[blindlaw] client paying a collection agency

[Mike Gilmore]

I have a client who defaulted on a private student loan a few years ago. The loan went into collection. Last year, my client was able to obtain employmetn and began making $200 monthly payments. When asked if payment could be submitted via check, the agency said no. Their reason was that because of the size of the debt, they could only secure payment to their client either by deducting the $200 from my client's bank account or writing a check for the monthly amount and sending it to client's bank. Either way an eight dollar fee is assessed in addition to the monthly payment. (They did offer to take a check for the entire ammount of the debt which my client doesn't have. I should also add that the account is a joint account that has client and client's spouse on it.)

Each month before the payment is deducted from my client's account, a letter is sent by the agency which says "if you don't have the funds in your account, call us and let us know and we'll arrange an alternate payment method for that month." It seems to me that on one hand, the letter could be a form letter that they send out to all debtors regardless of the amount owed. On the other hand, they could be lying about the only way to receive payment for the amount.

What do all of you think? Need advice on how to get the agency to accept checks. My client is afraid that they'll go to court and attach his wages if he disallows the monthly deductions.

Thanks.

Mike