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Under WA state debt collection laws can a creditor refuse to accept payment plan if the account is in litigation

Asked over 3 years ago - Camas, WA

I am trying to find out what rights I have. Due to my wife being unemployed for a large amount of time this year I fell seriously behind on my capital one credit card. I since have been making monthly payments that haven't been enough to catch me completely up. She was laid off again in august and had set up arrangements to make a payment in October because I was unable to pay in September. Upon calling to make the actual payment my wife (who is not on my account, but frequently submitted payments) was informed that my account had been sent to another agency and I could no longer make payments. They gave my wife all of the information in lieu of requesting to speak to me. They informed her that my account was up for litigation. The agent was quite rude to her and made a few threats (and going so far as to ask if she had a rich grandparent she could borrow the money from). I am trying to make good on my debt (and offering far more than they would garnish if it got that far, since my wife is now back to work). I went so far as to call and speak with Capital One's collection manager who took payment arrangements (even after being told we couldn't make a payment). The first of three payments was to be automatically withdrawn from our account on the 20th. My wife called them this morning as they haven't withdrawn the funds and while they acknowledge having set up an arrangement with her, they refused the payment and forwarded her to the agency. She spoke with a man who told her we needed to come up with the payment in full or nothing because it was pending lawsuit. We are doing everything in our power to make good on the money we owe. We aren't trying to claim bankruptcy as a way out or anything like that. What rights do I have? What steps do I need to take? I am unable to set up a payment online as my account is frozen. Should I just set the arranged monies aside and wait to be served or should I hire a lawyer. I don't want it to go to court but don't know what else to do when they won't accept the money...

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Attorney answers (4)

David Paul Lovik

Reputation Level 6

Answered about 3 years ago. Business Attorney in Seattle, WA.

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Look at your credit card agreement. Capitol One is bound under the same terms. Once you have defaulted and the account is placed into litigation (you have been served with a summons and complaint) Capitol One is under no obligation to accept payment plans. Typically credit card companies are more than eager to work out arrangements, even if it means accepting a fraction of what is owed to them. I recommend consulting with a credit repair company and an attorney once litigation is commenced.

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Gregory Charles Dow

Reputation Level 8

Answered about 3 years ago. Debt Collection Attorney in Richland, WA.

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Yes. In Washington, a creditor can refuse to accept a payment plan proposal. You are obliged to make the payment required under your written agreement, whatever that may be. Capital One will frequently take a discount if you are able to put that together...offer one third.

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Gregory J. Jalbert

Reputation Level 13

Answered over 3 years ago. Chapter 7 Bankruptcy Attorney in Seattle, WA.

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Your situation is not too uncommon. People often end up filing a bankruptcy proceeding not because they want to but because they are forced to. I suggest you schedule an appt with a bankruptcy attorney to review your situation and determine the best course of action based upon the amount of the obligation to Capital and the other debts you have. On of the advantages of a chapter 13 is that you make payments over time to your creditors and they have to accept the payments. They no longer are in charge, the bankruptcy court is. I would make the appointment now rather than wait until you are sued as it is better to know sooner than later the course of action you will take.

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Linda Kaye Frieder

Reputation Level 7

Answered almost 3 years ago. Debt Collection Attorney in Irvine, CA.

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I am a California attorney and not a Washington attorney. Seeking the advice of WA attorney is what you should do. Based on my experience with Capital One, being in litigation is not necessarily a bad thing. Capital One's attorneys or whoever they hired to go after this debt, want money not a judgment. If a case is file and an attorney assigned, you should contact that attorney directly as he will have the power with in reason (with the blessing of the creditor) to settle your debt after the case has been filed. When you contact the lawyer, ask that the case be dismissed as part of the settlment with predjudice.

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