Reader Question: Debt Collector Won't Work With Me - Page 2 of 2

3) What to do if you have verified the debt then asked for a payment plan you can afford. The debt collector (this has happened to me; I have been unemployed over 2 years & do not receive unemployment benefits) refuses to take what you offer (it’s their right), and will then sue you for “refusal to pay”.

A debt collector is not obligated to accept whatever payments you feel you can afford to make. At the same time, it would be pretty unusual for a debt collector not to accept a payment they receive in the mail! However, I don’t recommend you pay a debt collector until you have something in writing that verifies the amount you owe and a payment schedule.

So what if they mark you down as refusing to pay? It’s an idle threat. You could counter that pressure tactic by sending them a certified letter stating what you are willing and able to pay. You could tell them in the letter that if they don’t accept your payment you will mark them down as refusing to accept payment. Show them how ridiculous their threats are.

Quite honestly, Kathy, if you have been unemployed for two years, it may not even make sense for you to pay anything on this debt. If you don’t have the income or assets to pay, you could send the debt collector a letter telling them to stop contacting you again. It won’t stop them from suing you, but if you are able to show them that you don’t have anything for them to go after, they may decide to put your file at the bottom of the pile, or send it off to a different collector. Again, by meeting with a bankruptcy attorney, you will better understand your options.

[Resource: Consumer Guide to Debt Settlement]

They will also mark you down as “refused to pay” & sue you if you refuse to let them access your bank account for direct debits. My husband & I have BillPay with our bank, and when I offered to pay them monthly through billpay, the debt collector refused, saying they don’t have the technology to handle it (!) You mean you have the technology to take money out of my account through direct debit, but not to receive my bank generated checks through billpay? See BillPay checks don’t have your checking account information, therefore, it’s safe. The debt collectors don’t like it because they can’t get access into your bank account.

Never, ever, ever give a debt collector direct access to your bank account. You are smart to stand your ground on that. Be firm. If you do pay the debt collector, a cashier’s check or a prepaid card is a safer bet. But, again, only pay the collector if you have something in writing that details what you owe and how your payment schedule will work. And keep good records of every payment you make.

Hope this helps, Kathy!

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[Article: Top 10 Most Misunderstood Facts About Debt Settlement]