Dangers of setting up a Payment Plan

If you set up a payment plan, a creditor will often want you to authorize direct payments from your bank account.  Talk to your bank to make sure that once you give that authority you can stop the auto deductions. We have seen many people get into deeper trouble when a settled debt keeps deducting from the bank and then overdraws an account.  It is also dangerous because you are giving that bank account information to the creditor.

Unless you have something in writing from them preventing it, that creditor may issue an Oregon Bank Garnishment and then take all you money.  The better option is to set up a payment plan that requires you to send a payment to the creditor. Then, do NOT send them a personal check or you just gave them your banking information. Instead, buy a Postal Money Order or one from the local store and send that as your payment.  This way it cannot be traced back to your bank. BUT, make sure to write your name and the case number on the front of the money order and take a picture or copy of it. Keep that photo or copy in case there is ever a dispute about whether you made the payment.