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Collection agency charging fees, how can we find out if allowed in our state?


dragonfly95
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My husband had 2 seperate surgeries in a short time. One was planned and one very unexpected. In the process, we had bills coming in from everywhere and one got misplaced I guess. The next thing we know, we get a letter from a collection agency about it, with the amount due. It had been split into two (because it was anesthesia and it goes to two different people) and therefore came as two accounts. Both accounts have fees from the collection agency that are almost a third of the amount owed! Now, we don't mind paying what we owe to the anesthesiologists (and I know I probably butchered that spelling), but those fees are insane. We've had things in collections before that never charged any sort of fees. We live in Kentucky, the surgery was in KY. The collection agency is in TN and I am trying to find out if it's just that KY doesn't provide for collection agencies to collect fees. I can't find the information anywhere. Does anyone know where to go or what to do? We really can't afford the extra!

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My husband had 2 seperate surgeries in a short time. One was planned and one very unexpected. In the process, we had bills coming in from everywhere and one got misplaced I guess. The next thing we know, we get a letter from a collection agency about it, with the amount due. It had been split into two (because it was anesthesia and it goes to two different people) and therefore came as two accounts. Both accounts have fees from the collection agency that are almost a third of the amount owed! Now, we don't mind paying what we owe to the anesthesiologists (and I know I probably butchered that spelling), but those fees are insane. We've had things in collections before that never charged any sort of fees. We live in Kentucky, the surgery was in KY. The collection agency is in TN and I am trying to find out if it's just that KY doesn't provide for collection agencies to collect fees. I can't find the information anywhere. Does anyone know where to go or what to do? We really can't afford the extra!

I live in Tennessee..if you will post the name of the collection agency, I will see if they are even licensed as a debt collector in Tennessee and we can go from there.

Please reply to my post and I will try to assist further...but we do have some good laws in Tennessee pertaining to debt collectors and attorneys.

First of all, never talk to a debt collector by phone ! Always send them a letter by CMRR asking them to show that they have been formally assigned the right to collect the debt. Tell them that you must have proof that they have legal standing and the right to collect.

In your letter, cite these laws:

REGARDING DEBT COLLECTION IN THE STATE OF KENTUCKY

Kentucky Revised Statutes (REGARDING ASSIGNED DEBT)

371.050 Assignee to aver consideration --

AMOUNT RECOVERABLE

"In an action on any assignment of a writing, the "consideration" for the assignment shall be averred. The plaintiff shall recover no more than the consideration actually paid by him for the note or assignment." @ KRS 371.050

...also noted:

And as to TENN CODE ANNOTATED CHAPTER 674 PUBLIC ACTS 2004 SECTION 62-20-127 as amended , You are required to show proof of consideration paid or given for an assignment, and required to fully comply with this code, showing proof of a valid assignment , manifested by an acknowledged, properly executed written agreement, showing the date of the agreement stating that the assignment was or was not voluntary, SHOWING PROOF OF VALUABLE CONSIDERATION PAID OR GIVEN, IF ANY. You are encouraged to review this code in it's entirety, as it explains limitations and requirements of Debt "assignees" or Debt Purchasers.

And as to your valid assignment ....we demand strict proof thereof in compliance with the above code as stated.

Post the name of the Debt Collector...I will see if they are licensed in Tenn and Kentucky.

Edited by Informed
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