National Credit

[rj541]

I have a question.  I'm actually asking this on behalf of my little brother.  I've spent the last two years rebuilding my credit, and it's looking pretty good, partially because of all the knowledge on here.  I just recently got approved for a credit card with a $2000 limit...18 months ago I had to get a secured one.

National Credit, a collection agency, was authorized to take $200 out of my brother's account, he gave them the account information over the phone.  (I know, dumb move).  This was for an old apartment where they were charged $600 in fees.  Instead of taking out the $200 that he authorized (he was specific about the amount, and I'm sure it's a recorded call), they took out $600.  This caused the account to go negative by $200, plus an additional $200 in overdraft fees, so his account is at negative $400.  (I've rounded out all the amounts).   For a college kid, which he is, this is killiing him.

What's his course of action?  I called with him on the line, they originally tried to say that he needed to mail in account information showing the payment cleared.  When I told them we're not waiting 2 weeks to mail documents back and forth for an account they overdrew, they tried to push back, but finally gave a fax # to send it to.  I've faxed over account statements from Wachovia showing the payment has posted.  Do we just wait this out? 

[rj541]

To add onto my previous post:  $600 was the total owed by all 3 roommates.  The others had already paid their part, so now the collection agency has extra money because they took the whole amount from my brother, ($600), plus $200 from 2 others. 

[guiness56]

Unfortunately, the CA can collect the same amount from each of you.  If the total debt was $600 and there are 4 of you being collected against, then the CA can get $2400.  It does not seem right but, they can.

[Anonymous]

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@guiness56 wrote:

Unfortunately, the CA can collect the same amount from each of you.  If the total debt was $600 and there are 4 of you being collected against, then the CA can get $2400.  It does not seem right but, they can.

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I think this really depends on the contract of the lease.  Whether it stay everyone is responsible for penalties per each person or penalties totalling an amount per infraction which anyone person can pay 600 and done deal or spread out as long as the debt gets paid like a joint account.

[guiness56]

daboss,  if everyone signed the lease, everyone is equally responsible for the debt if it goes to collection.   And the CA can get the same amount from each person.

If you don't believe me ask O6 who happens to be an attorney and answered just this question recently.

[Anonymous]

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@guiness56 wrote:

daboss,  if everyone signed the lease, everyone is equally responsible for the debt if it goes to collection.   And the CA can get the same amount from each person.

If you don't believe me ask O6 who happens to be an attorney and answered just this question recently.

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That does not mean they can get the total amount owed from each person.  IF they owed 600 collectively where does the  extra 1200 come in?  Who are they collecting that amount on behalf of? I don't have time to research this becuase i'm about to go out but that doesn't even pass the smell test Guiness.

edit: also if they collected 800 from his brother does that mean they can collect 800 from the other roomates?

[guiness56]

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@Anonymous wrote:

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@guiness56 wrote:

daboss,  if everyone signed the lease, everyone is equally responsible for the debt if it goes to collection.   And the CA can get the same amount from each person.

If you don't believe me ask O6 who happens to be an attorney and answered just this question recently.

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That does not mean they can get the total amount owed from each person.  IF they owed 600 collectively where does the  extra 1200 come in?  Who are they collecting that amount on behalf of? I don't have time to research this becuase i'm about to go out but that doesn't even pass the smell test Guiness.

edit: also if they collected 800 from his brother does that mean they can collect 800 from the other roomates?

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Yes it does.  It is the same with a judgment.  If a total of $2400 is due and there are 4 roomates, each can be sued and $2400 collected from each.

Can't help what you smell.

[Carbusys]

guiness56: you are so wrong!

I asked my son who is an attorney. You cannot collect $2400 for a $600 judgement. It is called unjust enrichment and it is illegal. It is true that if a judgement is granted against three defendants, the creditor can go after one or all three They, however, can collect only the total amount of the judgement. So, if they collect from one, the other two are off the hook from the creditor. The roommate who paid the total amount can then go after the other two roommates for their part.

[Carbusys]

rj541:

Your brother may be out of luck.with the creditor, because the creditor can go after one, two, or all three defendants. The most it can collect is $600, the total amount of the judgement. It seems to me the only option your brother may have is to sue his two roommates for their part of the judgement. He probably will have to eat the over draft fees.

[justmindy]

I think everyone has answered the wrong question to the OP. The answer is that a CA cannot take out more than authorized. If you owe them $5000 and only agree to have $5 debited, they can only take $5. You need to contact Wachovia directly and explain what happened, then possibly contact an attorney for further advice.