Legal Question in Credit and Debt Law in New York

Re: Collections

Kevin's answer is very complete...though probably a little difficult to understand. In easy language, Kevin is telling you that there are laws out there that forbid a collection firm from harassing you and if you tell them to stop (in a written letter sent certified mail) they have to listen to you. If they don't you can sue them! I've done that successfully...But you have to understand that Citibank (or any creditor) has a legal right to get paid in full..if they can. They'd have to sue you and get a judgment then garnish your wages...under NY state law they can get 20% of your GROSS wages per pay period. You should consider how much they could get from you if you don't settle and figure out how much you can afford. Suggest you do without some luxury for a while and get rid of the debt.

Re: Collections

First of all, the creditor has an absolute right to reject anything less than 100% payment in full right now. You have no right to demand the creditor accept less. Your offer is one that, at 4% interest, would take almost nine years to repay the debt. At the legal rate of interest, it will take almost 12 years. So the offer is not one that most creditors would take seriously.

More significantly, however, the threats to garnish your wages (they have to sue you and win before they can garnish anything) and yelling could serve as the predicate for claiming a violation of the Fair Debt Collection Practices Act. That might serve as a gambit to negotiate paying less than 100% of the debt. You'll need to read up on the statute; here's a link http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm. That statute also details what you can do to make them stop calling you. Popularly known as a "Drop Dead" letter, and more familiarly by nomenclature that is not used in polite company, it will limit the attorney to doing what she probably wants to do, which is to file a lawsuit and execute against your assets.

Good luck. In the commercial world, you have what is regarded as the best defense there is: no money. In the consumer credit world, it's not much help, since creditors these days reduce the claims to judgment, bundle them up as a derivative, and sell the bundle as a marketable security.

I would tell you to settle for what you can after reading the statute and doing the acts that the statute requires before you can sue for violations.

Re: Collections

Citibank generally takes 80% lump sum or 100% over time at prob 100-150 /month. Try those numbers if they work for you,

Good Luck

RRG