Below are some questions and answers we've received from consumers. Due to the amount of traffic we are now receiving on this site, we can't reply to general questions from the public.

If you do decide to purchase the Stop Debt Collectors Cold eBook Kit, however, you will have unlimited lifetime access to our Member's Only section which includes an updated Questions and Answers section where John answers selected questions from our customers.

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Q: I recently purchased your Collectors Kit; thank you for this information. I have a major situation with a collection company that hasn't sent their offer letter yet to me as we both agreed. The debt collector does have my checking account number, bank information, and schedule of payments to be deducted each month until agreed amount has been satisfied. They keep delaying and pacifying me on when the agreement letter will come. What do I do from here?

A: This is one of the reasons why I emphasize trying to get agreements in writing before you pay or provide payment information. Once the collector has your information, you’ve lost your leverage. I’ve found that once they get all the information they want, collectors will often leave you with no written recourse as to what the agreement was.

You can just start paying according to the agreement and see what happens. But I would recommend you send a letter (certified) first that says "You have agreed to the following terms and if I do not hear back from you in writing I am going to presume that is what the agreement is". It is not good enough, but at this point it is probably the best you can do. Also follow my suggestions in the Collection Protection Kit for keeping good records and consider suing them if they lie or otherwise violate the law.

Q: My mother broke her wrist (in five places), had emergency surgery and was billed over $26,000 for the outpatient surgery. She is retired and lives on $600 a month and doesn’t have insurance (one year away from eligibility for Medi-Cal). She received calls from a healthcare services company demanding full payment, and it was only 2 ½ weeks after the surgery. We told the Hospital Patient Administration that my mother didn’t have any money and that I could only give her the $1,200 deposit that she asked for. That agreement was accepted.

I tried to negotiate with the the healthcare company callers and the best they would do is lower it to $12,000, but it had to be paid in full, no payment plans. I need some help writing a letter to the Chief of Staff of this hospital asking for his forgiveness on our request for the bill to be written off. My understanding from a State Fund employee is that this bill can be written off and that there is a fund of this sort at each hospital. My poor mother doesn’t own anything and has been very depressed during her recovery about the enormous bill. I am personally ($1,300) paying the orthopedic surgeon, because of her continued visits with him. He is a very good doctor and I wouldn’t want him to turn her away because of money. That doctor also worked out a payment plan with a cash paying discount. I know that we are going to hear from the bill collector on this, and I need to help my mother proactively so that she can get out of her depression.

A: Thanks for your email to Stop Debt Collectors Cold. We're so sorry to hear of all the difficulties you and your mother are going through! We do recommend you get the kit so you fully understand your rights when it comes to debt collectors. It comes with a 100% satisfaction guarantee so there's no risk to you.

We would suggest a couple of additional things:

1. You may want to hire a company to review the $26,000 bill to see if there are errors. A large number of medical bills contain errors (often in favor of the medical provider!). There are companies that will audit medical bills for you to find savings, and many of them only get paid based on how much they save you. A quick google search will turn up some leads.

2. You may want to talk with a bankruptcy attorney if it is going to be impossible for your mother to pay this bill (which it sounds like it may be). That may be a frightening prospect for her, but it may be necessary for her to be able to afford to live on her fixed income.

3. You may want to talk with the Patient Advocate Foundation about help negotiating the bill if bankruptcy is not an option for your mother. They can be found at www.patientadvocate.org. My understanding is their services are free.

Q: I would like to know if your protection kit covers problems when debt collectors place a freeze on bank accounts. Currently, my bank accounts are frozen, which leaves me with no money to pay bills, rent, or even groceries. I’m in a bind and would appreciate as much help as I can get.

A: The only freeze I know of is the situation where you live in a state that has garnishment laws. You need to get to a bankruptcy attorney right away. If this is a garnishment situation then the filing of a bankruptcy will stop the continuation of the garnishment. It is the quickest, cheapest way to address the problem. If the freeze is of some other kind then there would have to have been a law suit first or an administrative action from the IRS or some agency like that. Again, when you are being denied access to your bank funds then quick action is necessary and it has probably reached the stage where a bankruptcy is called for. Of course the freeze on your account could have been placed there by your bank, maybe because you have written some bad checks.

I hope this helps! Good luck with your situation. To find an attorney in your area, visit www.nacba.org.

Q: I am being sued by a law firm collecting a debt of a little less than 5,000 dollars that I owe a credit card company. I know I owe the money but haven’t been able to pay it. Do I need to hire an attorney to represent me in court? Is there any way I can make an agreement with them before the conference?

A: Since you don't dispute the validity of the debt, or the amount, it would probably be a waste of your money to hire an attorney unless you are going to pay someone to settle the matter. It sounds like you don't have the money to do that.

If there is a lawsuit, if you agree you owe the debt, and if you have no defenses related to why you have not paid it, then the credit card company will get a judgment against you for what you owe to it and for its attorney's fees. However, consider calling the credit card company's attorney before your court date to try to work something out. This has worked for other consumers in your same situation. However, you will probably be required to admit to the judgment and sign a document saying that you do.

Q: I am in default with some credit cards, one credit card sent my account to a collection agency that is a law firm. They called me at work (after I told them not to) and asked me if I am could show up tomorrow morning for some sort of court hearing, judgment or whatever they said. They are located in Atlanta, I'm in New York. So I asked "you mean I'm being sued"?

They said "Well, if you don't make a payment arrangement they will issue a judgment". So I eventually made a payment arrangement with them to pay $50 every month using my debit card. Otherwise I thought they would sue me. In fact, I only thought I could send $25.00 but stretched it to $50 to keep them quiet.

I have second thoughts about letting them use my debit card information and plus I was hoping to get a better deal with the original creditor in the future, now I'm stuck paying these unpleasant debt collectors. Did they violate the Fair Debt Collection law by saying this credit card company would send a judgment tomorrow if I don't make a payment today? How do I know they were telling the truth ? Can I still make a new arrangement with the original creditor? And what would be wrong with sending a money order out. Why does everything with these people have to be NOW, NOW, NOW ?

A: Debt collectors can be very aggressive and pressure consumers into paying debts they really can't afford. Legally, they aren’t allowed to make false statements or threaten to take action they don't intend to take. But that doesn’t mean it doesn’t happen. As I explain in my Collection Protection Kit, collectors generally cannot get a judgment against you unless they first take you to court and win – and you’ll usually get more than one day’s notice! I also explain it is never a good idea to make payment arrangements you can’t afford. At this point, it would make sense for you to talk with a consumer law attorney about possible recourse against this company.

Q: Does your eBook cover the issue of penalties and interest on credit
card accounts that are closed and in collections?

I have successfully taken care of two cards that were in collections and am slowly getting myself out of debt, without declaring bankruptcy, and neither of those were charging me continued interest and penalties once the accounts were in collections.

If you book does not cover this, where can I find information on this subject?

A: Once accounts are closed, penalties and interest may be charged as allowed by state law and by the contract. I do cover in my book how to negotiate a debt for less than the full amount, and that may be the strategy you will want to try to take.

I hope you'll find the ebook helpful. Congratulations on your success so far with your debts!

Q: In Jan I joined a dating service for 1000+ dollars (I forget the exact amount), then, within 24 hours cancelled my membership. I wrote the service a letter and never received a response from them. Today I got a letter from a debt collector asking for 1800+dollars.

I have studied a little law and am about to start law school and am under the impression that there must be some consideration for a contact to be valid. I do not see what consideration they put into this. So beyond my having cancelled the membership shouldn't this be an invalid contract? Since there was no action on their part.

A: It sounds like you have a question about whether the contract you signed with the dating service was valid. Legally binding contracts usually must include:

An offer: Specific unambiguous statement of what's being agreed to.

Consideration: An exchange of something that's of value to the parties. That could include money, goods, services, etc.

Acceptance: An agreement that there is a deal based on the offer and the consideration.

Buyer's remorse is usually not grounds for cancelling a contract unless there is a cooling off period or a refund policy. To find out whether that was the case, you may need to do some more digging and/or talk with a local consumer law attorney for advice. You should look carefully at the contract you signed to see if there was a cooling off period. You may also want to talk with your state attorney general's office or consumer protection office to find out whether there are any state laws that require a cooling off period for that type of purchase.

If the contract was valid, and the dating service won't budge, then you should use the advice I provide in my ebook to try to settle the debt, if that is feasible.