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Peppers · Nov 30, 2006, 11:27 AM

My husband had a car repoed back in 2000, with a balance of about $9000.
He had been paying $50mo. To a collection agency up until the end of October.

A different collection agency has offered him a settlement of about $3,600 if he can pay it in full. He agreed, and asked them to send us a letter with the settlement amount before he sent a check. The letter, dated November 2nd states that the agreement is good if the funds are received by November 25th. We actually never discussed a timeline on the phone.

To make a long story short, my husband is borrowing the $3,600. From his 401k. He put in the request, a week later the papers arrived, we filled them out... and are waiting for the funds to be deposited in his bank account.

The collection agency wants us to send a post dated check for the entire amount dated November 30th. We do not know exactly when the funds will arrive. When I refused to send a check for money I don't have yet, they replied "then we will sue him and garnish his wages or the offer will double, take your pick"

I asked them to please be patient and they refused.

I'm going to assume that our funds should be available by next week at the most. If they agree to take the money, will that still count as a full settlement agreement? Or should I request another paid in full letter?

Do we have any rights? (time wise for the settlement)

Do collection agencies usually prefer to garnish rather than wait a few more days for a check?

Why would they continue to request a post-dated check if they know it won't clear?

Thanks

RickJ · Nov 30, 2006, 11:31 AM

Send them the post date. Collection agencies may not, by federal law, elicit post dates and cash them early.

Be sure to circle the date on the check - and even attach (and keep a copy) a letter with it that you are sending it per their demand - and that they may not deposit it early.

... that's what I'd do...

Peppers · Nov 30, 2006, 11:40 AM

But I don't know when the funds will be available, If I did this wouldn't be an issue.

The funds were supposed to be deposited last week, but haven't been... apparently it's a long process to borrow from a 401k. And I don't want to bounce a $3,600 check.

RickJ · Nov 30, 2006, 11:48 AM

I'm sorry... and of course I see that today is 11/30 :)

I would call the agency and ask to speak to the collector's supervisor. I'd bet if you sweet talk him - and send proof that the funds are on the way to you - he will keep the settlement offer open.

Fr_Chuck · Nov 30, 2006, 11:56 AM

If they will take a post dated check, send them one dated a month in the future, if you are fairly sure the funds will be in there by that time.

Your 401 people should have a close date.

Peppers · Nov 30, 2006, 12:13 PM

Unfortunately, I have already tried.

His response to me was that if the $$ wasn't on his desk by December 1st, then the settlement offer will be void and will have to double or have wages garnished.

The account was placed in their office on October 29th, I can't believe they aren't being flexible at all.

Don't these agencies have any kind of protocall they usually fallow?

mr.yet · Nov 30, 2006, 12:26 PM

Well it seems they are being unreasonable. NOw it will take them 2 to 3 months to file the paperwork to obtain a judgment before they can garnish your wages.

THey must first do that, they must serve you with a summons to appear before the court, you must file notice to defend.

Now you will get a court date, by this time it's approx 6 month after.

Continue sending the payments you were sending, if they refuse payment than they have dishonor the contract or agreement and the matter could be consider void.

SO, since they are attempting to play hard ball, if me I would tell take me to court, I have been payment all along in good faith in my attempt to pay this debt.

Just my opinion.

LINK FTC DEBT COLLECTOR RULES;
http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm