Legal Question in Credit and Debt Law in Michigan
Attempt to collect a debt letter from laywer
We have a credit card account that we pay each month, but we don't pay the minimum amount due. We experienced major financial hardship a few years ago. In 2005, we contacted the credit card company twice and asked if we could get the late fees and over the credit limit fees dropped and make monthly payments, and we asked that they contact us in writing. They never responded. We also asked them to quit calling my husband's work place as the employer did not want such calls which they did. Now we have received a collection letter from a lawyer. The credit card company said we have to deal with the attorney. They said we issued a cease and desist when asking them to quit calling place of employment. We never even heard of cease and desist so how could we have done this? We have paid over $1,400 in payments ranging from $50 to $100 monthly over the last two years, but they have charged us over $3,800 in late fees, etc. What does this letter mean? Is it still possible to negotiate after receiving this letter? We have no idea what to do, and I'm a nervous wreck at the thought of getting sued. Help!
1 Answer from Attorneys
Re: Attempt to collect a debt letter from laywer
Credit card companies and collection agents are notorious for aggressively collecting debts especially now that the economy has gotten so bad. When you told them to stop calling your husband's place of employment, they had to cease and desist calling him there by federal law (Fair Debt Collection Practices Act). That did not prevent them from calling you at home.
You may just be better off talking to their attorney as they tend not to be as unapproachable as their clients are. Set up a payment plan with their lawyer that you can afford. Also, analyze your debt situation. If you have other debts that you are having difficulty paying, you may want to consider restructuring your debt in a Chapter 13 action or eliminating your debt in a Chaoter 7 action. Please let me know if you need to further discuss your options.
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