Anonymous
Anonymous asked in Business & FinanceCredit · 8 months ago

Debt collector?

I had a debt that a debt collection agency has been trying to collect for 3k. 

I just received a letter from a lawyers office saying I'm gonna be sued pretty much .they asked me to submit a settlement offer. I submitted 1500 offer . They said no and that they will accept 1800 paid in 30 days or they will file a lawsuit. Also they said they have gotten the debt from the apt complex and not they debt collector who was calling me. Can the original creditor get the debt back from the collector? Also what options do I have in paying this. If I don't pay in 30 days they said I'll have to pay the full amount 

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  • 8 months ago

    You accept their terms or they sue, and if they sue, they win and you owe it all.

    Sure, the original creditor could buy the debt back, as dumb as that would be.

    How old is the debt?

  • 8 months ago

    << Can the original creditor get the debt back from the collector? >> 

     

    In many cases, the collector is just a collector for the original creditor. They work on a percentage basis of what they collect. And in some cases, the collector may transfer the debt back to the original creditor if the collector cannot collect it. 

     

     

    << Also what options do I have in paying this. >> 

     

    Either pay now and save a ton of money, or wait 30 days and be hit with a lawsuit, where you will have to pay the full amount, plus interest and lawyer fees, plus court expenses, plus whatever is standard in your location. On a $3000 debt, you can wind up paying $5000 - $7500. 

    You can also try to talk with the lawyers before they file suit, to give you more time, or to give you an additional payment or two. They do not have to, but they may be willing, to save the time and effort of going to court. 

  • 8 months ago

    Yes, the original creditor can get a debt back from the collector.

    You have two options:

    Pay the $1800 within 30 days

    Pay the full $3000

  • Anonymous
    8 months ago

    Does the letter specifically say they are suing you or does it imply it?  The might be blowing smoke but you have no way of knowing.

    Do you have a garnishable job?  If not, they can sue all they want. How will they collect?

    I worked in it briefly way back when. We NEVER told people we were suing them, even when we were. And even when we thought we were, the attorneys office gave them another chance to pay voluntarily.   But in cases where all of that failed and people refused to pay, we would tell the client that suing was needed and the client ok'd it, then our attorneys would sue them. Winning was all but guaranteed. And after that, it was wage garnishment until it was paid in full.  I had a few call me after the garnishment started because then they wanted whatever I offered, a few hundred a month or whatever. Only then, it was too late.

    The agency I worked at never bought debts. They were all for a % of what we collect. But when we filed lawsuits on behalf of the client, they had to pay the upfront costs...filing fees. Which was taken from whatever we paid them that month.

    My firm never sued for any medical debts. We collected it but never sued. Retail, we would sue over as little as $200.

    But, we would never sue anyone who had made a payment in the last 90 days.   They would tell is to collect.

    We never offered settlements but on occasion when people offered them and it was a large amount, we would ask the client and if they agreed we did it.

    We could not sue on our own and we could not report to the credit agencies. We could run credit reports if we were having trouble finding someone.

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  • 8 months ago

    Tell them if they refuse your offer to go ahead and file and you and your attorney will see them in court.

  • Anonymous
    8 months ago

    "Can the original creditor get the debt back from the collector?"  Depends on whether the debt was actually sold or simply assigned.    The collection agency I use does not purchase debt from me outright.   They get a cut of what they collect.   In other words, I still own the debt.

    "Also what options do I have in paying this."   What do you mean?  If you and the collector can't come to an agreement, they have every right to sue you.   The court can assist them in collecting the money by allowing a wage garnishment.  In my state they can instruct your employer to withhold 25% of your income and forward it to the court.    If you are sued, they're going to tack on all the interest, attorney fees, court costs and there will be ongoing interest until it's paid in full.   Your employer can also charge a fee (I think it's 2% in my state) to handle the garnishment.   If the original debt was 3k, you could end up paying more than double that. 

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