Expert: Ontrack Financial Group llc - 11/11/2008

Question
I was unemployed for about 6 months and fell behind on my credit cards.  I called the companies and they were of no help.  They continued to call, I finally went back to work and was behind on everything and am currently playing catch up.  I am trying to avoid civil actions with my credit card debt, I accepted a settlement that was forced down my throat, but was not able to meet the last payment, so the debt went back up, can they do that?  I am talking with all of the collection agencies and trying to pay them out, but the collection agencies are telling me what I have to pay to avoid civil actions and I can not meet the payments.  My question is- do I have to pay what they say or can I tell them I can afford to pay and pay this amount and if so will paying something toward the debt prevent civil action?

Answer
Sue,

Thank you for your question.

Chances are the debt collectors are using intimidation and harassment while trying to collect this debt.

I really doubt they are attempting civil action ( it's illegal for then to refer to legal action if they do not intend to take it ).  It's another strategy a debt collector uses to extract money from consumers.

The debt collector will place a multi-payment settlement on the table, provided the consumer gives them a series of post dated checks.  If one of the checks bounces or a stop payment is placed, the debt collector is instructed to contact the consumer and "pull" the settlement offer.

The question is going to be answered two ways.  

The debt collector can file judgment if you do not comply with their request. (They must make sure filing for judgment is in the contract with the original creditor, no agreement is needed if the account is purchased, unless the purchased account is outsourced to another debt collector.)

If the collector does not have the authority to file suit you can remit payments to them.  The payment will be applied to the account, however it will not stop the collection process.

Sue,

In reality you don't need to go through the headache when dealing with debt collectors.  

Ontrack Financial Group will protect you from intimidation and harassment from debt collectors and debt collecting law offices.  We will deal with each debt collector on your behalf.  

If you would like more information please contact us using any one of the following.

1. Text the word "Protect" to 41411
2. Visiting   OntrackFinancialGroup.com/Contactus.html
3. Call us at 888-686-6834    

**Each case is reviewed by our board before being accepted.
  
Eddie Saleh

Ontrack Financial Group