Please help! Question regarding collection agencies and debt?

Question

I live in California(not that it matters), and my husband wanted to advertise appliance repair in the Verizon yellow pages. He was working independently, doing house calls, and making repairs.
He called Verizon, and placed an ad in their phone book. The ad was not the way he ordered it, but it was too late to change it since it was already in print. The next year, they renewed the ad subscription(even though we cancelled it), because they say that they have that option.
The problem now is that we owe $2400 to a collection agency(because of non payment obviously), and they want $400 a month. Problem is, we cannot afford an extra $400per month. I've tried making other arrangements with them, but they say no! They also say that if it goes to court, since it's supposedly for a business, that we'll be "screwed"!
What can we do? Please offer some advice!
Thank you!

I don't know if it makes a difference, but the collection agency is in Ohio...and as I said, we're in California.
Thanks again!

I have corresponded with the collection agent on the telephone, and have most recently corresponded through e-mail. I even offered up to $300 per month, but they will not budge!
When my husband originally placed his advertisement, it was done over the telephone.
Thanks again...your answers are really helping!!!

Answer 1

You should contact your states attorney generals office regarding this matter. Here is the link:http://caag.state.ca.us/
Did they send you an original contract stipulating that the renewal would be done automatically?
Do you have anything in writing to show you entered into a legal agreement with Verizon?
These are things to consider.
Until it is resolved, tell the collection agency you will not make any payments (making payments starts the clock on the debt).

This may buy you some time or even get the debt removed depending upon the contractual agreement.

Answer 2

There are to many variables in your question and that makes it difficult for anyone to give you an answer that you can run with.

Much depends on how your husbands business is set up and if he gave a personal guarantee to Verizon.
How the contract with Verizon is worded as far as cancelling the account.
If the contract cancellation policy was followed.
If you have proof of the cancellation.
(those are just a few examples)

Generally with business to business debts the FDCPA, FCRA, etc., offer no protection to the debtor.
If the business profit/losses were reported on income taxes, there may not be protection under the FDCPA, etc.

Again, depending on how the business is set up and the personal guarantee. If it is a home based business that is not properly incorporated it "may" be possible to find protection under the FDCPA.

If they sue under the personal guarantee, then they would be suing him as a person and not a business and he "may" have protection under the FDCPA, etc.

If the contract was followed when cancelling (and hopefully it was done in writing) then your husband would have a defense in either forcing Verizon to recall and drop the debt or a defense if a suit is filed on the debt.

As you can see, there are to many variables.

My suggestion would be to gather every bit of information, your Verizon contract, your cancellation notice to Verizon, the collectors notices, your business info, etc., etc., etc. and speak with an attorney.

Answer 3

First thing first, stop dealing with the collection agency. Collection agencies usually purchase bad debts from companies who have already have written them off. Before your debt went to a collection agency, you should have been contacted by Verizon asking for payment of this bill. If you have not been contacted by them at all, I would seriously question the validity of the bill. Hell, I would even go so far as to request a copy of the bill.

Now before we get into the collection agency, the first thing you need to do is get a free copy of your credit report and see if this Verizon thing or collection agency info is on your credit report. You can get a copy of your credit report for free here: https://www.annualcreditreport.com/cra/index.jsp

Now to the collection agency. They will tell you anything under the sun to get you to make a payment. There are some agencies who will tell you that you owe money even if you don't, that is why I told you to get a copy of your credit report. Remember these words "COLLECTION AGENCIES WILL TELL YOU ANYTHING". They are not going to take you to court for $2400, and if they threaten you with it again you need to get that person's name and information and threaten to sue them for harrassment. I left some more information below, hope it helps.

Answer 4

The second and third posters offer very good advice.

I'd like to add that if you've offered to make arrangements with them and they've refused and the do take you to court (which they won't bother over such a measly sum) and you tell the judge they refused to work with you on a payment plan, the judge will throw it out.

Remember if you mail them anything, do it by certified mail with a return receipt so you know that someone signed for it and you have proof of delivery. Keep all documents!

Answer 5

send the collection agency a verification of debt letter,Here is what you send

(This validation of debt letter would be sent to a collection agency or debt collector asking them to send you valid proof of a debt. send a copy to the credit bureau if they ignored your previous requests. Remember to send all correspondence via certified mail.) customize for your acount

Date

Your Name & Address

Collection Agency Name & Address

Re: Account Number

Please be advised that I have received your correspondence. This is not a refusal to pay or a cease notice, but a notice that your claim of monies owed is disputed. According to the FDCPA you must validate a debt to a debtor if the debtor responds to your primary notice within a matter of days. I have done that, my certified mailing number is :_______________________________

Under the FDCPA and according to recent findings with the Federal Trade Commission, you must send valid proof of this debt and a printout of records is not valid. See FTC.gov "staff attorney opinion" findings for details. Please do not waste my time or yours by sending back a print out. The proof requested is as follows:

 Date you purchased debt
 Amount you paid for said debt
 Date of last payment/activity if any
 Creditors full name and address
 All records pertaining to actual debt to prove validity.

If you cannot produce such proof after I have put you on notice then I reserve the right to file a suit against you for FDCPA violations in my court's venue. You will have to travel to defend yourself in that scenario.

Please also be advised that this request is an official validation of debt request and not a 'verification of address" request. Proper proof of said debt is required. Please understand as well that under the FCRA any "furnisher of information" must put the account rating on hold while the debt is being investigated. Continuing to report this disputed debt to my credit reports is a FCRA violation also open to damages collected from you.

Awaiting your reply in a timely manner.

Sincerely,

[Signature Required]

Answer 6

What does the contract say.He should of had the option to change his add.