Settling After Agreeing to Monthly payment

[hcorreia1]

I am just curious if anyone has had any experience on settling with CA after agreeing to a monthly payment

[jwmc1]

Depends...who is the creditor?

[junker]

you need to be really careful here, with giving them your personal banking info...if you decide to do it......i once made a agreement with a creditor...actually a judgment lien holder....just so he wouldnt domesticate a judgment in the state i was living in at the time...FLORIDA... and attach a lien to the property...... i needed to stall a month of time as i had a house on the market and in escrow...being the dummie i am......i gave him checking info for SPECIFICALLY one month payment...sure jenough the next month he took another payment out of my bank....i suspected he would do something like this and withdrew all money in advance...needless to say bank paid it and charged me with payment and nsf charges.... long story short.... it worked...i sold the house... without the lien attached.....told bank what to do with payment and moved to california...IF you do decide for whatever reason to do this...get a prepaid debit card to pay it or pay with money orders......NEVER give personal banking info to creditors........AND you HAVE TO INSIST ON THOSE TERMS...AS they will tell you they HAVE to have your bank info......

[jwmc1]

tell them you will send a check or nothing at all...I would love to see one of these a-holes come to court and say they sued me because I only agreed to make a payment. What a joke, they just want your bank information. Remember, any information they get from you will be "used for that purpose."

[junker]

tell them you will send a check or nothing at all...I would love to see one of these a-holes come to court and say they sued me because I only agreed to make a payment. What a joke, they just want your bank information. Remember, any information they get from you will be "used for that purpose."

but in my case they took checking info over phone..and made a e check withdrawal....if you send a check i think they can transfer it to e check and do the same.....i had a big hassle with the bank..telling them i only agreed to ONE payment.....they basically told me ANYTIME you agree to give a creditor banking info.....it is ASSUMED to be a montly plan....and they would not reverse it.....they told me to talk to creditor to get it reversed......i wouldnt even trust them with a mailed check anymore.......

[shark66]

..telling them i only agreed to ONE payment.....they basically told me ANYTIME you agree to give a creditor banking info.....it is ASSUMED to be a montly plan....and they would not reverse it.....they told me to talk to creditor to get it reversed......i wouldnt even trust them with a mailed check anymore.......

There's something wrong with that picture - not saying that it hasn't happened - but I've paid by check to a creditor holding a judgement against my wife a couple of times and then stopped altogether. They've never attempted to collect any monies afterwards, although the account and routing numbers were there, as they are on any check...

In my opinion, it was the bank in your case that needed some serious talking to, perhaps by your attorney...

[jwmc1]

If you call your bank and tell them never to pay on an overdraft they will code your account to never pay those overdrafts. Tell the branch manager or the customer service line.

[jwmc1]

but in my case they took checking info over phone..and made a e check withdrawal....if you send a check i think they can transfer it to e check and do the same.....i had a big hassle with the bank..telling them i only agreed to ONE payment.....they basically told me ANYTIME you agree to give a creditor banking info.....it is ASSUMED to be a montly plan....and they would not reverse it.....they told me to talk to creditor to get it reversed......i wouldnt even trust them with a mailed check anymore.......

Send them a letter with the check explicitly telling them they are not to construe this payment as any type of ongoing payment arrangement and that they are not authorized to debit your account. On the other hand, what are your plans? Are you planning to file for BK? If so, why would you make any payments? Everytime you agree to make a payment or set up an arrangement you make them think you have money and your settlement may go up or not exist at al.

[catleg]

These transactions are processed through ACH and are governed by their rules and the consumer has rights to dispute with their bank through Regulation E.

If coded 'PPD' then the creditor must have a written authorization (could be electronic/email). Those can be one-time or recurring.

If coded 'TEL' then the creditor can have verbal authorization but it cannot be the basis for a recurring payment.

I found a website for some payments processor which describes the rules and how they handle them for their clients. Worth a look.

http://www.paysimple.com/support/quick-guide/how-to-authorize-ach-transactions.pdf

The thing to realize is that you have rights with your bank to dispute these transactions, you don't necessarily have to beg a CA for you money back.

[junker]

On the other hand, what are your plans? Are you planning to file for BK? If so, why would you make any payments?

as i explained earlier....i was just trying to stall for some time..so i could sell the house in florida. i made a agreement with them to start paying only to stall a month so i could finish closing on the house....so they wouldnt bring the lien to florida.as they had threatened....as i said ....it worked...i paid them a 100 buck payment....but saved having a 5000 dollar lien on the house....this happened a couple of years ago...the bank was wachovia at the time....no i dont have the need to file bk....the bank basically told me when you give a creditor your info over the phone..there is nothing they will do..

[keptdigging]

One poster here described someone who needed to settle all their accounts rather than file. Her technique was to have a separate checking account. Personally I am just not comfortable with creditors being able to "find" my money. In the old days this is why I always paid with a credit card not a debit card... did not want anyone mainlining into my bank account. Naturally as I am here you can assume that THOSE days are over.

The safest account is the one they don't know about.