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A collection agency demands a $50 minimum monthly payment . MUST I meet their demand or, can I pay only what I can afford, $30?

Walnut, IA |

I called the debtee and they said it is out of their hands now, I must deal with the collection agency. I called the collection agency and offered to set up an automatic monthly payment schedule of $30. They said they would only accept a minimum monthly payment of $50.
I am on SSD and live check to check. I simply cannot cut my budget any closer to the bone than it is now. Please help.

Attorney Answers 3


  1. Before you agree to make any payments with this collection agency, I recommend speaking with a Consumer Protection attorney that is licensed in IA. Odds are when you are dealing with a third-party debt collector they will probably violate the FDCPA


  2. Mr. Loker's advice is sound. In the meantime, it is only fair for you to know that the collection agency is playing a weak hand. If your income is only Social Security and you have no non-exempt assets, you may well be collection-proof. As a result, the collection agency's only means to obtain more than you have offered is to file suit and obtain a judgment. This costs money and, if you are indeed collection-proof, they will be left receiving only what you volunteer to pay. Put another way, if you are collection proof they can't make you pay the first dollar, much less the 50th. To determine whether you are collection-proof, a brief consultation with a consumer-rights or bankruptcy attorney should meet your needs.

    Best wishes for an outcome you can accept, and please remember to designate a best answer..

    This answer is offered as a public service for general information only and may not be relied upon as legal advice.


  3. So what is this collection agency able to do if you don't pay? In most instances, their only option would be to sue you. And if they did sue you, what do you have that they can take? Unless you have assets that are not protected under the laws of your state, this collector won't be able to get anything, as your SSD benefits are protected by federal laws. I am posting a link to a description of exemptions available in all 50 states for you to review to see what is protected in your state. Hope this perspective helps!

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