If I am being sued by a 3rd party collection agency for an amount I believe is more than what I owed the original creditor, what should I do?

Get Legal Help Today

 Secured with SHA-256 Encryption

If I am being sued by a 3rd party collection agency for an amount I believe is more than what I owed the original creditor, what should I do?

The amount is for $5,649.60 plus interest of 8.75% starting from about 1 1/2 years ago. I currently do not have that due to financial hardship. I am employed,but do not have enough extra income after monthly living expenses are paid. Would like to work this out and get my credit score rehabilitated but have no idea where to start.

Asked on May 7, 2012 under Bankruptcy Law, South Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

First, the third party debt collector has no more rights than the original creditor had, so the third party debt collector can only seek to collect whatever the original creditor could have. That means, for example, that unless the original creditor could have charged you interest, the third-party debt collector cannot. So it is possible that you owe less than they claim; review the terms of your original debt to see what you should owe.

Second, if you want to work things about, try calling and speaking with the debt collector. First have them validate or prove the debt, including their right to it; assuming they have the right to collect, try to negotiate a payment amount, plan, or schedule you could live with.

Third, though, you have to be aware that is is completely voluntary on the part of creditors or their debt collectors whether to come to some payment plan or arrangment--they are allowed to seek payment in full of whatever you owe them. Therefore, you may need to also consider bankruptcy as an option.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption