First, the back story... Due to some personal issues (rather not delve too deep as yet, but it was primarily due to a mental collapse) I was out of work for nearly 10 months, with little savings prior due to another period of unemployment a year prior. I went into full duck and cover mode to avoid my creditors (admittedly foolish). I am now working, making 2k take home base plus commissions (Ill see them starting 2-3 months in, about 2k per month). I have a number of cards that have really built up. One Discover with a balance of 3k that gave me a 9% repayment option with $180 a month payment for 6 months (I can handle this). There are 4 more cards ranging from 2k to 6k (these started at 1k to 3k). I am trying to settle on a repayment with 2, and will do so soon, but the other two have now charged off. My mother received a call 2 days ago from "The Law offices of P. Scott Lowery" (later learned to be Collect America or CACV). I returned the call, anxious to set up a repayment plan, but they demanded 60% (approx $3600) up front to do so. I have no more then $200 to pay them each month, and have no savings to pay this off. When I told them this they immediately told me "we will record this as a refusal to pay" and hung up on me. The called back again today, presented the same option, and gave me the same "I will record this as a refusal to pay and we will proceed with legal action". They also said they mailed the letter out on 1/10, which I have yet to receive. Here are my questions. 1. What is their likely next step in this process? 2. How can I proceed to take care of this matter if I want to honestly satisfy my debt. 3. The phone number originally associated with that card is my mothers, so can they continue to call even if they have my new number 4. I can not afford an attorney, which they obviously know. Is there a cheaper alternative? 5. Do I have 30 days from when they mail the letter, or when I receive it, and how can I prove date delivered? Also, and I know this is asking alot, but is there a recommendation on what steps I should take. This IS my debt (at least the $3800 before lates and overlimits). I do not want them calling my employer, as it could cost me a lot off my respect with my new employer. I am very scared about this matter. I realize my credit is perma-screwed as it is, but I want to make right. I just can not deal with the stress of this, nor do I want my mother dealing with these, as she is recovering from major surgery. Please help
Even though it's your account, you need to make sure the accounts are correct, etc. Send them a letter (certified, return receipt requested) and tell them you need validation that it's your debt (something with your signature) and an accounting of how they arrived at the balance. Also say in the letter that it is inconvenient to receive telephone calls and that you request all communications to be in writing. Read a lot on here. They may already be committing violations, depending upon what they're telling your mother. Never admit to a debt. And paying it may be worse than not. How old is it, and what is the statute of limitations in your state? NEVER say you know it's your debt, and if possible don't even talk to them on the phone. If you do, record it.
And above all, don't be scared. You'll get through this. Regardless of what a collection agency tries to make you think, there is no such thing as a debtor's prison!
