Legal Question in Credit and Debt Law in New York

Re: Offering to Establish a Payment Plan With Collections Agency

This is a difficult situation.

1) First, they do accept payment schedules. Your offer, however, is not to their liking. They want a plan that will pay them in less than 6 months.

Point out they will get LESS on a garnishing plan and that, because you have made a reasonable offer, they will not get attorney fees. (You must document your offer - send it by certified mail in a letter form with a check for $100.00. Cashing the check will not be an acceptance of the plan, but it will prove you made the offer.

Make sure your offer includes ending the interest immediately.

2) Point out by calling your neighbor they have made themselves liable under the Fair Debt Collections Act and that you will get a lawyer. They will pay more if you win than they will collect on the debt!

3) It may be helpful to have this offer from an attorney's stationary. If you send me the check (make it out to the creditor, not to me) and give me the neighbor's name, I will write the letter for you. They may listen more closely.

(I could also write the letter and email it to you. That way no money crosses.)

Its tough to owe money you do not have. I would be happy to help. No fee will be asked for the letter.

Re: Offering to Establish a Payment Plan With Collections Agency

You have certain rights under the Fair Debt Collections Practices Act that permit you to order the creditor not to contact you at home or work. You also have rights concerning their calling neighbors and employers and giving out sensitive personal information.

You may wish to speak with someone from legal aid, or from a law school Clinical Program that assists people in your situation. (The Brooklyn Law School offers such a program for Consumer Advocacy).

Best of luck