Legal Question in Credit and Debt Law in Virginia
Collections-will pay but want this to end.
I have a credit card that I've had since college(10 years) that has gone into collections. The initial limit was $500 dollars but over the limit fees and interest pushed it to close to $5000. The collection company threatened to file a judgement so I paid(two paychecks which put me behind in my other bills). I have the copies of the cancelled checks--is this proof enough to make them apply it to my payments? I want to pay this bill down to a point where it can be settled or paid off, but I don't want my money to be paid on an endless bill.
Is there anything--a document I can send them that will show that my payments are being applied, as well as a final payment letter when it is paid off? Or do I need a lawyer to draw up these documents to make them stick?
2 Answers from Attorneys
Re: Collections-will pay but want this to end.
Send the collection company copies of your cancelled checks and a letter offering to negotiate a regular payment scheule to pay off the balance.(You may need to follow up with one or more phone calls.)
You should be able to arrange a satisfactory settlement of this matter without involving the services of an attorney.
Re: Collections-will pay but want this to end.
I don't really understand your question. I think you are asking whether payments to the collection agency are being counted by the credit card company? Presumably, the credit card agency has handed the entire account over to the collection agency. You can call the credit card company to confirm that this collection agency is authorized to handle the account for them. However, if the collection agency "has" the account, it should mean that they have 100% responsibility for it, including applying all payments. I don't understand your question about when will it end. You should be able to demand an exact accounting from them as to how they calculated the balance due and how they are applying your payments.
Send a letter IN WRITING to the collection agency demanding verification of the debt, including how they calculated the balance due, and how they have applied your payments.
In a situation like this, you may actually be better off letting them take you to court. Outside of court, you can only ask them to send you information. In court, they have to prove it. However, if you know that you owe money, then the court option would be worse if they ask for attorney's fees. So it depends on whether you believe you owe the money or not. If you know you owe most of the money, then you don't want to be hit with attorney's fees on top of it, so you want to stay out of court. If you believe they are wrong in their demand, then if you go to court, they will have the burden of proving it.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
