Can a creditor send me to collections if I am making a good faith payment?

A retail store contacted me regarding past due payments dating back four months since I lost my job. I have been making good faith payments like $10 every 2 weeks that’s all I can do right now…Can they do this?

A: Yes, a creditor can send you to collections and make collection calls on your debt even if you are making good faith payments.

The good faith payments to the creditor may show the creditor that you have the intention of paying off your debt but the good faith payments by no means indicate that you are current or shouldn’t be on their list of collection calls. You could talk to the creditor and see if this is an acceptable scheduled payment form and if they would stop harassing you with calls. However, they are within their rights. If you have this creditor and other creditors that you can’t keep up with, you may want to talk to an experienced bankruptcy or debt settlement attorney and find out what options are available to you to alleviate your debt.

I hope that you found this answer helpful.

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Re-Published from AVVO Legal Questions and Answers.