Had an accident with a rental. Rental company (RC) immediately charged 500 to credit card without explaining the reason or giving details. I disputed successfully with credit card issuer and it was charged back to them. RC than started collecting $500. Faxed and emailed a coupla times asking what the 500 is for including the typical validation request (without certified mail); no response. RC 'collection dept' now sending collection letter. Should I send validation letter certifed mail just like for a 'real' collection agency. Does it make sense to call them at all? It's a little weird that they are not explaining the $500. The insurance co has paid the claim (months after the accident and the $500 charge) except for administration fee, tax and loss of use. These 3 also amount to just over 500. I wonder if RC assumed these expenses would not be paid by insurer and tried to charge them. RC also fixed preexisting hubcap damage. UPDATE: In a short phone conversation someone said that it's for my insurance deductible. I said that I don't have an insurance deductible (it was all paid by the credit card insurance in this case). The guy said something I could not hear and disconnected. I think it's the end of the day, so I'll try them tomorrow.
Do they still have the $500, or did you dispute thru your credit card company? If so, why are they trying to collect?
It was disputed and charged back as they provided no documentation about nature of $500. They don't have the $500. They started writing collection letters after it was charged back to them. They are still not saying what it's for. The letters were from 2 different CSRs, and now from the manager of the collection dept.
UPDATE: I sent a validation request. They signed on 8/8 and sent 2 letters after that. The last one threatens an outside collection agency or lawsuit. They are in Texas which requires a surety bond but no licensing so that avenue is closed + I don't know if they'd have to be licensed in the first place as they are only a collection dept.
