Ask Experts Questions for FREE Help !
    keis1221's Avatar
    keis1221 Posts: 3, Reputation: 1
    New Member

    Nov 24, 2006, 11:09 AM
    Can a collections agency refuse payment or payment arrangement ?
    I owe a hospital bill of $1000 from back in march and it has gone to a collections agency. Now my problem is, my insurance company actually sent me the check to make the payment. They instructed me to put it into my checking account then send a personal check to the creditor. However when I put the check in my account I didn't realize I had a negative balance so part of the funds were retrieved by my bank. Now since then I sent a letter to the collections agency explaining the situation. I also sent a payment of $150 with the letter and informed them that I would continue to make monthly payments of at least $50 but I believed I would be able to send much more. Of course they left me a message on my voicemail saying "we" have a problem etc... But if I have agreed in writing to make payments can they still contact an attorney and garnish my paycheck ? I heard once before they can not refuse any payment no matter what the amount is, is that correct ?
    mr.yet's Avatar
    mr.yet Posts: 1,725, Reputation: 176
    Ultra Member

    Nov 24, 2006, 12:13 PM
    Normaly they will accept payment, if in good faith you are trying to pay the debt, but you must make monthly payment on time.

    If they refuse payment and return it to you they have dishonor the debt, and that a problem for them. By refusing payment the dishonor cancels the debt.
    qasamm's Avatar
    qasamm Posts: 7, Reputation: 1
    New Member

    Jun 30, 2007, 07:43 PM
    Dishonor of debt only applies under the agreed terms of the debt. If there is no agrement between both parties there eis no dishonor. If the collection agency acquired the debt under an outright transfer they have the same rights as the original debt owner which was probably payment in full.

Not your question? Ask your question View similar questions


Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.

Check out some similar questions!

Credit agency refuses to verify debt, but demands payment (Ontario) [ 6 Answers ]

Hello, Just as a backgrounder, I have placed my original post in quotes at the bottom. The one thing I should add is that we contacted the original alleged creditor (GMAC), who was reasonably nice, but told us that they no longer held the debt and couldn't provide us with any verification. ...

Collection Agency refusing Payment? [ 4 Answers ]

I live in Ontario Canada. I have 2 outstanding student loans (provincial & Federal)... The loans have been outstanding since 1998... when my ex-husband and I lost our business. We both claimed bankruptcy in late 2000 and I received my discharge in early 2002. Since then due to financial hardship...

Collection agency refuses payment/papers filed [ 1 Answers ]

For the past six months I have been making monthly payments to a collection agency. Was told if I don't triple the amount I was sending, the agency was going to sue me. For four months the agency would call me at work and ask if I was going to triple the payment, if not they were going to sue....

Collection refuse payment [ 2 Answers ]

I live in Nebraska and was wondering what is the law when a collection agency refuses payments. I only received a few notices on this 1 account which was $315.00. I was going to college and just took some time off to work to get catch up. I just received my first check and sent them a $50.00 money...

Collection agency refuses payment [ 1 Answers ]

I am attempting to clear up 3 charges on my credit report. Had a very difficult year. Moved three times did not keep up with existing bills. I pulled credit report. Contacted 2 creditors, both in collections, both sending info and were more than happy that I wanted to make arrangements. Third one,...

View more questions Search