Legal Question in Credit and Debt Law in Michigan

Fair Collection Practices

I have a credit card (approx $5,000 after all legal fees etc.) that was put in collection. I was notified by an attorney that they were going to sue. I wrote, asking them to accept $10.00 per week, which after 6 months I started paying $15.00 per week. This was set up through the bank as an autopay and I have not missed a payment in a year. They did file and receive a consent judgement (I signed a form) last March (5 months after I started making payments). The attorney's office calls my home about once a week - I have indicated to them by letter I prefer written correspondence as I am very hard of hearing and the phone is a chore. I have received nothing written other than a receipt every week. Today they took $491.00 directly out of my bank account. I have received no notification or anything that would indicate that this was coming. This $491 is more than half of my monthly income. In addition it caused $150 in bounced check charges and a $35.00 fee by the bank for taking out the money, as well as bouncing my car insurance payment. Do I have any recourse, how do I stop them from doing this again, short of shutting down my bank account.


Asked on 11/09/04, 3:55 pm

1 Answer from Attorneys
Jesse Sweeney Sweeney Law Offices, P.L.L.C.

Re: Fair Collection Practices

At this point I would suggest filing for Chapter 7 bankruptcy to get them off your back, especially if that amount if half of your income. That said, maybe you can call and ask what happened, and if they violated the Court order, you can do a Show Cause motion in Court - better contact a lawyer.

Read more
Answered on 11/09/04, 10:32 pm


Related Questions & Answers

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