Can collection agent do this?

Question

I recently got a letter from the collection agency saying I owed my chool medical center $200 plus they accrued interest of $45. and the collection agancy also filed this collection to credit report which hurts my credits a lot.
Question:
1) can the collection angency charge me interest rate, I asked my school who did not accrue any interest, so basically the collection angency added the interest themselves.
2) Can they file to the credit bureau to have my credits affected to force me to take care of the debt.
3) My wife happened to give the collection angency my credit card number when they talked to her on the phone, can I have the bank to stop paying for collection angency unhil I get things straight out .

Answer 1

Yes, the collection agency can legally tack on interest charges. However, it is just an effort to try and increase their profits.

When you didn't pay your bill from the school medical center, it became known as a charge-off. Meaning, the original creditor has given up on collecting it the normal way, and has now assigned a collection agency to get their money. The collection agency paid around 3 to 5 cents on the dollar for this debt, so anything they collect above that is profit.

The collection agency certainly can report your account as delinquent to the credit bureau. It will stay on your credit report for 7 years. However, one thing you can do is demand that they remove their entry from your credit report in exchange for payment. Make sure you get this agreement in writing before sending them any money.

If your wife paid the collection agency with your credit card without your permission, you can file a dispute with your credit card company. The credit card company will start an investigation, and if the results are found in your favor, you will get the money back. However, if she is a joint account holder or authorized user, and paid with her own credit card, you might be stuck. Check your credit card statement first. If no transactions have taken place from the collection agency, report it at as lost/stolen so the collection agency can't charge your credit card.

Answer 2

1. Not really sure if they can charge you interest or not, but i have had bad debts that went to collection and never was really charged any interest.
2. Yes they have the right to file your unpaid balance to credit bureau. Usually, they will try to collect the balance if you dont co-op they will put it on your credit.
3. Just call your bank and tell them you lost your Debit/ATM card, they will replace it by sending you a new card with a whole new Debit/ATM/Credit Card number, when the collection try to take money out transaction will be declined. Good Luck

Answer 3

Ok, I am just going to try to answer these from what I know about collection agenices in general so...here it goes...

1) I'm going to say that they shouldn't be able to be able to do this. But it may be possible that the school hired a collection agency and then added their cost to the total cost of your bill, which may be seen by the collection agency as "intrest charges".

2) Yes they can, and they will, because it is an assured way to make you give a quicker payment.

3) If she already told them the number, then they have probably already made the transaction and their is nothing you can do to stop it now.

I hope this helps.

Answer 4

1. The collector can include fees/interest IF it is stated in your contract with the original creditor and IF your state allows it.
If it is not in the original contract the collector cannot legally charge interest and/or fees.
If it is in the original contract but your state does not allow it, the collector cannot legally charge interest and/or fees.

2. Yes, if the collector has the debt they have a legal right to report it on your credit reports. It must be reported correctly or you have a legal right to dispute it.
The reporting period would start from the last payment you made on the account before it charged off and can report for 7 years from that date. It cannot legally be reaged to report for a longer period.

3. Speak to the bank about stopping the payment.

Answer 5

yes they can charge you interest..but there is a cap on how much they can charge.
all they can do is report you as delint
and yes you can have they payments stopped as you did not give them permission your wife did..NEVER EVER give a collection company any financially info about yourself..ie credit card info,bank account info
Urgent: The Debt Collector's "Tool Box" Reveals One Nasty Little "Tool"



Unintentionally, you give debt collectors everything they need to tie the noose around your neck. Take away their favorite "tool."







Debt collectors want their...rather your...money. They don't (appear to) care if they have no legal right to collect.



They want to get paid, believing it's your responsibility to prove they don't have a right to collect.



This is WRONG! You and I know it's wrong, but this is REALITY with debt collectors.



How low will some debt collectors go?



What recently (and tragically) happened to Jim & Robin T. of Orlando, FL, sends shivvers down my spine.



Don't Play Around With Debt Collectors...They're Trained Debt Assassins!



By all means, stay off the phone with debt collectors.



They're trained to extract information from you...information to be used against you.



Before you consider paying one penny, confirm:



You’ve forced debt validation with the OWNER of the debt, verifying it is your debt and that the collector has the legal right to collect the debt.



You also have disputed (ala 1-2 punch) with the Credit Reporting Agency or Agencies reporting this alleged debt.



At this point, you’ve resolved to negotiate a settlement with the owner of the debt, i.e. the collection agency.



Of course, you realize all negotiations must end up in writing and that you are not giving any personal information not already available to the debt collector.



In other words, you’re not *confirming* anything.



Once the debt collector absolutely has confirmed the debt and is not guilty of any violations of the Fair Debt Collection Practices Act, you may proceed with negotiating a settlement, should your situation warrant this action.



Don't Make This Mistake!



Action Item: Yet, do *not* make the same mistake as countless others who have contacted us after the fact: They have given their bank account information, set up automatic payments or even paid with a check.



Either way, this is a BIG mistake!



Only use cashier’s checks or money orders sent with tracking number so you have sufficient record of receipt.



The debt collector can get an order of attachment from the court, provide that order to the sheriff, who then serves notice of levy upon your bank (you know, the check you wrote in good faith to the debt collector contains your pertinant banking information.



Any money you have in that bank account at the time of levy can and will be taken from you to pay the debt collector).



Jim & Robin learned this tactic the hard way, when not only did they have their bank account cleaned out but also a shocked Robin discovered her wages were garnished. What makes this even worse (if that's possible) is that they almost lost their home in which they had just move with their children. They couldn't make their payments.



Do you think the debt collectors care about your children, grandchildren or house payment?



You see, some collection agencies will agree to settle with you for less than you owe them. However, the debt collector will then sell your remaining debt to another collection agency, which now authorized them to go after you for the remaining balance.





Fair Debt Collection Practice Act ... Your Rights!

Once a creditor deposits or cashes a full payment check, even if the debt collector crosses out the words "Payment in Full" or includes "I don't agree" on the check, the debt collector cannot legally go after you for the balance.

This common practice is illegal in some states, though that doesn’t stop many debt collectors from preying on your ignorance (that is, your lack of understanding of your rights).

The states enforcing this law include:

Arkansas, Colorado, Connecticut, Georgia, Kansas, Louisiana, Maine, Michigan, Nebraska, New Jersey, Nevada, North Carolina, Oregon, Pennsylvania, Texas, Utah, Vermont, Virginia, Washington, Wyoming

***IMPORTANT** Absolutely confirm with your State’s Department of Consumer Affairs or your attorney regarding collection laws. We are not attorneys and are not guaranteeing accuracy of the aforementioned list or its interpretation.









On The Other Hand, Where Do You Live?

Some states, however, have modified this law to read that if a creditor cashes a full payment check, that debt collector retains his right to sue you by inserting the following statement to the endorsement of the check, money order or cashier’s check:

"Under Protest or Without Prejudice."


The aforementioned statement written as it appears (no derivation) legally allows the debt collector to go after you for the remaining balance.

The states with the modified law include:

Alabama, Arizona, California, Delaware, Massachusetts, Minnesota, Missouri, New Hampshire, New York, Ohio, Rhode Island, South Carolina, South Dakota, West Virginia, Wisconsin


***IMPORTANT** Absolutely confirm with your State’s Department of Consumer Affairs or your attorney regarding collection laws. We are not attorneys and are not guaranteeing accuracy of the aforementioned list or its interpretation.





To harm you beyond intimidation (which is not allowed under FDCPA), debt collectors need a court judgment.

Once debt collectors gain a judgment, the gloves can (and usually do) come off...at this time, you should contact an attorney, especially if you have assets on which a lien can be attached or a bank account that can be levied or even an income that can be garnished.

Thank you for your commitment,



Mike Payne



P.S. Please email us at credit-success (at) comcast.net if you've suffered a similar experience with debt collectors. What happened? What did you do? What did they do? What would you do differently today, if it were to happen?

Answer 6

no but you can sue them back for not validating the debt
and falsely obtaining your credit card number.

www.creditinfocenter.com