Major problem with Collection Agency, need advice urgently.

[Anonymous]

I received a letter to settle a debt of $380 for $192.22.

On Monday I told my fiance to write out a check and mail it out to settle the debt, unfortunately she decided it would be better to handle it over the phone and gave the CA my debit card information.

They attempted to charge me an additional $10.95 as an account handling fee, which I disputed the next day.

I was told by the representative handling the account to call my bank and have the pending charges deleted, which I did.

I then called back and was told my debit card would be billed $192.22 with the $10.95 waived.

I checked my account after obtaining a verification number from the CA and sure enough the 192.22 was charged to my account without the 10.95 this time around.

Now, on Friday, I see that they've charged my account an additional unauthorized 192.22 on top of the original 192.22 as well as 10.95.

I called my bank to dispute the charges and was told that I needed an authorization code from the CA to cancel any pending charges to my card - the bank didn't ask for this the first time around?

On top of this, these charges will cause a double overdraft to my account, running me an additional $60.00.

The CA is closed until Monday, so obviously the charges are going to post to my account - the bank says they can't do anything until the charges post at which point I can make a dispute.

I called the CA and left a message to notify them that I would be disputing the charges to my account and that they need to contact me ASAP.

I have a letter specifically saying that they will settle my account for 192.22, as well as the transaction code for that account and distinct times and dates that I called the company to make these transactions.

I realize everything should have been handled through mail, but after my fiance had already given them the debit card it all was an uphill struggle anyway.

I'm wondering what you would do in my position.

My plan is to call the CA first thing Monday and demand they refund the additional amounts charged - after that I'd like to cancel both accounts and transfer the balances to a new account with a new debit card.

Somehow I don't think the CA is going to refund the additional charges, though - and that this will become a long drawn out battle. Should I be threatening to sue over this? This has the potential to cost me a semester of college as I can't afford to pay my tuition by a measly $200 now.

HELP!

[tryingtogetitrightnow]

good luck! Sounds like the CA is being pretty underhanded. Surprise, Surprise! I think you're going to have a tough time getting the CA to do anything. Hopefully someone here has some tricks up their sleeves that they can give you.

Just for future reference, next time, PFD them, get them to send you a letter in the mail and send them a cashier's check to pay them.

As far as tuition goes, can you take out a short term loan that you can pay back at the end of the semester? Where I went to school, you could do that. Again, good luck! :-)

[Anonymous]

Actually FCRA does cover this (sorry don't have time towade thru and find appropriate section)  as will the banking law (unauthorized charges)

Make fiance cover the OD charges since she didn't do as instructed.or get the CA (harder) to cover the OD charges because of the multiple withdrawals.  Since you will have to fight with them on the second set of charges might as well for broke with them and nclude the ODs.

[gdtobefree]

Fisrt of all NEVER talk to a CA things like this happen.

Second, YOU owed the CA not your Fiance, IMO I would call them to reverse ALL charges as you did not aurthorize anyone to handle YOUR account for you.

(MODS this is the legal truth no one can handle your accounts legally but yourself or an attorney how he handles it from this post is his judgement)

Third, send them a PFD, you will only pay the 192.22 if they take it off your CR

You can get a PFD while you are on the phone with them just make sure the fax that to you in writting while you are on the phone, once you get the fax saying they will do that then take it into your own hands either try the debit card transaction again, IMO I would get that fax in my hands and then send them a money order in the mail WITH A COPY OF THE FAX.

Having a paid collection on your CR will not change your score and will affect your score for 7 years.

[MsKmm00]

You wrote this:

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@Anonymous wrote:

I called my bank to dispute the charges and was told that I needed an authorization code from the CA to cancel any pending charges to my card - the bank didn't ask for this the first time around?

And This

I have a letter specifically saying that they will settle my account for 192.22, as well as the transaction code for that account and distinct times and dates that I called the company to make these transactions

Initially you stated you didn't have anything to authorize the charges, then later you stated you do. If you have your agreement in writing, then you can dispute the charges with your bank. When you are disputing charges on your credit card, the company/person involved in the transaction will be contacted by the bank - you don't have to worry about it. The payment will be reversed until the issue is resolved.

Message Edited by MsKmm00 on 02-09-2008 06:50 PM