I just got a collection letter for a debt that I don't believe is valid. I already told the OC that I dispute the debt. Heck, I disputed the debt before they charged me, and they charged me anyway. How should I respond? Should I write them a long letter detailing every reason as to why I don't believe this debt is valid? Or is there some form letter that I should send?????? -------------------------------- Long story short, I canceled membership to one of those "work at home" scams after 5 months. They are claiming that I didn't give them 7 days notice so they want me to pay for the next months service. It's only $89 (Collection is requesting $140 for some reason) This was back in July, when I requested to cancel my account. They want to bill me for August, even though they turned off the account and provided no service for August and I said I didn't want service in August. I contacted my bank ahead of time and prevented them from taking out payment just in case such a thing happened. I tried to cancel on the 15th, but it was not the right debt of the company they said. So I faxed them on the 25th and they "didn't get it". So i re-faxed my cancellation request on the 28th. These people are a pain! They claim I have to pay for an extra month because in the contract I signed back in Feb said I had to give them 7 days notice. I signed the contract on the 6th of a month, so the 28th of the month should give 7 days notice. They claim billing is on the 2nd, and that it needs 7 days notice from that date. Sooooo I refuse to pay for a service I didn't want, and didn't receive just because they think they have a legal loophole to get money out of me. I don't have a job, and am not married, so I doubt they could do much to me anyway (over such a small amount), except mess with my credit report, which isn't good. There is a principle here! I spent thousands on this "work from home" business, and worked 40 hours a week for 5 months, and didn't make one penny. Not one cent. They they want to bill me even after I leave? That's just not right.
Okay, a couple of options here to consider: 1) Looking at it from the PITA factor (Pain In The A..). It might be best to negotiate payment of the original $89 for not reporting to your credit reports, or removal of any entry on your credit reports. I know the "principle" involved here, but remember the kind of company you're dealing with. It might be better to just "write it off", as an "educational expense" of living and learning. Or: 2) You need to write a letter requesting "Debt Validation" and dispute of this debt to the collection agency. Keep it simple and short: Example: Collection Agency XYZ 123 Address Anywhere, State 12345 Re: Account # ...... Certified Mail Article: 123456789 Dear Representative: Please consider this written dispute of this alleged debt, and formal request for full validation of this debt, as to my legal responsibility for it. Please provide evidence of the service provided for which you claim I owe. I am responding within the 30 days of reciept of your first notice of this debt. Please send validation evidence to my address listed above, and I further request that all further communications be in written form only. Sincerely, You will have to prepare for a battle here. First, read the contract you had carefully, look for how they define a month and/or billing period. Do you have evidence that you cancelled the contract? Does the evidence state is was within a 7 days notice? Does the contract state 7 calendar days, or business days? Most likely this is not reported on your credit report yet. Usually an agency does not report until after the 30 day window for disputing is expired. So, act quickly on a dispute. Your other avenues are complaints to your state's AG office, Better Business Bureau, and the FTC. But, none of these will settle this for you. You may want to consider taking the company to small claims court for these "damages", if they persit in this debt. You may want to ask for evidence of thier "damages", if you did not receive service for August, then under contract law they cannot demand payment for a service or product they did not provide. The thesis of "prebilling" is exactly to negate risks in these situations. The company would have to prove that they could not provide this service (recoup a loss) to anyone else. For example, if you reserved a hotel room, and did not cancel in time, the hotel could charge you if they could prove they turned someone away who would have rented it. If they rent after you cancel, then they have suffered no damages. So, you may have to pay this to save the hassle with your credit reports, then pursue for "damages" in small claims court.
He sure did. It's pretty bad--they rip you off, then won't let you cancel. But I guess that's how these guys work.
Thanks for the info bizwiz41 I shall take option #2. Hell, I'd spend more money than they want to insure they do not receive one red cent.
Make sure you cover yourself with each step, I'm sure this operation is pretty savvy at this process. Again, you probably should pay the "owed" amount, BUT claim you still DISPUTE this as your legal responsibility. Once paid, then you have suffered "damages" that you can go after. Any judge would understand that you were being "prudent" in paying the CA, as a normal person would want to protect their credit report. The acceptance of the money also adds that this was not a "technical mistake". You mentioned the "service" they provided, was this via the internet? You may want to file a complaint with the FCC as well. Good Luck!
