Due to an error in my book keeping a check that I wrote was returned to the Payee for NSF. The Payee never contacted me and later turned the check over to local collection agency. That agency called me and then sent me a letter demanding the face value of the check plus $75 as "her fee." I have informed the agency that GA law they are only allowed to collect $30 in addtion to the face value of the check. I sent a certified letter with the money order enclosed for the amount of the check plus the $30 fee. The agency returned the money order to me along with a letter threatening me with legal action if I do not pay the full amount that they are demanding. My understanding of GA Code is that returned check fees are limited to $30 only. (16-9-20 and 13-6-15) It is also my understanding of the FDCPA that collection agency cannot collect more than is allowed by law unless covered by written agreement. There is no written agreement in this case. My questions: Can these people demand whatever amount they want or are they indeed restricted by GA law as well as the FDCPA? If I sent in full payment of my obligation under GA law and that payment was returned to me am I obligated to pay it again or does their refusal to accept the payment negate their claim?
Have you contacted the original payee? If they have only asigned, and not sold, the collection, maybe they would be more willing to comply with the law and get paid. They might also not want to be a party to your complaint against the CA.
I have not contacted the Payee (Original Creditor). My only contact has been with the CA. If they sold the debt then what are my recourse options? In compliance with GA law, I made the money order out to the OC. The CA refused the payment and sent it back to me. Does their refusal to accept the payment negate their claim against me?
Did they refuse it because it was not made out to them, or did they refuse it because you didn't include the fee they wanted? Are you, and the CA, both in GA? Contact the GA state AG, and ask them.
They refused it because it was not the amount they are demanding. Yes, the CA and I are both in GA. The OC is in California.
Have you called the OC and notified them that their agent, the CA, refused your payment of the debt and attempted to collect fees that are illegal under GA law?
I have not had any contact with the OC since the check was returned to them. I spoke with them over the phone to tell them that the check was coming back and they said they didn't have it yet. They were to contact me when they got it so that I could pay it.
Wait a minute now. You wrote a check that didn't go through. When you figured out it bounced you CALLED the OC to tell them it will come back unpaid? Meaning; you found the problem and offered to make it right? ????????????????????
That is correct. I found the error in my book keeping. I realized that the check was going to bounce (had bounced by the time I called my bank) and so I called the OC to tell them. They told me that they did not have the check yet and would contact me when they got it. Instead, they turned it over to a collection agency who is demanding fees in excess of the amount they are allowed to collect under the law. I have no problem paying what I owe, but I am not giving them one dime more than I am required to.
Problem resolved. I picked up the check from the CA today. I only paid the $30 fee as required by GA law. Thanks for your input.
Keep the check, and your record of your payment, in your permanent records. As you have seen, people do not always competently do the obvious, and once something was sent to collection, there is a chance it will be collected on again, even though paid. The record that it was in collection exists, all that is needed is for the record that it was paid to be lost and it could end up in the hands of a new CA, whether they have the physical check or not. CYA.
