Can a Debt Collector Refuse a Partial Payment?

Debt collectors are not obligated to accept partial payments, according to BCSAlliance.com. They have the right to refuse partial payments and generally demand a lump sum payment. However, some debt collectors might be open to arrangements that include partial payments.

Partial-Payment Refusal

• It is in your best interest to continue to send payments even if the debt collection agency has refused partial payments. If the agency sues you, there is more of a chance that a judge will find against it if you have been trying to pay off the debt.

Arranging Partial Payments

• If you arrange partial payments with a debt collector, make sure to get the agreement in writing, BCSAlliance.com advises. The written agreement needs to include the terms and conditions of the contract, and it should be dated and signed by both you and the collection agency.

Partial-Payment Agreements

• Many debt collectors agree to partial payments made on a regular schedule, according to the California attorney general's office. If you have a large debt that you cannot afford to pay in full, write up a partial-payment schedule that includes a payment amount that you can afford.