Legal Question in Credit and Debt Law in New York
Stipulation Agreement
I am trying to settle an old debt with a collection agency/attorney. On the phone, the amount owed was quoted as $2071. We agreed upon, $500 upfront and make monthly payments of $200. I received the stipulation of payment agreement in triplicate, one for my records, 2 to return to the agency. Upon reading the agreement, I noticed several things. The amount owed is listed as 1682.55, plus disbursements (?) of 68 and 100 for attorney fees. Total 1850.55. Then it says what we had agreed to on the phone. Then it says that I agree to pay interest at the rate of 9% which will accrue on the decling balance. It has a few othe stipulations but none of which concerne me. My question is, can they charge me interest and what about these other fees? What is a disbursement fee? Is it a one time thing? I have no problem paying, but also don't want to be scammed, the collector was very rude, abrasive and not willing to bend at all. He was very intimidating and probably figured he could take advantage of me....I just don't want to be bullied but this law firm anymore. I know I screwed up. The credit card originally had a $300 balance and now it is $2000...insane! Please help me understand. I don't want to sign this if it isn't fair. Thank you.
3 Answers from Attorneys
Re: Stipulation Agreement
Whatever you sign is what you agree to. It is as simple as that. If you do not owe it, don;t pay it and let them sue you. Then they may agree to the original balance. It becomes a game of chicken.
Good Luck
RRG
Re: Stipulation Agreement
Before you sign or do anything, you should figure out if, and what you owe. It would take a pretty long time for the interest on a $300 debt to become $2,000, and yes they can charge interest.
If the law firm or collection agencys is trying to collect an amount that is out of line with what you owe, you may have a claim under the Fair Debt Collection Pratices Act. I would need to know more facts in order to ascertain this. Please feel free to call me at
800-392-9698,if you wish to review.
Re: Stipulation Agreement
Please remember: they are not in 100% control. You have the money and they waty money. They have assets that you want as well. This is how deals are made.
If you don't like the deal offered, make a counter-offer. I recommend you offer them 1,000 cash for the entire debt. See what they say.
I strongly recommend that you do not sign something that you feel is userious. This is a situation wherein negotiation is appropriate and often very effective.
I am available to coach you through emails at no fee.
Keep you spirits up! They will likely accept the 1,000 final payment. If not today, then within 30 days. Be firm, be confidant and, most of all, be flexible.
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