They Sent Me To Collections!

**cmdarlin** · 05-15-2008, 08:43 AM

DH and I have had trouble with things around here since before I lost my job in February but they took a turn for the worse then. We've gotten behind on the credit card and house payments and have been juggling bills to keep food on the table. Well, last month he was diagnosed with MS (just waiting to start the treatments) and my Dad had loaned me some money to catch up on things. The credit card people had threatened to send me to collections if I didn't pay $460. I told them I couldn't and as their records should show, I've been trying to work out some type of financial arrangement with them. I told them I could make one payment of $230, thank you Dad, but that was it for now because my husband wasn't working due to a disability at this time. The supervisor told me to 'write another letter' and they would contact me.

That was on April 17th. I wrote my fourth letter in 2 months and finally get a letter from them asking me to contact them. I call.... they won't take my calls, I've been turned over to a debt collection agency! They didn't wait 30 days from my last payment to do it! I'm just so mad. I called them weekly and was always told they couldn't help me over the phone, I had to 'write a letter'.... what good did that do when they still turn us over.

I don't know what to do now. I think we need to get a lawyer..... Anyone else have any suggestions? Thank you for letting me vent.

Debbie in Missouri

**bumplett** · 05-15-2008, 08:46 AM

I'm sorry you're having such a hard time at the moment - but you still owe what you owe.

good luck getting everything paid off and up to date - I wish you the best.

**Momto2Boyz** · 05-15-2008, 08:52 AM

Ok, this might sound callous and rude (not toward you, but toward the CC company), but here is the deal with collections... If you are struggling financial, being sent to collections can actually be the best thing for you! The credit card companies are incredibly hard to deal with, as you've found out. Collection agencies get paid percentages of the amount recovered, and they seem to understand better than the CC company that you can only pay what you can pay.

The collection agency is very likely to give you a settlement option. Most are willing to take 2/3 of what you owe, it depends on what the CC company, has authorized, but when they fill out the forms to the agency, they give them a bottom number they will accept.

I worked in the financial world for years and dealt with collection agents every day. If I were you, I wouldn't waste my money on a lawyer, it won't help and the blemish is already on your credit and probably won't come off.

So work on a settlement with the collection agency, and see what you can do about it. They won't accept payments, so you'll have to save until you have close to what you owe. But I would say that once you have about 2/3 of what you owe, give them a call and see if they take it. I'll bet they will!

**alch** · 05-15-2008, 09:40 AM

I say forget the lawyer and talk with the agency. Try to work out a payment plan and then destroy your credit card. Check into Angelfoodministry.com, they save me alot on groceries. God bless.....

**Dancing Lotus** · 05-15-2008, 09:47 AM

I understand very well where you are coming from.
In your case you are best to wait it out. Keep saving your nickels and dimes until you have close to what they want. Wait for the collections to make you an offer and then jump on it. It will show on your credit as a settlement.

You other option is to pay them nothing and let they take your to mediation. In your case the mediator will most likely dismiss your debt and you will end up paying nothing. Again not good for your credit but I don't see that as your biggest problem.

I know some others won't agree with my advice but thats just my two cents.

**tbs727** · 05-15-2008, 10:08 AM

These girls are right about collections, just let them do their thing and save up your money until you can offer them a settlement. The only thing I have to add is to pay your priorities first. Pay your house payment, keep food on the table, keep the lights on, and take care of your transportation. Credit Cards are at the bottom of the priority list.

**momto6** · 05-15-2008, 10:31 AM

Have you thought about looking into cccs? We went with a company in October and we are still paying interest on the cc but it is reduced and we have one combined payment that we pay to the cccs company. It will stop any collection calls you will get and they put you on a permanent payment plan until it is paid off. Most credit cards will "reage" you account after you have made 3 consecutive payments to make your accounts report current to the credit bureaus. It is not easy because they expect the payment every month but it might get your payments lowered. We were behind 1 month and all but one of our credit cards raised our interest rate over the moon because of that one month. It was the first time in 14 years we had ever been late. It made all of our monthly payments go way up not including the month we were behind. I called the credit card companies and NONE were willing to work with us. CCCS did what I was not able to do. You have to cut up the cards and quit using them entirely. It is a good program and you are still paying back everything that you owe plus interest. It may not be for your situation but you might look into it. Good luck. Amy

**cissylu** · 05-15-2008, 02:51 PM

you`ve been given great advice . don`t waste the money you need on a lawyer.go thru collection`s. her`s sending youa hug and try not to worry.

**Cymbaline** · 05-15-2008, 03:10 PM

I'm going to be the only person here who disagrees with some of this advice. I don't think allowing collections to offer you a settlement for a smaller amount is good advice.

My reason is because this could ruin your credit score. It's already bad that your credit history will show that your account was turned over to collections. I know most people may not be worried about credit score however since it takes 7 years for items like these to drop from your credit report who knows where you will be in 7 years or what you will need your credit for.

My advice is to work with the collection department and work out some sort of payment plan and stick to it.

**YankeeMom** · 05-15-2008, 04:12 PM

Not only could accepting a settlement ruin your credit score (which is probably already taking a beating if you are behind on things) but in some states, you have to report the settlement on your income taxes AND the collection agency could sell your uncollected debt (the difference between what you settled on and what was owed) to another, more ruthless, collection agency years down the road and this could come back to haunt you.

I second the suggestion for the not-for-profit Consumer Credit Counseling Service. That's what we are using.

**cmdarlin** · 05-15-2008, 04:12 PM

Originally Posted by bumplett

I'm sorry you're having such a hard time at the moment - but you still owe what you owe.

good luck getting everything paid off and up to date - I wish you the best.

Never denied that I owed it or wanted out of it. Just said we've been making smaller payments and trying to work something out. Feel like they told me one thing and then did what they planned on doing after all.

**cmdarlin** · 05-15-2008, 04:25 PM

I guess I should of filled in some blanks. DH was diagnosed with MS and put on 4 mo disability by his doctor. The short term disability company is stating that they don't think he'll get his disability during this time basically because they say they don't think he's seeing the doctor enough. I've been trying to find work, sell whatever I can simply because his medication and insurance alone are going to run almost $400 a month. We were told by several that we should talk to a lawyer.

We did qualify for food stamps so that will help with food, but when basic bills are running about $1200 plus the insurance and meds, plus the hospital bills (cause his health insurance company is giving us trouble with paying also)... I'm personally feeling overwhelmed and at the end of my rope. I went from a job that paid all the bills plus some to one that was considerably less. and now I lost it. His job barely paid anything after his insurance and child support..... I've applied for jobs and nobody seems to want me.

Ok.... I quit for now. Was just needing to vent not wanting to feel more worthless than I already did. I pray no one ever feels like I am now.

Debbie in Missouri

**Samigirl** · 05-15-2008, 05:10 PM

I was just thinking of you this morning, wondering how things were going for you and your husband. I'm so sorry you have such a huge burden to carry. You must feel like you have the weight of the world on your shoulders. Do you have any kind of support system around you...family, clergyman, etc.? I hope you're not dealing with this alone. Sending good vibes and hugs your way...

**bumplett** · 05-15-2008, 08:17 PM

Debbie ~
I don't think anyone here wanted to make you feel worse, just trying to offer an opinion, which is what you asked for....

Just remember that it's really hard to read the tone in print ~

just take it one day at a time..... breathe in.... breathe out....

good luck.

**mombottoo** · 05-15-2008, 09:41 PM

Originally Posted by cmdarlin

I guess I should of filled in some blanks. DH was diagnosed with MS and put on 4 mo disability by his doctor. The short term disability company is stating that they don't think he'll get his disability during this time basically because they say they don't think he's seeing the doctor enough. I've been trying to find work, sell whatever I can simply because his medication and insurance alone are going to run almost $400 a month. We were told by several that we should talk to a lawyer.

We did qualify for food stamps so that will help with food, but when basic bills are running about $1200 plus the insurance and meds, plus the hospital bills (cause his health insurance company is giving us trouble with paying also)... I'm personally feeling overwhelmed and at the end of my rope. I went from a job that paid all the bills plus some to one that was considerably less. and now I lost it. His job barely paid anything after his insurance and child support..... I've applied for jobs and nobody seems to want me.

Ok.... I quit for now. Was just needing to vent not wanting to feel more worthless than I already did. I pray no one ever feels like I am now.

Debbie in Missouri

You should talk to a lawyer...about suing the insurance company holding his disability insurance payments from him. Is there any chance he can qualify for Medicaid in addition to his regular insurance? If he can qualify for Medicaid it will pick up any copays not covered by his regular insurance and it may even pay his insurance premiums. As far as being turned over to collections goes...ever heard the phrase "you can't get blood out of a turnip"? Well you can't squeeze money out of someone who doesn't have any...back in the day when we were squeezed...whenever someone would call me I would tell them they really screwed up...because now their name wasn't going in the hat next month

!

Don't let anything in life beat you down, it isn't worth it! You can only do the best that you can do, with what you have to work with...and that is just the way it is. (((((((HUGS)))))))