From CBS News · Angelica Leicht · · 3m
Partial payments won't stop debt collectors calling
Sending money to a debt collector doesn't automatically halt collection calls or change how they pursue you.
In brief
Sending money to a debt collector doesn't automatically halt collection calls or change how they pursue you. Making a partial payment on a debt in collections generally won't stop collection calls unless you negotiate a formal agreement with the collector. Originally reported by CBS News.
Why people consider partial payments
With high inflation, elevated interest rates and increasing consumer goods costs, many Americans are falling behind on debt payments. Collection calls become regular disruptions, prompting borrowers to seek relief.
The partial payment misconception
Borrowers often hope that sending money to a debt collector will slow or stop collection calls. But making a payment and changing how a debt collector pursues the remaining balance aren't necessarily the same thing.
What a partial payment actually does
Simply making a partial payment on a credit card or other debt won't automatically stop a debt collector from calling. Unless you've paid off the debt or entered into an agreement, the remaining balance can generally still be pursued.
The five thousand dollar example
If you owe five thousand dollars on an account in collections and send the collector five hundred dollars without negotiating other terms, that payment reduces what you owe but doesn't create a new payment plan or suspend collection efforts.
Federal limits on collection calls
A debt collector is presumed to violate federal law if it places more than seven calls within seven consecutive days about a particular debt or calls within seven days after having a telephone conversation with you about that debt.
Your right to stop contact
You have the right to tell a debt collector to stop contacting you. If you send a written request instructing the debt collector to cease communications, they generally must comply, aside from limited communications such as confirming that contact will stop.
Stopping calls isn't stopping collection
A cease-communication request doesn't erase the debt or prevent other collection measures, including a lawsuit or negative credit reporting when legally permitted. Stopping the calls and stopping the collection process are two different things.
The statute of limitations risk
Depending on state law, making a payment or acknowledging that you owe an old debt can restart the statute of limitations for a collection lawsuit. The rules vary by state, so determine the age and legal status of an old debt before sending money.
Better alternatives to partial payments
If you can't pay the full balance, negotiate directly with the debt collector to establish a payment plan or settlement for less than the full amount. Get the terms in writing before paying to clarify expectations and what happens once you've fulfilled the agreement.
What matters most
Making a partial payment on a debt in collections generally won't stop collection calls unless you negotiate a formal agreement with the collector.
