Expert: Ray A Miller - 12/3/2010

Question
I was out of work for 4 years but finally got a job. However I fell behind on payments to Discover card. Eventually their calls stopped and I got a letter from a law firm, Farrell & Seldin in CO. The good news was that I was able to pay something and we worked an arrangement where there would be a payment withdrawn from my bank account every month. For the 1st 3 months the payments happened as scheduled. On the 4th month they did not withdraw the funds which were there in my bank account as agreed. 2 weeks after the due date came and went, I got a letter from the law firm saying I was in default and to contact them. I contacted them and offered to send them a check to cover months 4 and 5 payments. They refused my offer and told me the account was pulled. I asked whom could I contact to, and they told me they did not know. I thought that was pretty weird. Then 1 month later I find my bank account empty, the law firm had presented my bank with a notice I have yet to see. I am likely to open up a new bank account and not get paid by direct deposit anymore. But how can I deal with a company where we have an agreement in place, I was performing on the agreement and then they appear to refuse my offer to pay them? How can I get a fair hearing? This whole thing stinks. I feel terrible about the debt but I an trying to do the right thing and I feel like I am being screwed.

Answer
I hate to start off an answer by telling you something you already know, but never allow a "law firm" touch your bank account.  They bought this account for pennies on the dollar and will go to what ever means necessary to collect.  The best way for you to get out of this is to offer them a settlement, borrow the money if necessary, pay them and wash your hands of the matter.  What ever you do,GET IT IN WRITING!  If you have any more questions please let me know.