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iluvhstry · Dec 7, 2007, 10:38 AM

Hi,
When I was well and had a good job, I opened a credit card with a $3000.00 credit balance. I was paying every month and then got an allergic reaction to a medication they had me on for Crohn's Disease. The effects were so devastating that I lost my job and stupidly used the card for medicines and doctor visits. I finally got on Welfare making $200.00 a month and they would not accept any payment less than $196.00 per month, which was impossible. I lost my house and am temporarily living with my parents and am now on SSI. I asked my bank if they could take any money out of account since I have the payment going in through direct deposit. She said that they cannot touch any disability payments. They call every day and even ask what my parents have in the bank and why don't they help me? I explained that they did help me pay off everything else I owed and are pretty much wiped out. My main question now is, my father paid off my car and I have the title. Can they repossess my car? If they do, how do I get to the doctor and go for my tests? I live in PA so it seems like every state has different laws concerning this. I am on the list here for low income housing which I hope comes soon but I'm sure they'll track me down wherever I go. Does the fact that I am disabled come into play here at all? Thanks!
Iluvhstry

charlotte234s · Dec 7, 2007, 11:01 AM

Unless your parents are involved in this debt (signed papers, cosigned, etc. legally binding involvemnet) it is illegal for them to contact them, and harass them. They cannot garnish your SSI.

Stephieee · Dec 7, 2007, 11:04 AM

What they are doing is illegal. They are harassing you. What your parents have in the bank and what they are helping you with is absolutely none of their business. Tell them your situation, that you attempting to pay them back, and tell them when you will send your next payment. Then tell them to stop calling.

Collection agencies can be ruthless. They get sued all the time, and people win, for the tactics they use when trying to collect a debt. Once you tell them to stop calling, by law, they can't call you for a certain period. Don't know what the laws are in PA, but you should look into it.

I was in a simelar situation with a credit card I couldn't pay off. I just stopped paying it and stopped taking their calls. After a while (like a year and a half), they gave up and squashed the debt (it was like $1500). Keep in mind, though, it totally ruined my credit.

As for the car, if its paid off, they can't touch it. In order to take it, they would have to take you to court, win, and then the judge would have to order it. And with your health situation, that is really unlikely. They probably won't even take you to to court over a $3000 debt. They will probably offer you a settlement (like 40% of the actual debt) that you can pay and they will call it even.

That is terrible to hear that they are bullying you like that, especially with all that you have been through recently. Don't put up with it.

ScottGem · Dec 7, 2007, 11:17 AM

Originally Posted by Stephieee

What they are doing is illegal. They are harassing you. What your parents have in the bank and what they are helping you with is absolutely none of their business. Tell them your situation, that you attempting to pay them back, and tell them when you will send your next payment. Then tell them to stop calling.

Collection agencies can be ruthless. They get sued all the time, and people win, for the tactics they use when trying to collect a debt. Once you tell them to stop calling, by law, they can't call you for a certain period of time. Dont know what the laws are in PA, but you should look into it.

I was in a simelar situation with a credit card I couldnt pay off. I just stopped paying it and stopped taking their calls. After a while (like a year and a half), they gave up and squashed the debt (it was like $1500). Keep in mind, though, it totally ruined my credit.

As for the car, if its paid off, they can't touch it. In order to take it, they would have to take you to court, win, and then the judge would have to order it. And with your health situation, that is really unlikely. They probably wont even take you to to court over a $3000 debt. They will probably offer you a settlement (like 40% of the actual debt) that you can pay and they will call it even.

That is terrible to hear that they are bullying you like that, especially with all that you have been through recently. Dont put up with it.

This is both good and bad advice. You can't say definitively that what the creditor is doing is illegal. The OP incurred a debt and the creditor is entitled to try and collect on it. While it does sound like they are overstepping, you haven't heard both sides of the phone calls.

It is very bad advice to ignore a debt. As you noted it will ruin your credit, but in your case, I don't know what you mean by squashed your debt, but I suspect you haven't heard the last of it. They probably wrote off the debt and sold it. And someday you may find yourself receiving a summons from the new owner. And if you don't settle (that $1500 has probably double or tripled by now), you will find your wages garnished.

Its also not true in the least that they can't touch the car. Whether its paid off or not has no bearing. If they obtain a judgement, that judgement can be used to go after tangible assets. While its unlikely they will take a car, especially an older one, it could happen. On the other hand, PA may allow you to list it as an exempt asset in case you are sued.

It is good advice to tell them to stop calling and only contact by mail. Since they can't garnish SSI and if that's the only money coming into the bank account they can't touch that either (just make sure the bank is aware that's the only thing being deposited).