If I have a debt with a company and have been making payments but they are trying to turn me into collections, what can I do?

UPDATED: Dec 9, 2011

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If I have a debt with a company and have been making payments but they are trying to turn me into collections, what can I do?

I recieved a letter 7 months ago stating they wanted a higher amount each month. I responded to the letter with a counter offer but did not recieve an response. So I continued to pay the amount that I had always been paying. I now recieved a letter stating they were turning me into collections. Can they legaly do his? I have no contract signed with them or no agreement to an amount due each month.

Asked on December 9, 2011 under Bankruptcy Law, Washington


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If you had an agreement with the creditor (or its collections agent) about how much you would pay per month, then that agreement is enforceable; as long as you honored your obligations (e.g. paid the appropriate amount, on time), they could not increase what you owe.

But without an agreement, a creditor is entitled to payment in full when due; they are not required to accept anything less. Therefore, if  you have been voluntarily making payments but they did not agree to that schedule or payment plan, they are not bound to that schedule or plan--they may demand that you pay more, or even that you pay it all at once, and they may sue you if you neither comply with their request nor come to some agreement with them.

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