Can the creditor refuse to accept credit card payments
Problem:
We are struggling to make credit card payments since last year. Earlier, we used to pay the credit card debts on time. However, our financial situation became bad after my husband lost his job. My mother-in-law became ill in the mean time. So, we had to spend a substantial amount for her treatment. My husband didn’t have any job for nearly 14 months. This is why it be came very difficult for us to make the credit card payments. We were able to make the minimum payments on most of the credit cards, but we could not make any payment on the Capital One card.
My husband has secured a job last month. He wants to make payments on the Capital One card. My husband called the company and told that he wants to start making payments again. He offered to pay $200 this month. However, the company official informed that they don’t accept such a less amount. Does the creditor have the right to do this? They will take a payment of around $650. My husband would have paid the amount if he could. What can we do now?
Solution:
I am glad to know that your husband has got a job. I hope your mother-in-law is well now. The fact that you have been able to make the minimum monthly payments on most of the credit cards in the midst of the financial crisis is commendable. Not many people are able to do it.
It is clear from your query that you are facing problem with the Capital credit card. Sometimes, it does get difficult to arrange an affordable repayment plan with the creditors. They refuse to accept a payment which consumers can afford to make. Your case is a perfect example of this.
I would advise you to read through your credit card agreement and find out the minimum monthly payment amount. If you see that the minimum monthly payment amount is more than $200, then the credit card company can refuse to accept the payment. There is nothing illegal about it.
Since you or your husband has not been able to negotiate with the Capital One successfully, so it is better to enroll into a debt relief program. You can approach a debt relief company offering credit card bill consolidation program to the consumers. Once you sign a contract with the company, they will contact your creditor and start negotiating for an affordable repayment plan. Sometimes, the creditors agree to lower the interest rates or arrange a payment plan through a debt relief company. This is mainly because the creditors know that the debt consultants have analyzed your financial situation thoroughly. They believe that the debt consultants are offering a payment amount which you can really pay.
However, if you really want to take advantage of credit card bill consolidation, then you’ll have to increase your cash-flow. It will take 3-4 years to pay off the debt through credit card bill consolidation. So, you need to have sufficient amount to carry on making payments for that period of time.
Finally, if the credit card company refuses to work with the debt relief company and makes a decision to take legal steps against you, then it will be better to consult an attorney. The attorney will take care of the legal issues and try to work out a payment plan with the credit card company.
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