Legal Question in Credit and Debt Law in Indiana

Re: Once your account is in collection can you force it back to the original cre

If you have something in writing from the original person you worked with at the collection company that accepted your monthly payment plan of $20, then the collection comapny is probably locked in with your $20 payment. However, if it was only verbal then things get a little murkier. There is a legal theory called estoppel that basically says, if you allowed a certain thing to go on for a long time, then you are estopped from coming back and changing things. This theory does not work in all fact patterns, but I think it would in yours. The only problem is trying to convince a collection employee that he or she are estopped from pursuing their activity. They could probably care less and it would cost you money to try and impress upon him that he is in the wrong.

My advice is that if you do not have something in writing as regards your $20 payment plan, I would write a letter to the original creditor with a copy to the collection agency, in which you outline the agreement and supply information that shows you have been making payments for 24 months straight without a hitch, and it is patently unfair to disregard the original agreeement.