Legal Question in Credit and Debt Law in Massachusetts
My boyfriend received a phone call from a company called Nelson Watson and Associates demanding payment for a Capitol One debt of $1200. We advised them that we do want to take care of the debt, but due to financial constraints and the fact that I am pregnant and completely dependent on my boyfriend for financial support, we could only afford to pay $50.00 a month until we got his tax return back, and then we would repay the balance in full. They refused, and countered with three other options - all of which were impossible in our situation, a concern we relayed to the representative. They told us that to avoid "legal action" they needed a payment by that Friday. We were scared and felt cornered, so I gave them my bank account number and routing number so they could take money out that Friday. I then decided to research them and found out they have a shady reputation and a C- rating with the BBB. After finding this out and reading incidents that happened to other people, I closed the account before they could take out the funds - fearing that they would overdraw my account, incurring overdraft fees for me. Is there anything we can do to settle this in a way that won't force us to file for bankruptcy? Is the harassment we received to solicit the post-dated check legal? Am I liable for NSF charges by them?
2 Answers from Attorneys
In the Commonwealth of Massachusetts consumer/debtors enjoy the legal protections of two very powerful "debtor" laws: 1) The federal Fair Debt Collection Protection Act (FDCPA), and Massachusetts General Laws Chapter 93A (Unfair and Deceptive Practices Act or "UDAP").
From the facts you relate, this debt collector/creditor may be in violation of both of these laws. You may wish to seek further counsel from a consumer protection lawyer. Both of these laws provide for money damages to wronged consumers, along with attorney's fees and costs.
This Office specializes in FDCPA and M.G.L. c. 93A matters. Initial consultations are free. Good Luck!
I second everything posted by Attorney Wood, and would like to add that you probably should not consider bankruptcy over such a small credit account.
I think you were smart not to allow the withdrawal of money automatically from your account. My advice would be to speak with a lawyer, who may be able to help you negotiate a settlement of the account for less than the full amount you owe.
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