Question by H is for Hector: Will American Express Sue me over 00 if I’ve Entered Into a Debt Management Program?
For various reasons, I fell behind on my debts. I decided a debt management program was the best option for me and enrolled in one. Now I’m getting calls from some guy at a law office (I don’t think he’s actually a lawyer) saying they don’t work with debt management companies and that he’ll “start the paperwork to sue me and WILL garnish my wages” if I don’t make payments through him instead. I called my debt management company and they said American Express accepts proposals through them all the time, and the guy is just using scare tactics. At one point he even said to me “So, your saying you aren’t willing to pay this debt?” and I said “That’s not what i’m saying at all”. Will they actually sue me over $ 1300 when i’m making a clear effort to pay the money owed through my debt management program? And if so, would a judge actually garnish my wages if I could prove I was trying to pay the debt through the program?
I would REALLY appreciate any help anyone can give.
Just to clairfy, this is a debt management program, NOT a debt settlement or negotiation company. This company works with me to figure out how much I can afford to pay each creditor twice a month and pays them – in the end I pay the entire balance I owe.
I’m in Canada and I’m using Debt Managers, they’re one of the largest credit counselling agencies in Canada.
Best answer:
Answer by SlimMick
Which debt management program are you using? If it’s not CCCS, then contact your local Red Cross for a referral to the local Consumer Credit Counseling Services (CCCS) in your area. They can negotiate much lower payments and interest rates. They DO NOT negotiate settlements.
Most creditors participate in the CCCS debt management program as far as I know.
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He is just trying ot frighten you. Tell him that you are attempting to pay your bills through a debt consilidation and that your only other alternative is to file a Chapter 7. He will back off and appreciate that you are attempting to pay.
A lot of debt settlement companies are scams and Amex will probably sue you for using them. You would probably be better settling with Amex or their law firm.
Your problem may be that the AmEx debt has been sold to a collection agency. Has your debt management program contacted AmEx and set up payment arrangements?
If you are stuck with dealing with the collection agency, they won’t want to accept small payments over several years. They could very well sue you and with the judgment garnish your wages.
Hopefully, AmEx still owns the debt and your debt management program can work out a plan.
I am sure he is trying to scare you to make you pay your debt. If they are starting the paperwork to sue you and delivery summons to your house. If so, you might want to settle to avoid go to the court. I am sure there is nothing to worry about it. Let debt management program handle with law firm office to solve the problem. Good Luck!
The best thing is to read up on credit card debt laws and do a little first hand research.