Are Debt Collectors Allowed To Refuse Your Payment Plan?

Last Updated: Nov 20, 2022

  • Requesting a payment plan agreement with a creditor can be denied!
  • A Payment Plan is one of several available solutions when consolidating debt.
  • Call us today for your FREE case review!

Debt collectors aren't imposed by laws  to accept a payment plan to accommodate your budget on overdue accounts. Debt collectors want to earn a profit on your outstanding debt. To guarantee their security, they might charge high monthly fees, and if you fail to meet your obligations, debt collectors are within their rights to initiate a lawsuit against you for the debt.

What Can I Do If The Payment Plan Is Refused?

If you are trying to consolidate your debt and consider requesting a payment plan with a creditor. The debt collector is free to refuse the requested payment plan, but other options are still available. These include:

  • Negotiating a settlement - You can attempt negotiating a settlement amount, which would need to be an amount you could afford to pay upfront in full. The downside is your report will indicate the debt was settled instead of being fully paid, which will impact your credit score.
  • Verifying the debt - Debt records are not always accurate. It is important you request verification of the debt, If it cannot be verified you are allowed to dispute the debt entirely.
  • Disputing the debt – You can send evidential proof in the form of a dispute to the credit bureau, with the objective of removing the claim, but this might be time consuming, and difficult. Credit repair companies (like Credit Sage) exist to dispute these issues for you!

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Bottom line

Debt Collectors are there to do their jobs. They can charge high monthly fees, and if you cannot negotiate a deal, you may face even more debt. If you want to dispute a debt claim, it is easier, and more cost effective to work with a company like Credit Sage. Our aim is to help you build the strongest case possible when disputing inaccurate collections.

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