I am in a dispute with a hotel over an amount charged to my credit card. My credit card company agreed with me that I was wrongly charged, and reversed the charge from my account.
The hotel chain has been contacting me directly, demanding payment, and threatening to ruin my credit if I don't pay them what they are demanding. I have written them, disputing the charge, and stating I will not pay.
How easy is it for them to go to court, get a judgment, put it on my credit history, and thus tarnish my credit score? How much would it tarnish my credit score? The dollar amount is less than $100.
2006-06-27 17:28:47 · 4 answers · asked by West Coaster 4 in Business & Finance ➔ Credit
Okay, suppose they use a collection agency ... before a collection agency is able to put something on my credit history, don't they have to substantiate that the amount is actually owed ... ie. they would need to go to court?
2006-06-27 17:58:26 · update #1
MAN! Do I disagree with Paula M's advice!
Here, let me steal $100 from your wallet and then you can try and sue me for it later. Is that how your world works Paula? Not mine!
You take my money, I call the law and you go to jail!
If you ruin my credit with unvalidated reports, causing my credit to be ruined and costing me more money down the road....I call the law! You will be sued, and if you make a habit of it you will go to jail!
Follow Echo's advice. Except for the part of recording the conversation it's perfect. Remember, threats are covered under the Fair Debt Collections Act, but only if it's done by a collection agency or attorney. The original creditor can be as big a jerk as they want.
If this gets turned over to a collection agency, they must send you a letter informing you they are collecting the debt. In it is your warning that if you do not dispute this within 30 days, they will assume it's a valid debt.
At that time, you send them a dispute letter, demand the debt be validated, and tell them to cease and desist all communications with you.
Contact the hotel one last time. Tell them to either validate this debt properly or sue you. Inform them of the Fair Credit Reporting Act and if they post to your credit report you will sue them for $1000 plus damages.
If you do all these things I think your problem will disappear.
2006-06-29 09:24:56 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Are they using threats in writing? Or on the phone?
If they are using threats in writing, save those letters. If they are threatening you by phone, check your state laws on phone taping. See if you can legally tape them without having to tell them that you are. Next time they call, tape the conversation. Just don't bait them into threatening you.
When you send debt validation letters, be sure and send the certified mail return receipt. (papertrail) Do not say in those letters that you are refusing to pay, tell them that the debt is in dispute and you are requesting validation not verification. Also, to stop the phone calls, include a mini cease and desist. Tell them that it is inconvenient to receive phone calls to your work or home. Any further correspondence with you should be done by the USPS.
One thing in your corner is that your credit card company agrees with you on that charge. You might request from that credit card company, in writing, what they felt was wrong with the charge resulting in them to reverse the charge.
edited to add: A collection agency can put it on your credit reports - but - they have to notify you in writing first. AND, if you have disputed the account and they have failed to validate it, they would be violating your rights by placing the account on your reports until they properly validate.
2006-06-27 18:07:47 · answer #2 · answered by echo 7 · 1⤊ 0⤋
If the amount is less than $100 - I would pay it and put it behind you.....the real world is that if they send it to collection and it shows up on your report......You will experience a huge financial hit in increased interest rates.....Also...
Universal Default - most credit card companies conduct sporadic credit checks and if it's not "up to par" - than can and will smack you immediately w/ a high high interest rate......
pay the money - and then dispute and pursue a refund.....it's not worth it to fight it at the front end.... good luck.
2006-06-27 18:24:48 · answer #3 · answered by Paula M 5 · 0⤊ 0⤋
I don not think that they will take you to a court, but they may try to collect their money through a collection agency, and that usually shows up in your credit.
Try to talk to the hotel management.
2006-06-27 17:46:35 · answer #4 · answered by Mirro 2 · 0⤊ 0⤋