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Collection account decreasing $1 and then increasing $1 every month. why is this?

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Anonymous
Not applicable

Collection account decreasing $1 and then increasing $1 every month. why is this?

I have one collection that every month shows $1 paid and then  the next month shows $1 increase in amount. can they do this and is there something i can do to stop this? should i just ignore it? it is for 1748 for verizon, ironically is that we have service with verizon now. the account is from 2012. collection agency is PINNACLE LLC C/O RESURG

 

thanks for your help

3 REPLIES 3
medicgrrl
Valued Contributor

Re: Collection account decreasing $1 and then increasing $1 every month. why is this?

They can update every month until it's paid.  The fluctuation of $1 probably has something to do with their system and the balance being between those 2 amounts.



EQ 778 EXP 782 TU 729
Message 2 of 4
RobertEG
Legendary Contributor

Re: Collection account decreasing $1 and then increasing $1 every month. why is this?

Debt collectors are permitted, if the additional amount is either specifically authorized in the original account agreement that created the debt or permiited by law, to add additional amounts, such as authorized interest or permissible collection fees, to the debt.  See FDCPA 808(1).

 

Adding a standard $1 per month seems very low and not pegged to the current debt, so it may only be a computer generated amount that is standard, and not based on any specific amount authorized in the original contract with the creditor.  I would advise careful review of your original contract for determination of what specific amounts are authorized per FDCPA 808(1). 

 

If you contest the amount, yes, you can file a DV if timely, or file a dispute citing your contract limitations.

However, it is not per se improper to add amounts to the principal amount at time they received collection authority.

 

Message 3 of 4
Anonymous
Not applicable

Re: Collection account decreasing $1 and then increasing $1 every month. why is this?

If you have the funds to pay it, why don't you just settle the account? It will stop updating.

Message 4 of 4
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