You are here:
- Home
- Business
- Corporate Law
- Collections Law
- general inquery
Collections Law/general inquery
Advertisement
Question
I have been making small payments on my credit card for the last few months. I have spoken with several representatives and told them that I was going through some financial hardships. I'm a teacher and I'm able to pay $700. in one month. I told this to the creditors. I have a good history with the card co. I said I could postdate a check for July 31st and they said they would send me to collections if the minimum payment is not sent by june 25th. Can they send me to collections even though I'm making small payments to them. The last payment was $116. and this was June 11th 2007. What are my rights? I want my credit to remain in tact. I feel they aren't working with me.
Anytime an account is not paid according to the terms you agree to you are in default and in the collection cycle. The collector is not required to accommodate you although in many cases they can.
Postdating a check is not a good practice and is not considered a payment until it is posted. They normally will not agree to hold a delinquent account that far. However you cannot pay out what you do not have.
Put your budget to paper and see what you can reasonably afford to pay and make them a proposal for payment. Your minimum payment should be no less than 2 of the balance. Ask them to reduce your interest due to hardship.
You can also look into a Debt Management Program and get a fresh start and lower interest. For a description of how these programs work go to www.financialemergency.com.
- Add to this Answer
- Ask a Question
| Rating(1-10) | Knowledgeability = 10 | Clarity of Response = 10 | Politeness = 10 |
| Comment | You are truly an expert in this matter. Thank you | ||
Related Articles
- Estimated Taxes: How to Send in Estimated Tax Payments and Payment Due Dates
- Credit Card Payment Protection - Is Credit Card Payment Protection Worth It
- Credit Card Minimum Payment - One Dollar Minimum Payment Myth
- Avoid Credit Card Late Fees: Automate Your Payments
- Credit Card Payment - 7 Reasons to Make Your Credit Card Payments on Time
Answers by Expert:
Michael Brotherton
Expertise
Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. Mike is well versed in Loss Mitigation practices and the legal collection process. He has helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. FinancialEmergency.com is a consumer web site which actively promotes Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).
Experience
Over 40 years combined experience negotiating disputes and resolving financial issues related to consumer debt, corporate issues and mortgage modifications.
©2012 About.com, a part of The New York Times Company. All rights reserved.