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I am unemployed and I made a verbal agreement with Capital One to pay $50 per month on a $6500 credit card debt and they agreed to keep my interest at 5.9%. I will resume the original schedule once I am employed. I was contacted by Alliance One saying that they are demanding the full amount and that they can no longer uphold the agreement that I made with Capital One. They gave me 24 hours to make arrangements or they will sue. Their argument is that since I am not delinquent on my mortgage I should be able to find at way to pay them back.
What can they do and what rights do I have since I cannot pay.
Sincerely,
Upper Westsider
Hi Upper Westsider,
It is possible that Capitol One has sold off your debt to Alliance One (collection agency). I don't think you will be able to convince a collection agency(CA), if you only made a verbal agreement with your creditor. But there is no need to lose hope. It is also possible that Capital One still has your account, and has only assigned Alliance One to collect the debt. In that case, you must contact the the customer service department of Capital One. Credit card companies often have "hardship programs" for these kind of situations.
A hardship program is an agreement with your creditor, according to which you are given a payment plan. It has the following 2 benefits:
1) There is reduced interest rates on the debt amount.
2) Your monthly payment is reduced due to a extended payment plan.
If your creditor accepts payments through a "hardship program" you can send a "Cease and Desist Letter" to Alliance One, mentioning that you are already making payments to Capital One. This letter will stop them from contacting you.
Good luck to you. :)
Hi Upper Westsider,
Have you sent a "Debt Validation Letter" to Alliance One? If they indeed send you court summons, you must file an answer to it, within the due date. During the hearing you can request the court to give you some time, to validate your debt. This will give you about a month's time. If you are expecting to be employed very soon, you can request the collection agency to accept a settlement amount. You can also consider borrowing money from a close friend or relative. Though collection agencies threaten to sue debtors, to get the money out of them, in most cases they also want to avoid going to court.
In case you have not sent a validation request to Alliance One and require a sample "Debt Validation Letter", you will find one in the Letters of Credit section.
Good luck to you.
I am unemployed and the collection agency keeps bugging me.
About a year ago I decided to attend Dover business college and I never finished. So later on they sent me letters saying i owed them $8,500. Unfortunately i never really paid attention to them so they sent it to a collection agency and i have tried to pay as much as possible until i got laid off. I let them know but they still keep calling and now they are threating to sue me. I dont know what to do. I asked them if i could handle this with dover but they said no because the collection agency handles everything. Please if anyone has some advice. I dont know what else to do.
UNEMPLOYED AND IN LOTS IF DEBT
I HAVE A FOSCHINI CLOTHING AACNT,LOST MY JOB ABOUT A YEAR AND A HALF AGO GOT BEHIND WITH PAYMENTS,THE ACCNT WAS HANDED OVER TO ATTORNEY AND HAD TO PAY AN AGREE AMOUNT DIRECTLY INTO THEIR ACCNT,ONE DAY GOT A CALL FROM THE CREDIT BEURO ABOUT THIS AACNT AND TOLD THEM IVE ALREADY MADE 2 PAYMENTS TO THIS ATTORNEY AND NEVER HEARD A WORD FROM NEITHER OF THEM.NEVER MADE PAYMENTS SINCE.WHAT COULD HAVE HAPPENED TO THIS ACCNT?
lots of debt
Hi Nina,
What did the credit bureau say about the account?
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