Can a collection agency increase amount owe?

Anonymous · ‎07-02-2016

I have a medical collection for the amount of 560.00 I sent a PFD letter, they have not responded and now, I looked at my Credit Report to find out that the amount its 630.00 and I have not a clue as to why?

What should I do next?

RobertEG · ‎07-02-2016

Yes they can attempt collection on amounts greater than the original debt.

It is not the debt colletor who is increasing the debt, it is the terms of your original contract that defines increases in the debt.

FDCPA 808(1) specifically permits a debt collector to attempt collection of amounts greater than the original, principal amount of the debt with the OC provided that the contract that created the debt specifically authorizes such amounts, or is otherwise permittted by law.

Sending of a PFD offer requires no response on the part of the debt collector, and imposes no cease collection bar.

Only a timely DV imposes any restriction on continued collection on the debt.

surferchris · ‎07-03-2016

@RobertEG wrote:
Yes they can attempt collection on amounts greater than the original debt.
It is not the debt colletor who is increasing the debt, it is the terms of your original contract that defines increases in the debt.
FDCPA 808(1) specifically permits a debt collector to attempt collection of amounts greater than the original, principal amount of the debt with the OC provided that the contract that created the debt specifically authorizes such amounts, or is otherwise permittted by law.

Sending of a PFD offer requires no response on the part of the debt collector, and imposes no cease collection bar.
Only a timely DV imposes any restriction on continued collection on the debt.

Agreed. Your originaly contract most likely allows for the OC to tack on collection costs and attorney's fees, etc, in order to make the OC whole (financially).

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RonM21 · ‎07-03-2016

You can try the PFD attempt several times just because sometimes it depends on whos hands it gets in to. But if still no luck, I'd try paying it, then sending GW letters. But at least it would be paid at that point.

Total CL: $321.7k

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RobertEG · ‎07-03-2016

I presume that you never sent a timely request for validation of the debt, which can include an itemization of the debt?

The FDCPA provides for debt validation if requested within 30 days of dunning notice. Case law has included itemization of the debt as an item that can be requested, as does the enhanced debt collection practices statutes of a handful of states.

The PFD process is an offer to pay, not a process to seek validation of the amount of a debt.

Anonymous · ‎07-04-2016

and now they are reporting late payment. is that even legal?

RobertEG · ‎07-04-2016

When you say "they are reporting late payments," it depends upon who "they" are, and what is being "reported."

No, you do not incur late payments with a debt collector per se, as you have no account agreement with them that serves as basis for setting a due date, and thus being late on payment to them.

However, many commerical credit reports will reference lates that were reported under your account with the OC under the heading of the associated collection, making it appear that the lates were reported by the debt collector, when they were in fact reported by the creditor.

Did the lates you are referencing occur on the OC account, or are their dates and reporting clearly by and reflect asserted delinquency in payment to the debt collector?

Anonymous · ‎07-05-2016

@RobertEG wrote:
When you say "they are reporting late payments," it depends upon who "they" are, and what is being "reported."

No, you do not incur late payments with a debt collector per se, as you have no account agreement with them that serves as basis for setting a due date, and thus being late on payment to them.
However, many commerical credit reports will reference lates that were reported under your account with the OC under the heading of the associated collection, making it appear that the lates were reported by the debt collector, when they were in fact reported by the creditor.

Did the lates you are referencing occur on the OC account, or are their dates and reporting clearly by and reflect asserted delinquency in payment to the debt collector?

The Collection Agency its Trojan Professional Services, Inc., and they are trying to collect money from a dentist visit, which unfurtunately my insurance did not cover. I did not came to a payment agreement with the dentist or the collection agency, and I got an alert stating that an account provider reported that I did not pay them on time and now the account its 30, 60, 90 or more days late. The account became delinquent in January 2013.