I think I'm being ripped off?

Hey does anyone know if it's legal for a collections agency to double the amount of a past due balance? I just found out that a relative didn't pay a cell phone bill I got for them in my name and the past due amount is 329.00 when I contacted the collection agency they told me the bill was 658.00. That sounds like a crock if you ask me and I refuse to pay that. Help me somebody.

no they are playing a game one you and the poster crazy jess said it correctly. lots of unreserved responses in here. This letter will force them to provide the reasoning behind this bogus claim. Make sure to send this certified....
(Your name)
(Your address

Collection company name
Company address

(Date)

Re: Acct# 00000000

To whom it may concern:

This letter is being sent to you in response to a notice sent to me on March 8th, 2050. Please be advised that this is not a refusal to pay, but a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) that your claim is disputed and validation is requested.

This is NOT a request for "verification" or proof of my mailing address, but a request for VALIDATION made pursuant to the above Title and Section. I respectfully request that your offices provide me with competent evidence that I have any legal obligation to pay you.

Please provide me with the following:

1. What the money you say I owe is for
2. Explain and show me how you calculated what you say I owe
3. Provide me with copies of any papers that show I agreed to pay what you say I owe
4. Provide a verification or copy of any judgment if applicable
5. Identify the original creditor
6. Prove the Statute of Limitations has not expired on this account
7. Show me that you are licensed to collect in my state
8. Provide me with your license numbers and Registered Agent

At this time I will also inform you that if your offices have reported invalidated information to any of the 3 major credit Bureaus (Equifax, Experion or TransUnion) this action might constitute fraud under both federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your company or the company that you represent, I will not hesitate in bringing legal action against you for the following:

1. Violation of the Fair Credit Reporting Act-reporting inaccurate information
2. Violation of the Fair Debt Collection Practices Act-continuing collection activity on a debt which has not been validated

Also during this validation period, if any action is taken which could be considered detrimental to any of my credit reports, I will consult with my legal counsel for suit. This includes listing of any information to credit reporting repository that could be inaccurate or invalidated or verifying an account as accurate when in fact there is no provided proof that it is.

REQUEST FOR CEASE AND DESIST OF CONTACT BY YOUR OFFICE: I would also like to request, in writing, no further contact, either in writing or telephone be made by your office to my home or to my place of employment, unless it is to provide validation or release of liability of the debt. If your offices attempt telephone communication with me, including but not limited to computer generated calls and calls or correspondence sent to or with third parties, it will be considered harassment and I will have no choice but to file suit.

It would be advisable that you assure that your records are in order before I am forced to take legal action. This is an attempt to correct your records; any information obtained shall be used for that purpose.

Thank you,

Signature
Printed name

Some people need to educate themselves here. This is generally NOT legal and they will easily back down if challenged on it. Even in the states where it is allowed the interest is usually capped at a small amount.

No way they can justify doubling that bill, that is ABSURD. They get away with it though because consumers don't know their rights and won't challenge them on it.

Send them a certified demand to validate letter. If you click on my profile you will find a link about debt validation that does a great job breaking down the process. Basically they have to send you proof that you have a legal obligation to repay the debt as well as showing everything they used to calculate this debt. Chances are when you get the validation (which may not even happen, collection agencies are horrible record keepers) that extra amount will not be there or be extremely reduced.

Definetly check out that link and some of the others there. Just be advised I am NOT affiliated with those sites, simply passing along good information.

Also in my profile, you'll see that one of my contacts is a guy named "Studly" I highly advise you to go read through some of the answers he has provided (he leaves them public) and you'll be amazed how much you can learn from him. He is a self proclaimed debt collector slayer, and damn good at it if i may say so.

Basically, your phone company sold the debt to a collections agency for pennies on a dollar. They are trying to annoy you into paying what they're asking, but if you settle it, I would pay the original amount. You can go back and forth, but even 329.00 is pure profit for them at this point. Tell them that is all you're willing to pay and if they want to resolve this, you need the fact that the payoff amount is acceptable and once paid, will come your credit report, otherwise you're not interested. Be aware, if they don't accept your offer, they can sell your debt to another company to make money and you'll be starting this all over again with a different company.

They can triple it if they feel so inclined. Read the tiny little words in the contract.

I am thinking settlement in this case would be the most beneficial in your case on this particular debt . The damage has already been done you will not be able to "undo" anything at this point

Don't send them any money until you :

A. Resolve the debt to the original dollar amount or less then the original balance
B. Get a signed dated letter in your hands stating they will accept X amount of money and it will be reported as paid on your credit report.. or just make them delete it on the credit report. Do not pay them until your holding a letter with all the specifics out lined or they will " forget" what they said.

Kourtnie D.
Prosperity Financial, Inc

If you don't pay yes they pay charge extra fees. They are charging late fees and interest fees because there funds are tieds up. Yes its not right but legally they can do this. Yes you can decide not to pay but then you will be the one ruining your credit and if they want they can take legal actions. Take you court. Take to the collection agency and you can work out a deal with them ask if they will take $450and you will pay all of it together

Offer them 60% of the amount if you pay it off in one lump sum immediately. They usually jump at the chance. If not, tell them to call you when they change their mind, believe me, this works.

No.. Usually if you hold out long enough they will HALF the amount and close the account if you pay that.

I don't think it is legal unless your state law permits such
a charge.
I know junk debt buyers would buy bad debt and sell them on Wall Street, but not sure about Collectors they may do it for a fee, if your state allows such charge, double the amount sounds excessive

http://www.ftc.gov/bcp/conline/pubs/credit/fdc.shtm

Yep they sure can read the fine print.

they can pretty much do whatever they want. your credit will suffer if you continue to not pay it, but you can try to work with a credit counselor or something and work out a payment plan.

totally legal... now if it was the company that you owed it to in the first place unless there is that much late fees no.... collection agencies chrage outrageous amount to the company for their services

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