Dear Melissa,

I had fallen seriously behind on my credit card payment for about 6 months. Finally, I was able to do a remodification with my mortgage company (I fell behind because for 4 months I was the only one working part time).  Here is the situation: I was able to get my mortgage payment down this month due to remodification. It lowered it about  $350.00 a month.  So all my credit cards now are being sent to a collection agency. I had several call me at work and demand full payment. They are not trying to work out a payment plan (except for one who has).  Since I got my mortgage lowered I used some of the money to pay on my credit cards, and every month I send them something. My question is, if I am sending them a payment do I still have to deal with the collection agency (one person told me at a collection agency it does not matter if the credit card company cashes the check but once it goes to the collection agency, I am obligated to them and not my credit card company.  One person really got under my skin, she called me on Feb 19, 2009 and told me I better consult with an attorney and that she has a letter in her office that I signed in receipt of certified mail (which i did not sign anything for her company) and by the 25th I best have the full $5,000.00 when she calls again.  Is there anything that I can do such as send them a letter asking them to cease from contacting me and continue paying the credit card company?

Jessica N.

Dear Jessica,

Yes, you absolutely have the right to invoke a cease communication with the collection agency.  But, I must inform you, this does not exempt you from owing the debt or the collection agency taking action against you, it merely means that they cannot contact you via verbal or written communication.

Now the collection agency that told you that is correct.  Once an account is placed with a collection agency, per the contract that the collection agency and original creditor sign, no matter with one receives the check; both the collection agency and creditor are owed their share of what is paid.  A lot of people will pay the original creditor directly, thinking that the collection agency will not receive any money, but this is not true.

Now, what I do advise is to pay the collection agency directly.  The reason for this is so that your account is properly credited, and in the most timely fashion.  If the money is sent directly to the credit card company, their policy may be to inform the collection agency up to 30 days later.  The collection agency will then not know what payments have actually been made.  In my opinion, the best thing to do would be to invoke a cease communication with the collection agency with regard to them contacting you by phone.  Tell them in a letter that you intend to make good on the debt and will send in monthly payments.  Advise them that they can send you statements to reflect your balance and what is owed each month, but they are not contact you verbally again.  At least then, they can no longer contact you at work and make empty threats!

Do YOU have a question for Melissa? Email her at melissa@dovcocs.com.

Melissa Douros
Dovco Collection Solutions, Inc.

As the owner of Dovco Collection Solutions, Inc., Melissa Douros uses her eight years of being a collections specialists to offer advice and answer questions pertaining to debt collection.  With running her own successful collection agency, she seeks to keep debt collectors accountable for their actions and in line with the law.