HELP – Dealing with a Collection Agency
Question: Hi, I have been recently contacted by a collection agency for a credit card that can not be paid.
I first tried to sellte this with the bank, but things didnt work out, however the bank was quite understanding and let me know that on the 10th of April, a Collection Agency will be calling. And so they did. at first dealing with them was very professional, I have been honest and truthfull of what monies I have at my disposal. I have been trying to make a settlement with the collection agency, however the monies they want I just dont have, my offer is a little more than half, but they want 80%.
There solution is for me to go get yet another loan/credit card (high interest no doubt) and pay up the additional 30%. (and I doubt that I will get approaved anyways)
They want me to sell of all of my registered and non registered investments (which I fully support), this is where the 50% of the monies oweing will be coming from. They initially agreed that any tax monies held back will be taken off the amount oweing. But instead of taking it from the 80%, which I was lead to believe, they now say that deal is off the table.
Today things took a sour turn. I was trying to negoiate a deal, my deal was to remove all of my rrsp’s, and my investmets. That would amount to about 67% of the monies they are demanding (80% of the total outstanding) For some reason they think I have not been honest with them, (which I have) and they want the 80% by the 22nd “or else”. I have asked them what they plan on doing? All I know is I will be served some legal documents tomorrow. Beats me what it is, no one would tell me. I asked several times.
What can I do? I have offered up everything I possibily can, including some of the Harper bucks (300 a month for the kids). They are backing me in to a wall and they made it very clear that they want the full 80% or legal action will be taken against me on the 22nd of April.
What can they do? I figure they can take me to court, and get a judgement against me. My house has no value, it is fully mortgaged, I doubt a judge will order the sale of my home that will net the collection agency maybe 1000.00 bucks, plus putting a family of 5 out on the street. I guess what I’m getting at is I just dont see how the courts are going to get more than the 50% out of me either. Maybe force me to sell a couple of kids?
I am so confused, fustrated, and feel sick to my stomach being called a lier today over and over again on the phone.
Please help…. I know that they will be calling again in the morning…
Helpless in Nova Scotia
Answer: The most obvious solution to your problem would be to file a consumer proposal. Working through a licensed trustee, you would offer all of your creditors a “lump sum” proposal. The lump sum would come from your RRSPs. If they accept, you would cash in your RRSPs, pay the taxes owing, and give them the rest. Since you have no other assets, this would probably be acceptable to them.
You are currently dealing with a collection agency; once the proposal is filed the deal goes back to the original bank, and in most cases they will accept this arrangement. Don’t delay; reduce your stress level by contacting a licensed trustee today.