Paying off a contract

His obligation under the contract was to work for X period of time or pay a LUMP SUM of Y.

That was his obligation under the contract.

Their offer of 200/week is an accommodation to him.

His actual obligation is to either work as agreed or pull out his little checkbook and pay the amount stated in the contract.

 

Untrue. Once it's in the hands of a collector you can negotiate your payments. As long as he pays them something, they cannot report him as not paying.

Now, if it's the original lender, lets say a bank. I get a loan from them and the terms are to pay $300 /month. I cannot just decide to send them $50 and they have to take it.

There are huge differences in what the original lender can do and what a collection agency can do. You should do some research.


Ed

 

The third-party collector has no duty to negotiate a debt or the payments. Cite the law that says otherwise.

They have the same remedies as the original creditor.

 

I won't argue with that. In my opinion he should work through the contract if he cannot pay the full amount when he breaks it. I'm not arguing that.

I am, however, stating what his rights are if he does not agree to pay the full amount or the 200/week they are asking for. Nothing more.


Ed

 

$200 a week is rediculous. Send them a reasonable amount until it is paid off IN FULL. What does the contract say that you signed? There is your answer.

 

The standard contract says he has to work for a certain length of time or he owes the total amount IN FULL immediately (not payments).

Since he obviously can't pay in full, he needs to man up and complete his contract.

 

Double post

 

Would you hire a driver that is half way through his 2 year contract? Or would you have trust issues? I really don't see it being an issue. If Wooly transportation only requires 1 year experience and he meets all your qualifications who cares if he left left swift before his 2 year contract. How can you blame the man.? He can probably double his income at Wooly and pay the remaining school balance and still be way ahead.

 

No one is saying they can force him to do anything. However, you do make some good points.

Read his quote; He said "driver advocate." What kind of profession is that. That is a know nothing company representative. This guy needs a licensed "legal advocate", a lawyer, to advise him on contract terms.

I guarantee you all these trucking training companies had their contracts drawn up and reviewed by lawyers. The worst lawyer in the world is not going to provide a contract without stipulation of the terms when the driver goes into default.

Those terms would likely allow the trucking company to not only collect the sum owed but also a 33% collection fee. The would also likely indemnify them with the legal right to retribution on a credit report and still allow them sell the amount with collection fee to a third party collection agency. This is trucking, we all have lawyers.

 

I stand corrected on part one. I never meant to relay that they HAVE to negotiate the payments or the total debt. That was my fault for not being clear. I state again, I did not make that point clearly. When I re-read what I said it did seem as if I was saying they HAVE to do that. That is incorrect. I'll eat crow for not being more precise.

But they will. On both accounts.

As for part 2, no they do not have the same rights as the original lender.

https://www.debt.org/credit/your-consumer-rights/fair-debt-collection-practices-act/

and

https://www.debt.org/credit/collection-agencies/debt-collectors/

For simplicity I'll just paste the paragraph that states the point:

" While the original creditors are not covered by the provisions of the act, all third-party bill collectors and lawyers who are regularly engaged in the collection of debts are covered. In addition, many states have statutes that regulate the practices of bill collection agencies, with some requiring them to be licensed, registered or bonded. "


Ed