Reply
Regular Contributor
Posts: 155
Registered: ‎04-04-2011
0

Collection Notices Received After Settling Bills

My boss received some invoices from Sacramento Metropolitan Fire District for some false alarm calls that occurred because ADT's fire system equipment was malfunctioning so they kept calling the fire department.  There was a total of 3 bills sent each of which was $321.83.  After several months of fighting these charges, we were eventually able to get the Chief Financial Officer of Sac Metro to agree to allow us to pay 50% of the total charges ($965.49 x 50% = $482.75) which I have in writing in the form of an email.  Once they agreed to this, we mailed a check for $482.75 the same day.  The email also said to mail the 50% check payment to the address that the Supervising Fire Chief was at rather than sending it to the payment office listed on the invoices.  

 

Fast forward one month and today we received 3 collection notices for the original amounts of $321.83 with interest added on.  The notices themselves even say "SAC METRO FIRE DISTRICT has informed us that the PAST DUE status of this account could be a simple oversight."  

 

I have contacted the collection agency and told them about the situation.  They said they are waiting on a call from Sac Metro Fire District to verify that the accounts were settled in full (for the 50% payment).  We settled this matter prior to the accounts being taken to collection.  My question then, if the collection agency wants to continue to push for payment even though we already received it, what actions can I take to cease the collection efforts on these accounts?


Starting Scores (lender pull 3/27/10): 759 (EQ), 752 (TU), 749 (EX)
Current Scores (myFICO 4/4/11): 768 (EQ)
Goal Scores: 800


Take the FICO Fitness Challenge
Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
0

Re: Collection Notices Received After Settling Bills

The rules for consumers don't apply for businesses. In other words, the FDCPA doesn't apply. However, you can always pretend it does and proceed that they'd follow the same rules as if you were a consumer. If choosing that route, send a DV.

Regular Contributor
Posts: 155
Registered: ‎04-04-2011
0

Re: Collection Notices Received After Settling Bills

Ilecs,

 

The ownership of the commercial site is actually in my boss' personal name rather than his business.  Would the FDCPA still not apply in this case?


Starting Scores (lender pull 3/27/10): 759 (EQ), 752 (TU), 749 (EX)
Current Scores (myFICO 4/4/11): 768 (EQ)
Goal Scores: 800


Take the FICO Fitness Challenge
Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
0

Re: Collection Notices Received After Settling Bills

[ Edited ]

It would still be business-related unless the CA is specifically mentioning the boss [as the debtor] w/out mentioning the company. That's not to say it wouldn't hurt to send a DV. No harm in doing so, IMO.

Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
0

Re: Collection Notices Received After Settling Bills

I'll add that the FDCPA defines a "consumer" (aka the debtor) as:

(3) The term "consumer" means any natural person obligated or allegedly obligated to pay any debt.

Epic Contributor
Posts: 20,645
Registered: ‎03-19-2007
0

Re: Collection Notices Received After Settling Bills

REgardless of whether the debt collector actions are covered under the FDCPA, if the debt is paid, there is no debt upon which any debt collector may continue collection activities. 

 

While civil action might not be based on the FDCPA if not considered personal, which in this case it arguable could be, their would still be civil remedy under state law governing a business attempting to collect on a non-existent debt.  Its just a venue issue.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.