Legal Question in Credit and Debt Law in New Jersey

Credit Card Debt

If a credit card company (like Chase) claims it has ''written off'' a debt and put it with a collection agency, is it true that, under the law, the collection agency can refuse to accept a monthly pay-down settlement, and can insist that the debtor pay a lump sum? My wife has two delinquent accounts and she has negotiated a monthly pay-down settlement with the card company on one, but the same card company claims to have placed the other account with a collection agency and therefore claims the matter is out of their hands. The collection agency rep was insisting to my wife the other day that she has no option but to pay a $5,000 lump sum payment -- that she will not be permitted to structure a monthly pay-down as she did with the card company. This seems bizarre. Here's a consumer offering to meet her obligation and saying she will commit to a downpayment followed by monthly-installments, and they are rejecting her. and claiming it's lawful She is saying she does not have the resources right now to pay this off in a lump sum.


Asked on 6/13/07, 12:13 pm

2 Answers from Attorneys

John Corbett Corbett Law Firm LLC

Re: Credit Card Debt

I suspect that a review of the credit contract would show that, if the account is in default, the creditor can declare the entire amount due. The reason why creditors include those terms is that, having encountered a debtor who is not paying on the arranged time plan, they do not want to have to file a suit each month that the payment is again late. If the agreement contains that standard term, the creditor does not have to offer payment over time but can declare the entire amount due.

See also: http://info.corbettlaw.net/lawguru.htm

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Answered on 6/13/07, 12:56 pm
Jef Henninger, Esq Law Offices of Jef Henninger, Esq.

Re: Credit Card Debt

Yes they can, may be time to get an attorney to help you out here. For an attorney to just talk with the CA and work something out should not be too expensive. I suggest you look into it.

My initial consultations are always free, so call me at 732/247/3340 to discuss your case.

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Answered on 6/13/07, 5:25 pm


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