In New York state should you call the collection agency to tell them you are on social security?

Answer 1

The harsh (but honest) answer: The collection agency doesn't care if you are on social security. By the time you get to "collection" status (i.e., not current on your bill so that your account gets sent to collections), you already owe the money and it is considered a valid, past-due debt; your social security status will not change that. In fact, as a previous bill collector myself, I can tell you that many people (many, many people) living solely on social security open accounts on credit; some are able to pay them, and some fall delinquent and go into collections. So no, I don't think you should call the collection agencies (in any state) and tell them you are on social security. For one, you legally owe the debt, even if you can't pay it. Second, any time you call a collection agency, they document what you tell them, update your personal information, including the number you call from, and basically try to make your "file" as complete as possible. Third, that particular agency may decide that you are not worth pursuing (as with any business, collectors will dig through their accounts looking for the ones that will pay - so they can get paid). Note, however, that accounts get sold from one agency to another all the time - ever notice how you'll get lots of calls and letters about an account, then they'll stop for a while, only to start up again in a few months? So, if and when your account gets sold - along with any updated info the previous agency may have received - you'll get another rash of collection activity. And the cycle will continue, sometimes for years (most states the statute of limitations on credit card accounts is 7 - 10 years). At some point your account may actually land with an agency that will sue for a judgment (most don't because it's too expensive), just one more thing you don't want to deal with. In the interest of fairness (and so you don't give up all hope, stay with me here!) I do have a few suggestions: If you're dealing with a credit card account:

1. If you know you're falling behind but are not yet in collection status, contact the holder of the credit card (visa, discover, etc.) and see if you can work out an arrangement with them. Some are more willing to work with you than others, but if you're persistent you may be able to convince them to reduce your interest rate and/or your monthly payment. I've also seen one company "freeze" an account - the debtor couldn't use the card or make any more charges, but as long as payments were made on time, no more interest or late fees accrued. NOTE: if you are paying the minimum payment each month, and only the minimum, you will likely never pay the card off if interest is still accruing. Just something to keep in mind.

a. Know your rights and keep a record. Document each time you speak with someone. Name, date, time, if you get messages at work, if a neighbor puts a message on your door, etc. Bill collectors are governed by the Fair Debt Collections Practices Act (FDCPA) in most states; it's available online if you want to see it. The FDCPA basically says they can't harass you, including calling you at work if it's interfering with your work and you tell them that. Read it, know it, love it - collectors know more than you can imagine about you, the more you know about your rights, the better.

b. Ask for a settlement. Always. And don't let them talk you into anything you can't afford to pay. Collectors usually get paid a commission on how much they collect in a given month, so they want the whole debt - now. They will often offer a settlement (30% off, etc.), but tell you only if you pay "today" or by the end of the month. Don't be afraid to ask for a better settlement, and demand it be spread over several months. Then get it in writing. If it's not in writing, it didn't happen - even if you pay the entire amount exactly as you agreed, you'll owe the rest unless you get a letter from them outlining what the settlement agreement was.

c. Once you pay it, get a second letter from the agency indicating that it has been paid. This is especially important if you intend to clear up your credit - the credit reporting agencies are more likely to remove "bad" credit or at least amend to show a delinquent account is paid if you can show them proof, rather than wait for the agency to confirm (they never do). If you're dealing with a utility account:

Unfortunately not as much room to negotiate, since the utilities will not likely take a "settlement." However, you should be able to contact them directly to spread payment over several months until the balance is paid. The FDCPA also applies to utility bill collectors, so if you feel like you're being harassed, contact your Attorney General to file a complaint. Finally, a note about those debt consolidation companies: Bill collectors will tell you they do not accept CCCS or other debt consolidation agreements. The laws are different in every state; some states say the agencies can't collect on accounts they know are paying pursuant to a debt consolidation agreement, others allow agencies to continue attempts to collect. Find out what the law is in your state before you decide to do it. (And keep in mind the note above - unless the creditor agrees to stop accruing interest and late fees, you will never pay off that bill, even using debt consolidation). If you decide to do debt consolidation, please PLEASE use a reputable one, such as CCCS. If the agency is asking for a ton of money upfront, or you've never heard of it, or it just looks shady - go somewhere else. I have seen debtors who paid a chunk of cash to "consolidate," only to (a) find out the company ran off with their cash and (b) the collection agency is still after the unpaid bill, so they end up paying twice. Not pretty. Hope this helps - a little forsight into the world of collections, and some light at the end of the tunnel. Good luck! You should also know. If this is an unsecured debt ie: credit card. Write the Collection Company and explain your only income is Social Security, and you have no way of paying the debt, because of your current income. Do not say you will pay in the future (this only will put them off for awhile and they start up again) Also, let them know you are Garnishment Proof under the law. They can not Garnish your Social Security income, for an unsecured debt. They can however file suit against you and place a lien on your property if you own a house etc. But, if you plan on living in the house until you die, let them put the lien on, you don't have to pay unless you sell the house.