Unfortunately, yes. If the debtor does not meet the agreed requirements of the written contract of repayment, the lender/agency can seek a judgment via a civil suit. Such a suit inevitably results in a judgment for the lender which can then be used as a garnishment of wages or other methods allowed under the laws of the debtor's state.
It would be unlikely that they would choose to do so, as that would result in more expense (that they may or may not be able to recover) and is time consuming.
Please note, the lender/agency does not have to accept a lesser amount than was agreed upon as payment. On the other hand, the aforementioned can accept the amount tendered and still use other means of recovering monies owed. Sounds a bit unfair but it is in the majority of instances legal.
They stop collecting
Yes, with a judgment, but if you're head of the household, no. Experience: I own a collection agency.
Its your choice. What amount would they get IF they garnished your wages? More or less? Do they have a judgment for the balance due? IF so, they gave you a choice.
If they've sold your case to a collection agency, they have been "paid" for your debt with the money the collection agency gave them for your case, so, no, they can't legally sue you - as far as I know.
Personally speaking, it is better to settle with a collection agency rather than making monthly payments. Theres only one ceveat....you must pay the collection agency in full. Example, lets say you owe $1000 to a credit card company. A collection agency will say, pay $600 NOW and this will settle the balance. So, if you dont have $600, its a 'catch-22'. You are better off making the monthly payments until the $1000 is paid.
A collection agency cannot call your employer to garish your wages. In order for your wages to be garnished, you must be sued by the collection agency. And the agency must win a judgment against you.
No
They stop collecting
Yes, with a judgment, but if you're head of the household, no. Experience: I own a collection agency.
A collection agency is not hired to get the amount paid in payments they are paid to get the amount in full. At this point the place you originally owed the money to and did not pay may or may not be willing to take payments being that they have now hired the collection agency to get the money from you. YOu can call the original creditor and tell them you are willing to pay and if they say no then you must pay the collection agency, I have never heard of any of them taking payments. When they get hired they try to collect as much as possible of the owed amount so they can get a higher commission. They dont want payments they want money in full....
Because they don't. It is a lot of agency's policies.
Its your choice. What amount would they get IF they garnished your wages? More or less? Do they have a judgment for the balance due? IF so, they gave you a choice.
Unless you have a specific repayment plan that the collection agency agreed to, there is no legal reason that cannot sue the cosigner.
Collection agencies have no authority to do any such thing. If your case goes to court, and the court rules in favour of the collection agency, then your retirement could be garnished.
if collection agency is not from your lender, but third party, then you need to fax them proof of your payments to your lender or financial insitution and have them send you a letter stating that they will not report you to credit bureau. and also have them contact the collection agency you are making payments. asian623 http://www.myspace.com/scionturboracing
Generally, a court will only allow unemployment compensation be garnished in the case of spousal or child support.
If the debt was properly assigned by the original creditor, yes. If you are making payments to the Original creditor than ask them to pull it back from there Collection agency, then dispute with the CRA's and when they update it should delete