit consumer credit councelling program? The fees are much lower going thru them. |
I haven't heard of any of those--- I get the $200 joiners fees and then the 40% of your debt is in fees... I feel like I am throwing away money