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Some people believe if they make payment on bills placed for collection they will avoid legal debt collection. Further, the payor believes that their decision to pay amounts at their discretion prevents the creditor from moving forward in the collection process and going “legal.”

Does paying down a debt mean you get to enjoy “safe harbor” from a creditor’s collection efforts? The answer is mostly no. Creditors and their agents do not have to accept installment payments toward a debt.

The creditor (or their agent) and the debtor or the party paying on their behalf must agree to the terms of the payout and or settlement of the debt. A delinquent client can not merely begin sending installment payments to a creditor and claim to have a binding agreement with the creditor to resolve the debt. As with any agreement, there must be a “ meeting of the minds” in order for the agreement to be binding. The parties must agree on the terms, which ideally should be in writing.

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Whether you are looking for assistance with collection efforts or want to make sure your current vendor is in compliance, you should be familiar with the laws that govern New York debt collection. This way you can be sure your agency or attorney is in compliance.

It should be noted that most news articles about debt collection involve rogue collectors or firms that either harassed consumers or failed to give the required notice of a debt. Other complaints are linked to the lack of or failure to comply with licensing, the theft of monies collected for the benefit of creditors by the collection vendor, and more.

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After improving the value of real estate and not getting paid, you filed a mechanics lien. Because you believed you were entitled to more, you filed the exaggerated mechanics lien for more than owed to you under the contract.

Due to this additional amount, the lien is now “exaggerated.” According to New York Lien Law Section 9, your mechanics lien should represent the unpaid amount of labor or materials. Therefore, exaggerated liens harm the recovery of your New York debt collection case.

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You agreed to settle and now, before signing the paperwork, have second thoughts because you are not happy about the terms of the settlement. Can you change your mind about settling your New York debt collection case?

During a legal case, all parties may agree the case should be settled. If the parties settle on an amount one must pay the other, all claims and counterclaims get discontinued and general releases provided pending the clearance of the payment(s).

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