I am currently in debt with my 2 credit cards. I have worked out a monthly arrangement plan with one, but I have not with the other and now, I have found out that this second account has already been sold to an investor and they are trying to collect. I can not come up with any lump sum to give to them. They are also talking about taking my case to court. I have never gotten in this deep of a problem. I am afraid. How do get out of this problem? I asked for a monthly payment plan, but it seems they really want the lump sum that I cannot give.
You cannot let aggressive collection agents intimidate you; this is exactly what they want. They will use any and every means to collect the maximum amount possible from you. When you talk to them the next time, let them know that there is no way you can afford the lump sum payment and a partial payment arrangement is the best that you can do.
The threats that you describe in your question are a common technique employed by collectors to intimidate debtors. If the collector contacting you is not a law firm licensed to practice law in your state, the collector may be breaking the law by threatening you. Because collection agencies cannot generally file lawsuits themselves, they cannot threaten to do so. The Federal Trade Commission (FTC) offers a wealth of information regarding the Fair Debt Collection Practices Act (FDCPA).
If you feel a collector violated the law, file a complaint with the FTC or your state Attorney General’s office, or file a lawsuit against the collector for violation of the FDCPA, the primary federal law regulating debt collectors.
The FDCPA also requires collectors to stop calling you if you notify them in writing to cease communication. While a request to cease communication will not make the debt go away, it can end harassing credit calls. Be warned that sending a cease communication request can sometime lead to creditors filing a lawsuit since they are no longer able to conduct traditional collection activities. You must weigh the stress being caused by the calls you are receiving against any risk that sending a cease communication request may cause.
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