Legal Question in Credit and Debt Law in Michigan
Creditors collecting a debt
I owe approximately 6,000 to a school for tuition. I was turned over to a collection agency who is requiring me to put a substantial amout of money down on the debt (at least half). I offered to pay 100.00 a month as a good faith effort but they declined to accept the money stating that they needed more.I contacted the school and they told me I could make payments to them. Later the collection agency called and said the school entered into a contract with them and that legally I can't make payments to the school. I have been paying religiously for the past 4 months to the school but the agency has told me to get a ''good attorney'' and have hinted around to garnishing my wages. Can they do this?
1 Answer from Attorneys
Re: Creditors collecting a debt
This is a very good question. You are only obligated to pay the party with whom you have the contract: the school.
Even if the school and the collection agency have a "deal," you have absolutely NO obligation to pay the collection agency, unless and until the SCHOOL tells you in writing to pay the agency instead.
The next time they call, get a manager's name and a mailing address. Send them a certified letter telling them NOT to contact you any more by telephone, that you are and have been paying your debt as required by contract to the school. Tell them that you will not be threatened or bullied by them any longer [document, if you can the harssing calls and with whom you spoke].
Then, make sure you keep good records of payments to the school (always pay by check). That way, if the agency is stupid enough to sue you, not only will you have proof that you are paying the debt to the proper person (the school), but you will have a certified letter telling them not to contact you as of a certain date. You are not obligated by law to pay the agency, so if they sue you, make sure to counterclaim against them for sanctions.
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