Canadian Debt Problem in the US

[pony1076 0]

I moved to the US just over a year ago. One of my credit cards is quite high and I had been making payments on it. Unfortunately the 1st few months after I arrived here they were just barely minimum, so it went into Collections. In February I missed a payment, my car broke down, so now they are demanding all of the money no exceptions. They are threatening me they will garanish my wages, which I am mortified about. But how can a Canadian company do this in the USA ? I have offered to send post dated cheques, they will hear nothing of that. I don't want my Employer involved in this or the embarassment.

Right now I am in the process of getting a bank loan. I am not sure if I will get it. Every day when I call the bank, they tell me to call the next day. I just want to prepare myself incase the bank loan falls through.

Can any one please help me ?

[sheeshkabelle 153]

The creditor would have to work through a collection agency that is licensed in the US and, to the extent that they wish to employ judicial remedies, would need to get their orders through a court in the US. They cannot enforce a Canadian judgment in the US unless they domesticate the judgment. Note that many banks are now international in their operations, so depending upon the bank and circumstances they may be able to garnish a US account through a Canadian office of the same banking institution.

[Udella&Wiz 325]

I agree with Sheesh above. What I am confused about is that you can negotiate with the collection agency and I thought they had to work with you if you tried to make restitution? Don't be scared by all their blustering. They have been known to say things which aren't true and are very threathening sounding. I think you can do any number of things including asking them what amount they want to settle. It can be lower then the amount....I'm not entirely positive about that but way back when I had an amount which went to collections when I was 23 or so and they took much less then the full amount to consider it paid off. I of course got a letter of proof from them indicating it was all done.

If you are willing to now make regular payments I thought they had to agree to it (and not harass you if you continue to make regular payments). I could be wrong so hopefully someone chimes in.

[SapphireDreams 71]

It sounds like they are trying to scare you, which is common.

This link has some good advice: http://financialhighway.com/dealing-with-collection-agencies-tips-on-handling-collection-agencies/

Make sure you are getting all of this from them in writing. You should also figure out what kind of legal action they are technically allowed to take. I might even see if you can consult with a lawyer to figure out if they even have the right or ability to take legal action on you before you use that potential bank loan to pay them. Are they a US credit collections agency, international or Canadian?

Usually when you go to a collection agency, they won't take payments anymore. The company you owe already wrote off your debt and sold it to the collection agency, who now basically keeps the money as profit. That is why they are so aggressive.

I find it hard to believe that they can garnish your wages - i think they would only be able to do that if it was court ordered. I would talk to a lawyer and find out what your rights are.