Debt Collection, Garnishment, Repossession

questions & answers

Question: I owe a credit union in Michigan $25,000 for Visa and $175,000 for second mortgage. They wrote the balances off 12/30/2010. I continued to make payments on the mortgage thru May-2012. I have not received any communications from the credit union since then. In June 2013 I received a letter from a collection agency that states that I owe $200,000 on the 2nd mortgage and $32,000 on the visa. What are my rights? What am I obligated to pay? Does Arizona have a law that creditors are not allowed to solicit more than what they paid for a debt? Your help would be greatly appreciated. SB

Answer: When making payments to creditor or collection agency, keep a record of all payments made. Also, please refer to the following article regarding debt collection (http://www.azlawhelp.org/articles_info.cfm?mc=4&sc=29&articleid=59).

QUESTIONS

  • I owe a credit union in Michigan $25,000 for Visa and $175,000 for second mortgage. They wrote the balances off 12/30/2010. I continued to make payments on the mortgage thru May-2012. I have not received any communications from the credit union since then. In June 2013 I received a letter from a collection agency that states that I owe $200,000 on the 2nd mortgage and $32,000 on the visa. What are my rights? What am I obligated to pay? Does Arizona have a law that creditors are not allowed to solicit more than what they paid for a debt? Your help would be greatly appreciated. SB

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