Expert: Michael Brotherton - 8/1/2007

Question
i live in Texas and currently $15,000 in debt. i worked in spa as a nail tech
and the owner shut down the business without getting paid. i had to make
priority and fell behind on this one credit card payment. now my record is in
collectors' hands and telling me i have to pay off the full amount NOW. i was
finally getting back on track (i'm working as waitress for now) and ready to
pay the bill, but they are not willing to work with me. they call me and said i
had to pay $1500 today which would be actually taken out of my checking
account within 5 days, and that would help me to get extra 7 to 10 days to
pay off rest of the amount.  they said if i don't give them anything today, my
original creditor would sue me that same day. i got freaked out and, how
stupid i am, i gave them my checking, routing number, check number. was
this a big mistake?? should i dispute this charges??

i just don't understand they aren't willing to work with me. it's not like i'm not
trying to pay or anything. i need the payment plan. i rent apartment and i
don't have anything. this collector told me i should never contact the original
creditor. is this true?? is there anyway i can work this out? the bottom line is i
don't have $15K. but i'm willing to pay monthly.  thank you in advance for
any advice you offer

Answer
First, you cannot pay what you don't have. Second, don't let these people intimidate you. You have rights. Third, NEVER, EVER give banking info to a bill collector or make a payment by phone. You may be untouchable from a collection standpoint since your income is, I assume, coming from tips. Check your bank account daily to make sure they do not dip into it. Collectors have been know to raid checking accounts and drain them dry so make sure no money is in the account for now. You may have to close the account.

Put your budget to paper and write them a letter telling them how much you can pay. DO not accept any more calls from this company. If you send a letter use the phrase "please cease and desist all phone contact with me and remove all phone numbers from my record". Send the letter by certified mail, return receipt requested. This should stop the harassing phone calls. If they persist file a complaint with the Federal Trade Commission.

If you need help with this please call my office 877 270 8204.