I received a letter today from a collection agency threatening legal action if I do not make payment within 7 days, that being January 17th. The debt originated from a traffic fine. I had let my auto insurance lapse (unknowingly). The fine totalled $2050. The accident was in September and was turned over to a CA who immediately added $1025 and started charging 10% interest. The total owed now is $3260. I don't have any money. I could come up with a few hundred dollars from friends but certainly not even 25% at this point. I called the lady at the consumer credit counceling service with whom I had met previously. She thinks it is pretty important to deal with this sooner rather that later because it is a legal issue. But how do I deal with it if I have no money. Should I call the CA and explain that I don't have a steady income - none now. And that I have absolutely no money to offer in settlement? Should I call their bluff and wait until after Jan 17 and see what happens.....? Thank you in advance for help given.
Did you send them a debt validation letter? It doesn't seem like you did, check out the forum for the form to send, and mail it today registered with return receipt.
Misinformation. That is total mis-information and bad advice indeed. The poster stated that the amount owed was the result of a fine for failure to have auto insurance. Fines are levied by government entities and have no connection to consumer debt. When collection agencies collect taxes, fines or other such non-consumer related debts the Fair Debt Collection Act does not apply. They don't have to validate. But there is one thing to consider anyway and that is whether or not the law giving the governmental agency or entity the right to assign such things as traffic fines also allows the collection agency the right to assess such fees or interest as this one is charging. If they are not authorized to add on additional interest then how much can they add? You will have to study the laws, rules, regulations or whatever gives the governmental agency the right to assign to find out about such things. They might be collecting for government but if they overstep the bounds of their authority then they can be sued and you can complain to the authority that granted them the power to collect.
