I am paying off an old debt via a collection agency. Do you think it is wise to pay using my debit card on their website or just send them a money order or personal check through the mail? I have to make 3 payments to them. Any suggestions will be appreciated.
By Onesummer
Add your voice! Click below to answer. ThriftyFun is powered by your wisdom!
I'd use a personal check and mail it. Then you have your reciept/check if there is ever a question as to whether they got it. I'm not a fan of debit cards.
Checks are OK, but debit cards aren't a problem, either. You have the proof of your bank statement and/or the print-out you make from your bank's web site as proof. Plus, you don't have to pay for a postage stamp, or risk the check or MO getting lost in the mail.
Personally, I pay all my bills with a debit card, and have never had a problem. :-)
I'd give them money order [keep receipt part] from us post office. Unquestioned money order and they have o access to your personal account info.
I vote for money order, because you won't be giving them any of your personal information like checking account number or credit/debit card numbers. A money order doesn't provide proof they received it, but if you are worried about that, you can always send the payments certified mail.
Use a check or money order. Don't use your bank card. Some places a debit card is fine but I wouldn't want to give a collection agency access to my bank account.
Just an FYI, some collection agencies charge a (processing) fee for collecting each payment. It could be $5-$15 (times 3 for you).
I would NOT use anything connected to my bank account. Once you authorize one use on the card, they can take it out without asking. I know, you can dispute it, but you don't usually win...believe me. Also, if they know your bank and account, they can withdraw without your permission if they show the bank that you owe them $ (again, it shouldn't happen, but it has to us a few times) (bad business debt). Really, go with the cashiers check and mail it certified. That's the proof you need.
See what it costs to ETF electronic funds transfer from your bank to them? Or even see if you can use PayPal. Then since it is only 3 payments, use a money order. That is my suggestion. Although, I do use my debit card for utilities and such, You may be better off NOT to.
I would us certified funds and keep receipt. I would not give out bank information. Keep the receipt and send certified. Attach to bill for records.
I would not send a check!
Let's not forget that a check has your bank routing number, bank account number, as well as your name and address. On some web sites that is all that is needed to create a direct debit from your account.
Cashier's check or money order is the way to go. If it is a low enough amount (i.e. less than $500 or $1,000 depending on where you get it) a money order will do. Make sure it is one of those places like Walmart that has a website for you to check online if it cleared. Large amounts will require a cashier's check. Ask before you buy it what is the bank's method for you to be able to track it being cashed. The cashier's check is probably free if you get it at your own bank, but I would pay the fee to buy one at a bank where I don't have an account. No point letting them know where you bank. Unfortunately predatory collectors who violate credit collection rights make it necessary to be evasive.
The best way to pay a collection agecy is to get a prepaid debit card with the agreed amount so if they try to take out more they can't and won't be tied to any checking account.
Add your voice! Click below to answer. ThriftyFun is powered by your wisdom!
