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Where do I start? Unique situation...


hemlock
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I received a fax (3-7-07) from a collection agency. I owe a chargeback of commission paid to me and don't have the money to pay it back now. The original amount of commission I was to pay back was about $10,000. Now the balance they are asking for is over $14,000. I know I owe the $ back but do I still start with a verification letter. I have seen the one on this site and am thinking if I send it they may pursue legal action even faster? Should I just send it and wait for it to be verified and then try to negotiate??? The fax said they are going to do an "asset and Liability investigation" and they even called and left a message saying someone was coming out to take picutes etc... Where do I begin? It seems that from all I have read I should not call them back...

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I received a fax (3-7-07) from a collection agency to my business. I owe a chargeback of commission paid to me and don't have the money to pay it back now. The original amount of commission I was to pay back was about $10,000. Now the balance they are asking for is over $14,000. I know I owe the $ back but do I still start with a verification letter. I have seen the one on this site and am thinking if I send it they may pursue legal action even faster? Should I just send it and wait for it to be verified and then try to negotiate??? The fax said they are going to do an "asset and Liability investigation" and they even called and left a message saying someone was coming out to take picutes etc... Where do I begin? It seems that from all I have read I should not call them back...

Business debts are not covered under FDCPA. You can try to verify the debt, but like I said, they are not covered under FDCPA, so they don't have to play nice.

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Not sure if this is considered a business debt. The commission paid is called an advance and the fine print says it constitutes a loan. It was paid directly to me not a business. I got $20k originally and six months later a deal fell apart. Now they want half back. The OC was charging interest on the unpaid "loan" before it went to this collection agent... Any advice?

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