Legal Question in Credit and Debt Law in California

can a creditor refuse my partial payment? I am trying to pay off my student loan with sallie mae and i have told the collection agent several times that I can make monthly payments of $50.00 but they refuse and demand that i pay $80.00/mo. Ive been told that its the only amount that will accept and if i don't pay that amount monthly, they threaten legal action. is this legal?


Asked on 6/27/10, 1:29 pm

1 Answer from Attorneys

If you send them the money they must accept the money and credit it to your account, but they do not have to stop legal action unless you pay according to the terms of your loan, or a modified payment that the creditor agrees to. The only payments you can force them to accept and stop legal proceedings is if you are current under the original loan terms and continue to make those payments, or they agree to a lesser amount and you pay that amount. Without their agreement, they are under no obligation to do anything but collect the full amount and go to court to do it if they choose.

Read more
Answered on 6/28/10, 10:03 am


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in California