I have purchased a hosting/domain package from 1&1 last year. They apparently bill half of the package every 6 months, so they billed my account last year and they have tried to bill it again this February. The transaction was refused by mY bank (not sure if it was due to funds insufficiency or some other reason) but nevertheless I have never received any communication regading the payment issue. Up until today when I received two separate letters from NCO Financial Systems, collecting $42.89 on behalf of 1&1. I called 1&1 to ask them what is the situation and they have told me that they tried billing me, the transaction was refused and they have emailed me an Invoice. I never got the email, the payment was not received so they have sent the debt to the agency. How can I get this taken care of without having a 7-year collection record on my report? The letter came in two days ago, dating 25th of June. It states that if the debt is not repaid in full within 30 days, they will consider it a valid debt. What does that mean and what should I do?
You could try asking them (in writing) to not report it if you pay immediately (assuming you're confident that the debt is valid and that it has been assigned to NCO). Some CAs will actually state this in their initial contact letters, presumably in the hope of obtaining quick payment.
I have had to deal with NCO and if you google them you will find some additional stories on how they violate state and federal debt collection codes with people who do not know any better. I would start with a debt validation letter. Also, tell them that per The Fair Debt Collection Practices Act and any relevant state law that would apply to you, you are not able to accept calls (especially at work) and all communciation must be done in writing. Make sure you send it certified with one of those green signature cards. It would be to your benefit if you conducted all communication in writing for two reasons. One, they can't get you so upset and trick you into saying something that would be detrimental for you if you keep it written and two, you will have written proof of any of their behavior should you find it necessary to take them to court or report them to the FTC. Whatever you do, don't give them your bank account number. If you find it necessary to pay them, insist they accept a cashier's check. In my case they wanted my bank account number (my account had no money in it) but yet they weren't willing to provide me with anything in writing to settle the account (the amount of which I had issue with in the first place).
