WRONGFUL CREDIT CLAIM, HELP!

[niloca]

Hi, all

A provider who finished his job a year ago has been harassing me for 6 months, sending me a statement for "remaining of the bill". I've contacted by phone and email, reminded them that their bills were fully paid, in accordance with their policy of payments BEFORE services. While they were friendly, they keep on sending me this balance of $1,200.  2 weeks ago they sent me an ultimatum (?!): that they will move my account to a colection agency within 5 days if I don't pay. I answer that I have asked them for a proper invoice, and sent them (for the nth time) a copy of my receipts and contract. Nothing.

I am really upset now. I am in my 40's, single mom with 2 kids in college, and after the $ damage of divorce, managed to raise to a 750 fico score. I was about to refinance my condo. How can I stop this false claim from affecting my credit??? Will collection agency report to Experia and others? What can I do? Can I report them?

[starry1]

Send them a letter cmrrr demanding a full accounting of the alleged debt. Detail all the times you have sent proof of payment and how many times you have requested invoices, etc. It may not stop them from forwarding it to a collection agency, but you'll have a good starting point if you need to sue them later.

[LIGHTNIN]

I would suggest contacting your states AG (Attorney General) office and the BBB, to see if they can help.

[coterotie]

This has the earmarks of something we accountants and bankers have a finely tuned sense for.

Did you pay by check, credit card or cash?

Have you spoken with the owner or are you dealing with the "accounts payable" department?

Have you asked to speak to the business owner?  Is he usually away, on the phone, just stepped out, gone for the day?

When you call are they pleasant and say "it is just a mix up we'll get it taken care of."  Then you continue to receive automated/form letters?

[RobertEG]

I understand that you feel this is not a valid debt.  However, they apparently have a different view.

Until the matter has been presented before a court and both sides have presented their evidence, you dont have a legally wrongful assertion of debt.

If you can show that they have wilfully purused a debt with knowledge that it is not legitimate, you may have grounds for seeking punitive damages.

[niloca]

here are the answers to your question, tell me where you are going...

(but let me tell you, if you think this is some small guy scammer, think again. Biggest -or second biggest- company of its type in US, mostly attorneys.)

Paid by check and c card.

Spoke and email the accountants and secretary of head of company.

Didn't ask for head of company, everyone semed agreeable and willing to work things out, and during business were nice people, didn't want to coma across as confrontational and escalate something that I truly thought was a misunderstanding on their part.

Always pleasant, until they sent a 5 day ultimatum, knowing my personal situation well, and how I've tried to find a solution and was always available to them.

Never automated aything, personal emails from them and direct person to person calls.

What throws me off is that they never deliver services without 1st receiving payment, and their job was completed as planned and expected. Except they never sent me a final statement

[niloca]

The thing is, this is just over $1,000 ("just", but for me it is money that I need, every cent in my teacher income is budgeted for, including mortgage and two kids in college that work hard so they are not too big a burden either)

Any court anything is going to take more than that, so I am screwed already?! First because they will  (or did, haven't checked) report me and hurt my credit score, second because they may get that money just because they claim it and cornered me so, third because if I don't just write a check and pay what they ask, court will be more expensive anyway?!

And then why stop here? They can send me more claims later, saying I still owe other amounts, DON'T I HAVE ANY DEFENSE BEFORE GOING TO COURT?

After all I have all receipts for services!

[niloca]

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@starry1 wrote:
Send them a letter cmrrr demanding a full accounting of the alleged debt. Detail all the times you have sent proof of payment and how many times you have requested invoices, etc. It may not stop them from forwarding it to a collection agency, but you'll have a good starting point if you need to sue them later.

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Starry, I've done that, via email (same weigh as letter?)

I didn't demand, I was courteous but firm, attached copy of contract stipulating total cost, and copy of receipts that they issued, amounting to even more that what was contracted (office expenses, copies, etc)

The person that I dealt with directly and provided the service no longer works there, so i went the extra mile, located him, called and asked if he (who was nice and we had an amicable working relationship) could intervene. He made calls but I supposed wasn't motivated enough, so didn't push for results BEFORE the deadline they had set.

[niloca]

Thank you for the idea!!

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@LIGHTNIN wrote:

I would suggest contacting your states AG (Attorney General) office and the BBB, to see if they can help.

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I thought there had to be some recourse, some place to go to, otherwise anyone can come and say, just because they have my phone or address, "you owe us money, pay or else"!

[coterotie]

As an accountant or bank auditor we look to see where funds may be diverted.  The easiest and most popular way is for the person that handles the payments to also handle payment posting.  So they take in the money but don't mark the account paid for a while.  Usually think they will be able to win enough at the casino or something to put the money back before anyone finds out.  To keep the scheme going, they will then take someone else's payment and apply to your bill just before it goes to collections, then start over with someone else.  The scheme works best if the person paid by cash, a little harder if they paid by check.  To keep the scheme going all calls typically get taken by the bookeeper or accountant etc.  As a banker I can't tell you how many of these I was involved in.  They ran the gamut from the largest plumbing suply company and went into 6 figures, to a smaller irrigation company that was only about 80K.  We had a bunch of lawyers get taken by their bookeeper of 40 years.  Had a restaurant that a 40 year employee was able to get away with 1.2 million.

You don't have any itemized bills?  If they are attorneys the bar requires them to provide an itemized bill immediately upon your request, even for a contingency fee case.  A compaint to the local bar will immediately get their attention. 

Also an email doesn't do anything.  You need to do it on paper, addressed to the owner of the company and require his signature.  That will be a requirement should it need to go to court.

Are they local to you?  If so I would make an appointment with the company head.  If you couldn't get the appointment under your name, I would make one under a local attorney's name (with that person't permission) and show up with all the documentation that you can get.

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@niloca wrote:

here are the answers to your question, tell me where you are going...

(but let me tell you, if you think this is some small guy scammer, think again. Biggest -or second biggest- company of its type in US, mostly attorneys.)

Paid by check and c card.

Spoke and email the accountants and secretary of head of company.

Didn't ask for head of company, everyone semed agreeable and willing to work things out, and during business were nice people, didn't want to coma across as confrontational and escalate something that I truly thought was a misunderstanding on their part.

Always pleasant, until they sent a 5 day ultimatum, knowing my personal situation well, and how I've tried to find a solution and was always available to them.

Never automated aything, personal emails from them and direct person to person calls.

What throws me off is that they never deliver services without 1st receiving payment, and their job was completed as planned and expected. Except they never sent me a final statement

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