My small business has an old advertising debt that has been sent or sold to a collection agency. The debt is $8000 including the interest. Over the last few months I have paid down approx. $2000 of it giving them every spare dime I bring in. I pay large chunks and try to send something at least every two weeks. In spite of my effort to get this paid down they are now threatening to investigate me, my bank accounts, contact my suppliers and the state. They even had another "investigation" contact me. I could understand it if I wasn't paying or if I only sent $10 here and there but Im making a real effort. Any advice? I contacted the original creditor but they said they sold it....apparently after I talked to them they called the collection agent too. They have made settlement offers but I never get a few thousand dollars in a chunk like that.
Collection agency.
Tell your collection agency in writing that you are unable to go for debt settlement and you want to make a payment agreement with them, where you will make partial payment to them.
The payment agreement will allow you to make regular payments to pay your debt in full. Request this in writing and keep a copy for your records. Try to explain the collection agency your full situation and they may accept your proposal.
If they continue to harass you, report it to the Better Business Bureau, the Federal Trade Commission, or your state's attorney general's office.
debt
Hi ddd,
If you are not making the payments according to the original contract, then the collection agency can sue you. So, can I know if you are making the payments according to the contract? If you are unable to make payments according to the original contract, you can send the collection agency a hardship letter, mentioning about your financial hardship. Get the payment agreement in writing.
Thanks,
Aaron