Our company owes a creditor $ most of which are disputed pending proof of delivery.They turned it over to an "attorney" collection agency that calls the owner at home and threatens law suits that will cost home tons of $. She now says we have to send her post dated checks and pay her $5K fee. Can we refuse to work with the collection agency or how do we get out of dealing with them until we get this resolved.
2006-11-29 03:59:07 · 6 answers · asked by le.marci 1 in Business & Finance ➔ Credit
Re postdated checks- in many states, it's illegal to either offer a post-dated check or receive one. Debt collectors have, depending upon the state, restrictions on what they can do. Check with the state prosecutors's office.
Also-your business has rights depending upon your state-check with your consumer protection agency-Good Luck!
2006-11-29 04:13:12 · answer #1 · answered by seamac56 4 · 0⤊ 0⤋
Need more information from you, but I believe the previous advice is bad.
I'll address your question first. You don't even have to talk to a collection agent/attorney! You do not have a contract or debt with this person. Your contract is with the original creditor. Any agreement is between the creditor and the collection agent.
Therefore, you always have the right to contact the original creditor and negotiate a settlement. Whether the creditor wants to talk to you is another thing, as they are not required to deal with you.
Yes, collection agencies do buy your debts, and in those cases they are the one you deal with.
So what's wrong with the previous advice? We are talking about a company owing the debt, not a consumer. These debts are much easier to collect on, and collection attorneys are anxious to get these accounts for that reason. I will bet they will sue you if this isn't handled.
True, you can send them a demand to validate a debt, but please not this is only useful in dealing with the credit bureau and removing items off your report. It certainly does not stop a collection agent from suing you.
And since this does appear to be a very large amount of money, I think you can count on a lawsuit.
So my suggestion is to get a lawyer, and have these two guys discuss the case together. (Leaches tend to talk better at the same level). If they have a good enough case, your lawyer will advise you of what to do. If this debt is as large as you claim, it's going to be outside of small claims court and the legal fees will add up quickly.
The key here is that it's the "company" that owes money, not a consumer. They do not have the same protections.
2006-11-29 06:52:17 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Do not send post dated checks - find out if your account has been sold to the collector or if they are just collecting for the creditor. If it has been sold to them they legally own the debt. you can send a letter demanding the collector to cease and desist all written and verbal communications, but this leaves no alternative for them except to file a judgement. If they are just collecting for them you more than likely can make a payment to the original creditor. If you never received the items and since the amount is so much you really should contact an attorney and let them hash it out. Hope this helps - good luck
2006-11-29 05:22:28 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If the creditor will acceot payment from you then the collection company can be told to stop calling and they should abide by it. However, many companies sell the account to the collection agency in which case you must deal with them.
Here is some additional info. Hope this helps.
2006-11-29 04:04:33 · answer #4 · answered by Anonymous · 0⤊ 0⤋
It is your money you do what you think is best for your peace of mind. Just send the collection agency a cease and decease letter I think I got the spelling wrong, and by law they are not allowed to harass you again therefore giving you a chance to get yourself in a better spot, with less stress
2006-11-29 04:39:32 · answer #5 · answered by stringhead3 4 · 0⤊ 0⤋
Absolutely. You never have to work with a collection agency if you don't want to. Under the Fair Debt Collection Practices Act (FDCPA), all you have to do is send them a "cease and desist" letter. They are barred from contacting you in any way, shape or form unless it is to sue you. If they do, they have broken the law.
See Section 805(c) "Ceasing communication" of the FDCPA:
http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm#806
Just write: "According to my rights under the FDCPA, I am demanding that you cease any and all communication with me regarding this debt." That's it.
2006-11-29 04:16:55 · answer #6 · answered by Kevin K 3 · 0⤊ 0⤋