I have a 4 year old debt from a check cashing agency that was referred to a debt

  1. profile image47
    zaidsposted 7 years ago

    I have a 4 year old debt from a check cashing agency that was referred to a debt collection agency

      I have been getting calls from a collection agency regarding a 300 they want 465 and the debt I had was over 4 years ago with a payday loan in california, the collection agency  based in NY is now saying they will "pursue action", when i said i wasn't sure if i could pay so I let them get my info to do 4 payments to pay off the debt,the first payment didn't go through my debit card exp changed and i couldn't afford it anyway, and i have been dodging their phone calls again, anyway my question is can they use that against me, and will they take me to court?  How should i proceed?  Thanks.

  2. Petra Vlah profile image60
    Petra Vlahposted 7 years ago

    By law, all you have to do is make regular payments of minimum $5 a month. They will protest and scream bloody murder, but as long as you pay, they can't do nothing and can't report you to credit agency.
    Remember any loan is a promise to repay and it is based on 2 thing: 1) the willingness to pay and 2) the ability to pay.
    Show willingness ($5 a month), claim inability to pay more. DO NOT avoid their phone calls - negotiate and DO not back down.
    There is nothing they can do, BUT do not get intimidated. If they take you to court (which will never happen because they know the law) the judge will tell them to get lost.
    Collection agencies act on the premises that people DO NOT know the law and they can be intimidated. Do not let them