Advice on help with bills in collections - The Bills.com Blog

A collection agency contacted me (via my brother who lives in another state), telling me that I owe $ 52.21 for a telephone bill who was unpaid since 1997. Now, that's more than ten years ago. I don't remember at all this bill and when I asked the person of the collection agency to send me some kind of paper work she insisted that I don't need it and suggested that I pay the bill immediately. Is there a statue of limitation by which their request is invalid since "they" never contacted me during these past 10 years and a half? Obviously is a matter of principle, but I would like to know how to proceed in this matter. Please advice. Thank you so much. Carlo Carnevali

You should definitely insist on paperwork. You should also obtain a copy of your credit report to see what other items may be effecting your credit. You can get a free copy of your credit report by visiting www.annualcreditreport.com All states have a body of statutes in their codes of law called, “Limitations of Actions,” commonly referred to as the statutes of limitations. The length of time a creditor has to sue you depends on your state of residence and the type of debt. Check out http://www.bcsalliance.com/y_debt_sol.html This site has more information about statutes of limitations and a list of limitations by state.

My mom just recieved a summons for unpaid debt for 1,000,she just got out from the hospital due to pancreatitis, 69 years old,recieving her $400/month direct deposit,this is the only money she's depending for her needs,will that be garnished?how could we protect her bank account from being levied? Her account is citibank,please give me the steps obviously she cant pay that debt.

Social Security benefits, pension payments, and many other types of income for the elderly and disabled are exempt from garnishment, which means that most elderly Americans do not need to fear wage garnishment if they are unable to pay their bills. However, it is very important that if you have other funds -- such as money you saved on your own, an inheritance, or lightning struck and you won the lottery -- to NOT commingle your other money with the retirement income. If you do have other funds, put them in another account. Alternatively, you may want to open a new account when you start receiving the retirement benefit and have that income be deposited directly into that account only. That way, if a creditor receives a garnishment order, it will be clear to your bank that they should not seize the contents of this retirement-income account. To learn more about wage garnishments in your state, see this page http://www.bcsalliance.com/y_debt_statelaws_garnishments.html

I received a call from a New Jersey law office saying I owe more than $10K to Nation's Bank, which is no longer in existence. I was offered to settle this account in 1999 for $1,600. I replied to Nation's Bank saying that I would accept this offer and asked them how I could pay it. I never heard back from them. In 2007 our apartment was flooded with sewer backup and most of our valuables, including paerworks, were destroyed. Now this legal firm offers to settle for $4,000 only for the next 24 hours. Since I haven't heard from anyone for over 9 years, and have not worked for over 3 years, I can not afford this $4,000. What can I do< Thank you. Jerry Miller

First, you need to determine the statute of limitations (SoL) for collecting debt in your state. See the Bills.com State Consumer Protection Laws and Exemptions to determine if a court in your state will enforce a judgment on debt this old. If the SoL in your state has not passed on the debt, ask the creditor (the law firm, in this case) to send a debt validation. Oftentimes, when a debt is sold from one firm to another, the actual proof of the debt is lost. See the Bills.com Debt Self-Help Center for sample letters to send to the creditor. Finally, if the SoL has not passed and the creditor has proof of the debt, you can negotiate the balance. See the article Debt Negotiation and Settlement Advice to learn tactics and strategies for dealing with creditors.

I am deliquent in my car payments and was being contacted by few people with different numbers. I started working with a representative specified as working for WFB which would work with me if immediate funds of 125.00 were sent by money monogram to halt the charge off process. I did what was requested and have since made a full car payment in good faith before the 30 day period required. Within about 9 days of the initial money gram I started receiving calls from another number/department saying the first rep was no longer handling my account. I contacted the intial rep with whom the agreement had been worked out and she stated to keep working with her and make the next full payment as scheduled. However, the second rep called the day after I had went into a local branch with the full monthly payment stating that the bank would be returning my payment unless the full 150 day late portion could be paid or the vehicle must be turned in. This is beginning to appear fishy to me since the story is changing now that I've begun to comply and continue to get a bank note in the mail. Please advise. THANK YOU

In general, it's a good idea to get a workout plan or a forbearance in writing. Contact the first representative and ask him or her to put the plan you two have agreed upon in writing, and send it to you. That way, if you have a difficulty with the left hand, you have a note from the right hand explaining what has been agreed to.

I have been currently placed with a collection agency over several medical bills, which they have consolidated. They are insisting on payment in full, telling me they will take me to court if I don't pay it in full. I asked if we could set it up on $100.00 payments per month and they told me no. They said they don't accept payments, they have to have it paid in full. Is this legal?

Absent an agreement to the contrary, all medical services are payable in full. Unless there is law in your state to the contrary, medical service providers are not required to offer payment plans, but the smart ones do. See the article Debt Negotiation and Settlement Advice to learn tactics and strategies for dealing with creditors.

I am delinquent on a credit card account, which has been turned over to a collection agency. Their tactics are aggressive--when they couldn't reach me (I was out of town for a family death), they called neighbors, telling them they needed to reach me for an urgent matter. I live in New York--is this tactic legal? Thank you in advance for the info.

I would consider the conduct you described as prohibited under the The Fair Debt Collection Practices Act. You may have a cause of action (a sound legal basis for a lawsuit) and you may want to consider consulting with an attorney licensed in New York who has experienced in consumer law to discuss your options for filing a lawsuit against the collection agent. See the National Association of Consumer Advocates (NACA) Web site for a list of consumer rights attorneys in your state.