Hey...

I'm about to be put on collection agency by a bank for about $1,200, and I do not have money to pay - don't ask how I got into it, long story.

Ok, I don't have the money to pay the collection agency - what actions will they take against me?

Law suit? I mean I still won't have money to pay, so that mean's I'll have to do time?

I'm in deep $hit.

:bawling:

It depends. They may just keep trying to collect the debt. They may eventually turn it over to lawyers. It all depends.

Your credit rating's going to take a beating, though. If you want to get any credit cards, or buy a car or house, or get a loan, you may not be able to do so with this on your credit report.

Think of it like sending spam. You may not be put in jail, but things will be arranged so that others know not to accept mail from your servers (or in this case, extend credit to you).

I don't know where you are or what your local lending environment is like, but if you take the matter up with the collection agency and make a regular and reasonable attempt to repay the debt, chances are they will support you. It will cost them less in the long run.

We've just baby-sat some friends through a similar situation. Made a few calls, gave a few assurances, and told these people what they wanted to hear, and our friends are well on the road to recovery.

Collection agencies aren't unfamiliar with people in dire straits. Ignore or try to fight them, and they'll come knocking. Make the effort, however small, and they have no grounds to pursue legal action.

(generally speaking) :)

Gary

Is there a chance that collection agency will allow to pay it off in small installments? I mean if I'll get hit with that one big bill at once, I'm for sure a gonner.

Yeah, my credit history is going to be a mess for sure - but I'm ready to coop with that, I mean I know I did a big mistake messing with the bank. That's what happens when you get your first bank account and take out money thinking you are going to pay back when you just lost your job - I'm a total fruit. :o

My stupid ass always has to learn the hard way.:crazy:

hey this is weird...

around christmas this one started bugging me for an amount i dont believe i was responsible for.

i told them i would need a few weeks.

they called in a few weeks, so i then in a few weeks called and said i would need a few more weeks

and they never asked me again...

i pulled my credit report and it doesnt show on there.

*shrug*

I have a friend named Guido that can solve any collection problems you have...hehehehe..;)

Originally posted by ArtieFishill
I have a friend named Guido that can solve any collection problems you have...hehehehe..;)

ill give him a bat and a c note if he helps meh out :o

I think that, like Gary said, if you make a reasonable attempt to pay then the agency will still want the money, and you may still keep accruing interest on the principle, but they may have a way for you to remove the negative notation from your credit rating.

Give them a call, ask them what your options are. They want the money. If they have to wait a little while to get the full amount, they're sometimes okay with that. They're prepared for people who say "I can't pay the whole thing now."

Originally posted by clever
Law suit? I mean I still won't have money to pay, so that mean's I'll have to do time?


You can't do time for nonpayment of debt unless it involved fraud, bad/bounced checks, lying on a credit application, etc. They will report you to to all the credit agencies ruining your credit rating. They might also file a civil suit. A judgment for the bank allows the bank to take a certain percentage of money directly out of your paycheck(25% maybe). Personel property generally isn't liquidated for payment of a civil suit judgement. Beware, if you lose a civil suit you can be held responsible for court fees, interest, and legal fees for the bank. This can double or triple your debt amount.

Most collection agencies will make deals to take a small amount of money every month until the debt is paid. Just make sure to get the deal in writing and never miss a payment.

I hate to say this but I went through this with a hospital bill a number of years ago. They took it to the local courts in which I did not have to appear. The purpose was to determine if the debt was real....and it was. Things for me were much leaner back then..but I sent then $25 a month to pay it off. At that point, they couldn't do anything legal towards me, such as garnish wages, etc. They did, however, keep calling even though I was paying. I basically told them that there was a choice...I could continue to send $25 a month until it was paid or I could declare bankruptcy and they may never see a dime. After that, I never heard from them again and as things got better financially for me, I was able to increase the amount.

If you honestly make a good faith effort to pay it off, even small monthly (but regular) payments, it will make the situation a whole lot better for both parties.

Not sure where everyone is from. But here in the US, just because they stopped calling you or it's not on your credit report doesn't mean that they've gone away. It usually means they've either sold the account to someone that's guarunteed to get the money, or they are investigating you to see what action they can take against you.

Collection agencies are stupid, they don't buy your accounts to just let them go, they buy them to get the money out of you. Best to do what others have said, work with them, and make arrangements to pay it off. As long as you're making an effort they usually will work with you.

The only time they won't work with you is when you dick them around for years, then when the 7 year date is coming up, then they need to take legal action before the debt expires.

Originally posted by clever
Is there a chance that collection agency will allow to pay it off in small installments? I mean if I'll get hit with that one big bill at once, I'm for sure a gonner.

Yeah, my credit history is going to be a mess for sure - but I'm ready to coop with that, I mean I know I did a big mistake messing with the bank. That's what happens when you get your first bank account and take out money thinking you are going to pay back when you just lost your job - I'm a total fruit. :o

My stupid ass always has to learn the hard way.:crazy:

Call them they may take installments they may also settle for less than the full amount.

You can also call a debt place that will act as an intermediate for you and help you get a way to pay it off in time or with installments

Thanks for the help guys.

At least now I know there is might be a chance that I will be able to pay it off monthly. I was told the bank will close my account on 5.08.03, which is when I'll be placed on collection. For now I gotta run to a different bank to get a bank account before I won't be ever be able to get any other bank account to cash my checks - I can forget about getting credit cards that for sure.

I have a feeling it's going to be a rought ride to hell.

*Lifetime lesson has been learned.*

BTW, sorry for posting in wrong forum.

Plasma donate plasma there is always and extra couple bucks a month there.

Contact a consumer credit counseling agency and ask for their assistance. They exist to help people who are in your situation.

Originally posted by clever
At least now I know there is might be a chance that I will be able to pay it off monthly. I was told the bank will close my account on 5.08.03, which is when I'll be placed on collection.

If it won't be sent for collection till the 8th of May (5th of August?) can't you try and make arrangement to may your payments to the bank?

They will still likely fill an unfavourable credit report, but at least you will avoid having to deal with the credit agency and have ther report on your credit history as well if you end up in difficulty with them.

Look into the Fair Collections act. It basically states that the you're unable to pay your bills but not so far in debt that bankrupcty is an option. This will keep the collectors to calling only once a month.

Or even if you could afford 10 dollars a month, they'll take that. As long as you show willingness to pay, they will work with you.

There is no such thing as "debtors" prison anymore ... In the US ... You cannot go to jail for money owed, they can just completely ruin your credit.

Also, whatever you do, do not ignore them. That will result in you waking up without a car, or coming home with a suit notice in your mail box. More than likely neither will happen though, as your debt is fairly small, but if anything does, it will be the suit notice first.

Also be aware most collection agency's tack on interest each month, and usually a 15-50 dollar collection fee depending on which state you live in.

You can also try to negotiate a lesser amount. Just a few days ago I leant $400 to a friend who is being hounded by a collection agency. The total amount owed was actually $600 (Bank related), but he negotiated a settlement of $400. I'm not worried because I'm sure that I will get my money back. In your case it probably isn’t a good idea to borrow money from a friend, since as you said you have no way of paying it back, but that is an option that you may want to consider.

Originally posted by KIAHost
There is no such thing as "debtors" prison anymore ... In the US ... You cannot go to jail for money owed, they can just completely ruin your credit.

<obliguatory simpsons reference>

"because you sound like a responsible person dr. halper, who wouldn't want a bad credit mark to ruin his dreams of home ownership, boat ownership and event attendance. so when can i tell my supervisor, Mr. Robinson that he can expect payment?!"

</obliguatory simpsons reference>

Worse than getting something negative on your credit report, is getting into ChexSystems - the system that banks use to verify new accounts, etc. If you have just one negative mark in ChexSystems, you will likely find it very difficult to open another bank account anywhere in the US.

https://www.chexhelp.com:447/ChexHelp/chex/english/publik/index.htm

While it's possible you are already in ChexSystems, you may not be. I would call your bank ASAP to find out if they have filed a negative report on you and if they haven't, what you can do to prevent one from being filed.

If you haven't been submitted to ChexSystems yet, I would do everything within your power to come up with the $1200. Try to get a loan from a bank, a friend, family, your credit card. If you absolutely can do nothing to prevent yourself from ending up in ChexSystems, but have not already been reported, RUN to the nearest bank and open a new checking and savings account!

i work for a bank and i cant access that site...so...

Originally posted by clever
Is there a chance that collection agency will allow to pay it off in small installments? I mean if I'll get hit with that one big bill at once, I'm for sure a gonner.

Yeah, my credit history is going to be a mess for sure - but I'm ready to coop with that, I mean I know I did a big mistake messing with the bank. That's what happens when you get your first bank account and take out money thinking you are going to pay back when you just lost your job - I'm a total fruit. :o
If you begin to make small payments, most agencies will work with you. As someone else mentioned, don't ignore them. I don't know how old you are, however, you may soon realize (or it may take a few years) a bad credit rating can affect your entire life. Makes it difficult to get an apartment, a house, a car, etc.

$1200 is a lot of cash, but not so much you can get out of it. Begin making payments. If you sent $100 per month you would have it paid off in a year. The bank will respect you, future creditors will see that even though you have the blemish on your record you paid off the debt, and you will be able to sleep at night.

The agency may tell you they cannot accept small payments. Just send them anyway and keep a record. If you don't have a checking account where you can keep the checks, use money orders and keep the copies. Once it is all paid off, ask the bank for a letter showing it is all paid off.

Good luck. Do make the effort. It will pay off in the long run. You may not see that now but in 10 years, you won't be still fighting this issue.

Keep in mind as well, that according to the Fair Credit Act, that if they refuse ANY payment, regardless of how small it is ($5 and over), your debt is considered paid, because they have refused payment (that came from our attorney). If they refuse the payment, you will then have grounds to fight them on it.

Just make sure you document the person's name/ID number, who said, they won't accept the amount.

However, the fact that the majority of collectors know this, they will usually never refuse a payment. So, this gives you some hope to pay the debt.

Hi Guys,

Thank you to all of you for taking your time to help me out and mentor me on this whole issue - it definitely lifted some weight off my shoulders.

Took me time and sweat, but the bank actually worked with me and gave me a chance. I have until June 25th to pay it off - very, very good!

I'm just glad it all worked out, & now I have a chance to make up my big mistake without being left in the dust in the end. (What a lesson of life.)

Again, I'm very thankful to all of you for not leaving a brother alone and confused - you all definitely helped me out & were actually the only people to help understand the way collection agency work! I'm definitely going to be more careful with my credit history from now on.

I owe you all! :gthumb:

:D

I owe you all!


Yes, and you have until May 2nd, 2003 :D

j/k

Good luck

I would go get a job too while your @ it :). MCDonalds is always hiring bright smiles, do anything you can to get a steady income . it just shows them that you are willing to do anything to work it off.. even mcdonalds

Talk to them and ry to work out soemthing. They will settle for less than is owed and sometimes waive the interest jsut to get you to pay. If they have to turn it over to a collection agency they only get about $.50 on the dollar so that is a last resort for them.

Don't avoid them. Talk to them. They are willing to work with people that want to work with them.