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Question for the Money Doctors

Question submitted on Jul 7, 2011.

Question

Hello,

Can a collection agency and a credit card company sue me for a credit card debt? If I use a debt consolidation company to pay all the collectors each month.

Answer

Generally a debt consolidation company will make arrangements with the credit card company for payment options.  If they reach an agreement, the credit card company should suspend any further collection efforts.  It appears someone in the chain of command forgot to notify each other of the arrangement. 

I would call the debt consolidation company first to determine if arrangements have been made.  If arrangments have been made, the debt consolidation company should notify the credit card company who would in turn notify the collection company.


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