PFD advice needed - Valley Creditors

[electra]

I sent a DV to Valley Creditors for a $640 Collection for preschool tuition.  They sent back pretty detailed documentation including an account itemization from them which includes the original $640 owed plus $295 in interest they are claiming as well as the original invoices from the preschol.  The DOFD of this was 10/2007 and I'm in CA so it's beyond SOL.  Not sure if this makes any difference but one thing of note is that their invoice says "Single account: Ex Husband's name" although the statements from the preschool lists us both.  On my credit reports it says I'm co-signor.

My next step will be to send them a PFD but I'm not sure how much to offer.   I'm thinking $400?     Any recommendations?

[RobertEG]

Up to you.

PFDs are usually hard to get even when offering the full amount.  You will most likely have a better shot if you offer to pay in full.

The fact that it is outside of SOL eliminates their option of securing a judgment, so may influence their decision.

As a side issue, do you concede to the additional amount they are tacking on to the principal debt?

FDCPA 808(1) specifies that it is a violation to attempt to collect any amount that is either not specifically provided for in the original account agreement or is not otherwise provided for by law.  Is that fee authorized in your original account agreement, or is there some provision of your state law that permits a debt collector to collect amounts not specifically authorized in the original account agreement?

Fighting any additional fee will, of course, put your PFD negotiation on hold.

[electra]

Thanks Robert!

I'm actually fine with  PIF ($640) but DO NOT agree with the $295 in interest.  I figured I'd offer $400 and then if they came back demanding the entire amount I'd offer $640.  Really though, I'd just like to get this off my reports as fast as possible because I'm going to try for a car loan in March.

In terms of whether the interest is legal, that's a good point and I'm not sure.  I'm in CA and I found this from the CA Attorney General's website:  

Interest Charges.

A collection agency can add interest to your bill, however, the terms and rates depend on the circumstances of your particular account. The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) must be expressly authorized by the agreement creating the debt or as permitted by law. An attorney should be able to tell you how much the agency can legally charge you. You are also entitled to an explanation from the collection agency as to how much they are charging you and why. You should ask them by letter to explain to you in writing.

I no longer have any documentation from this preschool so I couldn't say whether there was a provision in there for charging interest but I doubt it because they sent me statements from the preschool where it was listing over 120 days late and no interest being charged.   Haven't been able to figure out for sure either what is allowed by CA law.    

Should I offer to PFD $640 and say I disupute the $295 as being valid?  Or, would that derail the whole thing?  My goal is to get this off my reports as quickly as possible. I'm good with paying the $640 but would prefer not to pay another $300 in BS interest but I guess I would consider it.    How much is this hurting my score?  It should drop off in about 2 years.

It's $300 so I don't think it's worth consulting an attorney about the interest as that's probably about how much I'd have to pay for the consult!