scooter64 Posted June 9, 2005 Report Share Posted June 9, 2005 I have paid the amount owed to a company not the collection agency. The orignal company accepted the payment and I am now current with them, but the collection agency still wants their percentage? Am I legally bound to pay them, even though they have not collected any money from me? I send them a written letter that the debt was paid to the original owner.Please helpThanksScooter Link to comment Share on other sites More sharing options...
GreatGadsby Posted June 9, 2005 Report Share Posted June 9, 2005 I don't think you have to pay them. contact the OC and have them recall the account from collections as it is now current. Link to comment Share on other sites More sharing options...
scooter64 Posted June 9, 2005 Author Report Share Posted June 9, 2005 Do you know of any document that I can refer to? I have tried that with the creditor but they claim I still owe the collection agency.Thanks Link to comment Share on other sites More sharing options...
codename_fortyseven Posted June 9, 2005 Report Share Posted June 9, 2005 You never have a legal obligation to pay a CA anything. Let's try this one on for size: No debt exists, so no fees, interest, etc... exist. Suck on itAngry consumerIs this being reported to the credit bureaus? Link to comment Share on other sites More sharing options...
scooter64 Posted June 9, 2005 Author Report Share Posted June 9, 2005 not yet but I just want to make sure that it is not reported Link to comment Share on other sites More sharing options...
GreatGadsby Posted June 9, 2005 Report Share Posted June 9, 2005 Do you know of any document that I can refer to? I have tried that with the creditor but they claim I still owe the collection agency.Thanksthe OC told you that you still owe the CA? Link to comment Share on other sites More sharing options...
scooter64 Posted June 9, 2005 Author Report Share Posted June 9, 2005 Yes that is correct Link to comment Share on other sites More sharing options...
GreatGadsby Posted June 9, 2005 Report Share Posted June 9, 2005 that sounds fishy..... maybe in a contract where you agreed to pay collection costs if you defaulted? there's another post around here from yesterday or today on this same type of topic...... I can't seem to find it though, I thought I saw one.........anyway in that topic I'm pretty sure some of the bigwigs said that you don't have to pay the CA. Link to comment Share on other sites More sharing options...
ghacorp Posted June 9, 2005 Report Share Posted June 9, 2005 Scooter,You should request the collection agency send you a copy of the collection agreement which is similar to a DV request. Then you will know where you stand on the matter. Typically the OC is responsible for paying agencies and the contract is between the OC and the CA and not you. Should you receive notification that you are responsible, write the creditor you paid and request they refund your settlement so that you may give the CA their cut and the rest goes back to the OC! Link to comment Share on other sites More sharing options...
reno2360 Posted June 10, 2005 Report Share Posted June 10, 2005 That's right. The beef that the CA has should be settled with the OC, not you. If the OC didn't honor their contract with the CA by accepting your payment... tough. It's not your fault. Tell the CA if they have a problem it is with the OC and to deal with them. Link to comment Share on other sites More sharing options...
scooter64 Posted June 10, 2005 Author Report Share Posted June 10, 2005 Creditor says they accepted it as partial payment. Does anyone have or know where legal document that support what all of you are saying? I need proof before they report to my credit reportThanks,Scooter Link to comment Share on other sites More sharing options...
GreatGadsby Posted June 10, 2005 Report Share Posted June 10, 2005 can you give us the amounts. original debt, interest, how much you paid the oc, stuff like that? Link to comment Share on other sites More sharing options...
GreatGadsby Posted June 10, 2005 Report Share Posted June 10, 2005 and what kind of bill was the original debt? Link to comment Share on other sites More sharing options...
Radio_Guy Posted June 10, 2005 Report Share Posted June 10, 2005 That's right. The beef that the CA has should be settled with the OC, not you.Yes this is true... generally a OC has the obligation to pay the CA for collection services if the OC eventually gets paid off directly. Some poorly written agreements can cause the CA to try to collect directly from you however this is a fight between the OC and the CA and usually you're aren't liable. Also I suspect this may be a violation of FCRA. I send them a written letter that the debt was paid to the original owner. Did you mean that you already SENT them a letter stating that the debt was paid to the OC? - if so you can't DV them because you have admitted that the debt was yours... Link to comment Share on other sites More sharing options...
scooter64 Posted June 10, 2005 Author Report Share Posted June 10, 2005 I sent them a letter stating that is was not a debt, it had been paid in full. They claim they still are entitled to there fee since it was turned over to them. The creditor has my account frozen until I pay the fee to the CA.Just talking to them is not working.... They are both united in the issue..Thanks,Scooter Link to comment Share on other sites More sharing options...
scooter64 Posted June 10, 2005 Author Report Share Posted June 10, 2005 The debt is for maintenance fee on a timeshare and was over 180 days late and yes I did pay the late fees. They turned it over to collections and I payed the creditor not the collection agency. When I talked to the creditor today they said if I would have put on the check paid in full, they would have returned the check, yeah right. The fee is 33 1/3% of maintenance fee. Maintenance fee is $833 and the fee is $265 about. Link to comment Share on other sites More sharing options...
GreatGadsby Posted June 10, 2005 Report Share Posted June 10, 2005 have you checked your state's statutes to see if interest can even legally be charged? Link to comment Share on other sites More sharing options...
Radio_Guy Posted June 10, 2005 Report Share Posted June 10, 2005 Scooter,I think you need to follow ghacorp's advice above. I suspect that your agreement with the original creditor spells out what you are being told over the phone. (Timeshares are b@#$%&*!.)Either way if you piss of the CA they will report you. If you give them their money quickly and painlessly they may not report you at all. However, before you pay them make sure you get a PFD agreement signed.(I am assuming that the CA wants the $265.00. - right? If so that is not a whole lot when protecting your credit. Sometimes it is easier (and cheaper,) just to pay rather than fight.) Good luck. Link to comment Share on other sites More sharing options...
divemedic Posted June 10, 2005 Report Share Posted June 10, 2005 OK, DV the CA and ask for a SPECIFIC itemization of the bill. Also, read the Fields case, it specifically addressed this issue.http://debt-consolidation-credit-repair-service.com/phpBB2/viewtopic.php?t=26481also, so did Veach v. Sheeks, 316 F.3d 690, 692 (7th Cir. 2003) Link to comment Share on other sites More sharing options...
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