Question:
I recently received a copy of my credit report. On it was a
collection for $50 from XXX collection agency. On the last page of
the report was included their phone number. I called the number and
as soon as I gave them the account number they redirected me to
another phone number. They didn't tell me who it was, just that I
"need to call that number for further information". I called the
number and got an answering machine for XXX Law Firm. The next day a
guy from XXX Law Firm called my cell phone and left a message asking
me to call him.
When I called I was informed that he was handling the debt and that
the cost had jumped from the $50 reported on my credit report to $132.
He claimed that the extra $82 was for court costs incurred. I told
him I wanted to investigate the matter because the check number he
gave me couldn't possibly be mine as I always start my checks at 10000
and this was a four digit number.
I am not refuting that the check nor the debt is mine but I want to
investigate it. Now the guy calls my cell phone constantly. I know
my rights under the fair debt collections act but there are a few
things that aren't covered in the act or aren't clear to me.
1) Is there a limit on the charges they can add to the original debt?
It seems that %150 is a lot. I mean what stops them from adding $5000
to a $10 debt and claiming filing costs.
2) Can they add court costs without telling me that they are taking
legal action against me? As I said he told me that the extra $82 was
for court costs.
3) I saw that they must send me a bill within 5 days after the first
contact. But can they attempt to take legal action without first
sending me the bill?
4) Can one collection agency sell a debt to another collection agency
or a lawyer without attempting to contact me or send me a bill? I
don't understand how my debt got transferred from XXX collection
agency on my credit report to XXX Law firm.
It just seems to me like something fishy is going on here. I don't
want to pay this debt to some guy who isn't even with the company that
reported my debt to the credit agencies.
Also, XXX is not the real name of the collection agency or Law Firm; I
replaced them for privacy sake.
Any help would be greatly appreciated.
Answer:
I just referred someone else to this book I read awhile ago and it was a
tremendous help -- I think it can help you too. All the questions you have
listed do not matter....
Bottom line is this: If the debt is yours, you don't have to pay the
collection agency or xxx Law firm.... Contact the original debtor and offer
them a settlement. As per the book I am referring to, once the original debtor
can't collect the account, he sells it to a collection agency. Once the
original debtor sells it off and writes it off as a loss, anything you offer
them is considered a profit to them at that point. Say your bill is $200 --
maybe offer them $50 to settle in full - tell them thats all you can afford.
Also, as part of the agreement, they will take their claim off your credit
report because the debt has been settled.
Anyway, the book explains it in better detail -- please just check it out,
you'll be happy you did.... it's called "Stop It!" by Benjamin Dover -- yes,
thats really his name LOL. Have your library look it up..
