questions & answers

Question: I have been contacted by a collection agency for a debt owed. The amount owed is $226, they say they will only accept payment in full, or 2 payments of $114.33. My question is this, if I am willing to pay this, but can only make small weekly payments, are they required to accept them? What do I do if they refuse my payments that I am able to make.

Answer: The collection agency is under no obligation to accept smaller payments. They often do it for the convenience of the debtors. If they refuse your payments, they may call you more, make derogatory marks on your credit, sue you to obtain a judgment, and garnish your wages. However, for such a small amount it is unlikely that they will file a lawsuit. If interest is applicable, it will probably continue to accrue until the debt is paid.