Legal Question in Consumer Law in Georgia

Contract

If a consumer makes payments on a debt (though it is not the full payment originally agreed upon because of debtor's loss of employment) and the creditor accepts each payment for several months, can the creditor sue the debtor for full payment after continually accepting these payments? Is there a good faith law regarding debtor's efforts in making payments on the debt owing? Is a creditor liable if it does not show good faith towards the debtor by filing a lawsuit? Does the creditor's acceptance of debtor's payment constitute an agreement between debtor and creditor? Does any law apply in the above situation?


Asked on 5/31/05, 11:41 am

1 Answer from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Re: Contract

Most loan agreements specifically address this, and as a general rule, they can sue you even if they accept reduced payments. Thuis, if you make a reduced payment arrangement, you need to make that in writing before making any of the payments. Assume that if a creditor refuses to do it in writing that they plan to sue you anyway. Otherwise you may make the payments and get sued.

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Answered on 5/31/05, 1:30 pm


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