Legal Question in Credit and Debt Law in New Jersey

My credit card co. broke a contract with my financial management co.

I go through a financial management co. to lower interest,they pay my credit bills. To do this they submit proposals to all creditors for the amount. One of my creditor accepted the proposal received two payment from my financail co. and then sold the debit to a collection agency,who contacted me and told me I have to pay the entire debit now or lawsuit will be filed upon me. The debit was in arrears, but when the proposal was accepted, the creditor was supposed to re-age the acct. They didn't and sold it. My question is do I have grounds to sue,or fight this being they accepted the payments,then sold the debit,that was a breach of contract,if not fraud,what can I do to stop this lawsuit?


Asked on 6/11/00, 5:54 pm

1 Answer from Attorneys
Robert Gleaner Robert A. Gleaner, P.C.

Re: My credit card co. broke a contract with my financial management co.

It appears to me, based on the information that you have provided, that the second company is bound by the deal that you reached with the first company. Convincing them to back off on their position, however, may be the problem. If they file suit against you on the debt, you would argue, as a defense, that you've already made a deal with the first company and they are required to accept that deal. Keep in mind that this advice is based purely on the little bit of information that you have given to me. There may be other factors that would change my opinion. Thus, before you take any action, you should contact an attorney (either me or someone else) to be sure that this answer can be relied on. If you want me to assist you, feel free to call me at 856-546-8010. Mention LawGuru and your first consultation will be free. Good luck! Rob Gleaner

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Answered on 7/31/00, 12:02 pm


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