Okay. So I've been told that if you try to make some sort of payment to a collector and they refuse the amount (say you're trying to be a good guy and make payments but you can only afford like $20.00 a month), that they basically denied that you owe anything and you no longer have that debt against you. Is that true? What are the rules on this kind of thing?

No its NOT true. Where did you hear such garbage? A creditor does not have to accept minimal payments that may not even cover the interest. This has no affect on your obligation to pay the debt.

This would be true only if the creditor agreed to accept a partial payment; you would need to get that in writing. At some point this creditor will sue; I would recommend you start saving $20, $30, $40, etc. per week or month; put it in a bank where you can't get to it so easily. Hopefully, you will begin to understand the strength you get from saving regularly, and you may have enough to pay this creditor; or show the bank you know how to repay in the event it loans you enough to take care of this problem.

If a creditor entered into an agreement with you to accept a certain payement plan and then reneged, you would have a cause of action against them, though maybe not a cancellation of the debt. But the creditor is under no obligation to accept a payment plan they did not agree to.

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Originally Posted by mandy8403

Okay. So I've been told that if you try to make some sort of payment to a collector and they refuse the amount (say you're trying to be a good guy and make payments but you can only afford like $20.00 a month), that they basically denied that you owe anything and you no longer have that debt against you. Is that true? What are the rules on this kind of thing?

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I have a friend who used to be a debt collector. I told him about the whole minimum payment they wanted and he told me they were lying. They aren't allowed to tell you this but, if you send them a $1 a month, they can't bug you. Don't ask them if it's okay, just do it. It worked perfectly well for me. I was stress free as I slowly built up the money to pay them all back. It was totally worth writing that many $1 checks every month:D

Mandy - Stop to think when you were back in school, the 7th or 8th grade, studying about history of the U>S>A> , ( Quote, If you try to pay on your bill or debt. And you are using real usa money and they refuse your money say because you are not paying in full, the amout you are trying to pay,{ IF LEAGLE TENDER THEN SAY TO WHO YOU ARE TRYING TO PAY "" THAT MUCH OF MY BILL OR DEBT IS NOW Paid< ONE CATCH_ YOU MUST HAVE AT LEAST {3 } WITness, it's in the constei. HOPE tjhis helps someone sometime, Good luck & GOD BLESS::::: F.B.E.

They don't have to agree to it, but let them refuse the money, or send you a letter stating that the payment is not accepted if you do the $1 at a time. That doesn't mean they won't sue for the actual amount of course, and possibly add on all sorts of extra fees for collection expenses etc...

They can still call and send all the mail they want... but I doubt you'll ever see that $1 get rejected... it also won't count as full payment...

My own knowledge on the $1 payments are that it worked for bills that did not carry finance charges... as it actually paid toward the principle amount... Now, many doctor's offices charge finance charges that did not use to do so, so you actually lose out on. If your debts are too high, you're better off putting that $1 toward a bankruptcy filing fee...

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Originally Posted by okholdon

I have a friend who used to be a debt collector. I told him about the whole minimum payment they wanted and he told me they were lying. They aren't allowed to tell you this but, if you send them a $1 a month, they can't bug you. Don't ask them if it's okay, just do it. It worked perfectly well for me. I was stress free as I slowly built up the money to pay them all back. It was totally worth writing that many $1 checks every month:D

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Sorry but that's not accurate. That your creditors accepted the payments is odd and unusual. But the creditor has no legal obligation to accept such payments. Even if they DO accept such payments they can still sue you or pursue you for additional payments. And a $1 payment wouldn't even cover the interest, so the result is that your debt will GROW, not shrink.

Sorry but this is BAD advice.