Just one of numerous CA's after me. I'm trying, trying to get right with them, but have a reduced income to work with at this point and (I deserve it) they are not as lenient as my finances would dictate. So I'm not having a lot of success. That's why I got so behind with them, reduction of income. They don't care. But I just wonder of this latest scenario, one specific cc which has turned over to a CA. I don't dispute that I owe these folks (or at least the original cc, it's now in the hands of a CA). I do dispute that I owe that much however. But anyway, that's not my point. I just wonder of what was said to me, how much of it was borderline illegal. I called her back. She says that I owe $2200. I don't know for certain, been a while since I paid any cc's. Last I remember it was about $900. But anyway. I was offering her a monthly stipend (as I am with many of them, and it's not proving succesful very much), $25, until I can get some of the cc's paid off, and then will double up, snowball the debt. Nope, that wouldn't do I was told. She was, however, she told me, willing to settle the debt, at this time, for $1100, but had to be paid before the end of the month. I told her that I don't have $1100. Explained that I am calling all of the creditors and trying to work out what I can, but that I do not have $1100. She said to me "well $25 monthly is not going to cut it, this is still on my desk but it should've already gone to legal, for persuit of this debt, ......... so I really need to work out a settlement with you, and the best we can offer you is $1100 before the end of this month". I repeated again, that I don't have $1100 (and I don't). She then said this (pulling stuff out of her ear, had to be), "well why don't you forgo a house payment, maybe if you call your mtg company and ask them for a deferrment". I've already tried doing that, my mtg company does not defer, unless it's a medical issue. And it isn't. I told her that. She said "well your house is worth $261K, why don't you try borrowing against your house". I said to her "mam, with all due respect, I don't know where you are pulling that number from, ......... but there are homes in my neighborhood that have been on the market for a LONG TIME, for $135K and $140K, and they are not selling, I owe more on my house than that, maybe it was worth $261k, before the bubble burst, but it certainly is not now, and even if it was, you are looking at my credit, I couldn't get financing right now to even buy a jug of milk, much less thousands to pay off creditors". She said "well then I am going to have to refer this on to the legal department and put you down as a refusal to pay". I said to her "I am not refusing to pay, I am offering you what I can pay, for right now, I cannot pay $1100, that isn't a refusal, that is the fact, I can't pay that amount, I can pay you $25 monthly, until I can get some things paid off, I am asking for a hardship measure". Where'd she get that from? That my house is worth $261k? WHAT?!?!? I wish it was. I would sell it, and get out from under all this crushing debt. Maybe it was, before the bubble, but it certainly is not now. So she then said "well I will have to forward this on and mark the file that you refused to pay and forward it for litigation". That was that. Within a couple of days another individual called me, from the pre-litiagation dept. She said she was reviewing the file before forwarding it, and wanted to ask me what is my reason for refusal to pay. I told her what was explained above. She said "well I have a little more authority to settle this debt, .......... if I offer you, before the end of the month I need it, will you pay $372 and by the end of this month, and if you will we will call this debt settled". I told her I would (and I didn't pay my overdue phone bill, which is now shut off due to non payment). Asked her to forward a settlement letter, which she did do. And so that debt is settled. Yes, I know a big mark on the credit report, but at this point, it's about survival. I can't worry about my credit rating at this point, it's already shot to hades. But what gives with the woman telling me my house is worth $261k. What the heck?!?!?!
So, what's the question? Why do collectors tell you the things they do? a) because they can b) because their job is to take money from your pocket and put it into theirs. Given how you describe your situation, what the collectors say to you would be the last thing on my list of worries (right down there with your credit rating). If were in that deep with that much stress, I'd be talking to a bankruptcy attorney about Ch. 7 (been there, done that). It sounds like you need to review your priorities: Food and shelter first, creditors, credit rating, and what collection agents think of your house value last. If paying creditors is putting your food and shelter at risk, then it's time to reevaluate. You really don't want to be broke, in debt, AND homeless. Good luck getting back on your feet.
