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Collections Law/Hosto and Buchan

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QUESTION: I was contacted by a person from Hosto and Buchan about a Capital One account that turned into a write off. I was asked to pay 350.00 a month to get the account paid. I explained that I was working by demand (substitute teacher) and I could not commit to 350.00. Since I had just paid off another credit card I agreed to send that payment to them. I was told that would be nice because it would show I was doing a good faith payment but if the payment was less than 350.00 that's all it was. This was in Aug of 2012 and in Sept of 2012 I sent them a payment of 50.00. I did this for in Oct and Nov. Just before the Nov. payment I was issued a summons to come to court because Hosto and Buchan was suing me for 4000.00. The original was 3600.
The night before I was to go to court, I received another call from Hosto and Buchan asking if I wanted to settle the account. I told them that nothing had changed and I was not able to pay no more that I was paying. The agent replied that I would be sued for the what I owed. I told her to do what she had to do. When I got to court the next day...I stated to the judge that I didn't know who this Midland Company was and that I was making restitution by paying 50.00 per month. The judge then asked me if I was contesting the claim and I replied yes. The rep for Hosto and Buchan was told to present a copy of all the paper work they had so that I could look it over and another court date was set. So far I have not heard from Hosto and Buchan or Midland. My question is do I continue to pay which I did send a payment for both Nov and DEC. I have not sent Jan payment yet. Also what is my next move on this. I do owe for a credit card but why are they still charging me interest when the account was closed in 2008.

ANSWER: Yes, continue to send the good faith payments until they either prove the debt or have to abandon it. It could be that they have to abandon collection of the debt and have to discontinue collection efforts. If they are able to prove the debt, they will be granted a judgment.  What happens then depends on where you live.  If you give me the state in which you live, i will researsh this for you. I wish you well with this situation.

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QUESTION: I am so sorry for the over site. I live in Memphis TN. Thank you for your quick responce and help. We return to court on March..I forgot the date...but I will find out tomorrow.

Answer
Thank you for your feedback.  In Tennessee, your wages can be garnished for up to 25% once a judgment has been granted.  I never recommend bankruptcy but at this point, your options are limited.  Your best bet, if at all possible, is to try to obtain enough funds to settle this debt.  Remember that all of this depends on if the collection agency can prove the debt.  I wish I had better news.  Good luck with this.

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Ray A Miller

Expertise

I am qualified to answer questions on the following subjects: FDCPA, FCRA and HIPAA as well as medical collections, general collections and collection agency related issues. I trained these subjects at a nationwide collection agency and customer service call center and audited around 150 representatives for compliance to the laws. I have been in the Collections Industry for over 30 years. I feel that everyone deserves to be treated fairly and with compassion and that is the way I trained collectors. Even though I worked for a Collection Agency, I get great satisfaction in helping those who have been mistreated or in need of help with these confusing issues.

Experience

I was the Compliance Administrator with a nationwide collection agency and customer service call center-I have trained hundreds of collectors on the above referenced topics. I have been in the medical collections industry for over twenty years and research these topics on a daily basis.

Organizations
ACA International

Education/Credentials
Some college ACA Certified Collection Specialist

Past/Present Clients
I am retired due to medical conditions and spend a good deal of time keeping current on collection issues.

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