|
I opened a checking account with a bank and ran up a slew of
non-sufficient fund charges in a short period of time. This happened
on more than one occasion, unfortunately. My total debt with the bank
was around $600 with the collection agency tacking on another $50 fee.
The bank account has been closed for over 15 months now.
I received a letter today from the collection agency stating that if I
did not remit payment within 10 days that all future contact will be
with "the attorney."
The bank would not settle with me when I closed the account. Needless
to say, the $30 they charged everytime they covered a check of mine was
hard to swallow. Its still hard to swallow now even as I am more
financially secure.
I am looking for some advice: 1) Should I worry about this "attorney"
threat?
2) What are the chances they sue me? The collection agency is in a
different state than I am in.
3) The collection agency does not even have my new address (the mail
was forwarded to me) nor do they have my phone number. The only
correspence I get from them is via US mail. If I ignore this letter,
what happens next? The bank is a rather large bank, nationwide chain.
I'm surprised its taken 15 months to get this type of letter, but
nonetheless, I don't want my credit smeared. What should I do?
I'll check back and answer any questions you may have. Thanks and I
appreciate any advice.
Amp
|
| |
| |
In article <l1in21hsgp7pci6foc70ch6teoln4vn3sj@4ax.com>,
"Amp" <humblespadesp4u@yahoo.com> wrote:
The bank would not settle with me when I closed the account. Needless
to say, the $30 they charged everytime they covered a check of mine was
hard to swallow. Its still hard to swallow now even as I am more
financially secure.
Why should the bank settle? You issued the checks, they paid
the checks. You owe the money. You knew the overdraft rules,
so why are the fees hard to swallow?
I am looking for some advice: 1) Should I worry about this "attorney"
threat?
You are free to worry or not worry. That does not affect
the behavior of the collection agency. The fact is that the
collection agency is either being paid to do a job, in which
case they will do that job, or they bought the account, and
they need to recover their investment. You can be assured
that you will hear from them again.
2) What are the chances they sue me? The collection agency is in a
different state than I am in.
If you don't pay, the chances are pretty high. This sounds
like an open and shut case. They should be able to get a
judgment pretty easy. The real question is what are their
chances of collecting. If you work, they may be able to
garnish your wages. That would probably be a worst case
scenario for what could happen.
3) The collection agency does not even have my new address (the mail
was forwarded to me) nor do they have my phone number. The only
correspence I get from them is via US mail. If I ignore this letter,
what happens next? The bank is a rather large bank, nationwide chain.
Your address and phone number is easy enough to find. If the
mail was forwarded by the post office, they can simply ask
the post office for your new address, assuming that the
post office didn't notify them already.
I'm surprised its taken 15 months to get this type of letter, but
nonetheless, I don't want my credit smeared. What should I do?
There is no surprise. These things take time to work themselves
out. It isn't uncommon for a bank to wait 6 months or a year
to turn over a group of accounts to collections.
Your credit has already been smeared when your account went
to collections.
Your best bet is to pay up. The court case will add legal
fees and collection costs plus back interest to your bill,
and you can end up getting your paycheck garnished. A
judgment stays on your record forever, and is printed on
your credit report for at least 10 years.
You can try offering the collection agency a settlement. If
you do that, get it in writing, and pay by money order. Don't
give them your bank information--some will try to illegally
suck your account dry.
-john-
--
======================================================================
John A. Weeks III 952-432-2708 john@johnweeks.com
Newave Communications http://www.johnweeks.com
======================================================================
|
| |
| |
"Amp" <humblespadesp4u@yahoo.com> wrote in message
(has been contacted by collection agency re: 600 in unpaid bank charges for
NSF checks)
I'll check back and answer any questions you may have. Thanks and I
appreciate any advice.
When you signed a contract to open the account, were you made aware of the
charges for returned checks? If so, why are you refusing to pay them,
especially now that you are 'more financially secure'?
|
| |
| |
The bank would not settle with me when I closed the account. Needless
to say, the $30 they charged everytime they covered a check of mine was
hard to swallow. Its still hard to swallow now even as I am more
financially secure.
It clearly wasn't hard to swallow when you opened the account and the fees
were disclosed to you. It's hard to be sympathetic when the known and
expected fees are actually enforced according to your agreement.
I am looking for some advice: 1) Should I worry about this "attorney"
threat?
Only if you don't have a problem with having your debt increased.
2) What are the chances they sue me? The collection agency is in a
different state than I am in.
Perhaps, but do they have a local branch, or an affiliation agreement with a
local organization, or the right to subrogate to another agency? Or, if the
agency has purchased the debt, perhaps they'll simply sell it to a local
collector.
3) The collection agency does not even have my new address (the mail
was forwarded to me) nor do they have my phone number. The only
correspence I get from them is via US mail. If I ignore this letter,
what happens next?
They'll soon have your new address and pnone number, because you will apply
for credit somewhere (such as ordering a phone line or electrical service),
or even apply for employment.
I'm surprised its taken 15 months to get this type of letter, but
nonetheless, I don't want my credit smeared. What should I do?
Pay the bill. You agreed to those charges when you signed up for the
account. Remember, a debt does not go away with time, only the legal right
to enforce collection. The bank can correctly list you as a debtor in its
own records fifty years from now if the bill remains unpaid, even if the
debt was discharged in bankruptcy. If they sell the debt, it effectively
becomes a new debt for reporting purposes, because the creditor is
different. This debt can haunt you forever if you ignore it.
|
| |
| |
Amp wrote:
[overdraft charge and finance charges total $650. Collection company now
saying it'll turn over to attorney]
I am looking for some advice: 1) Should I worry about this "attorney"
threat?
Worrying is internal so do it if that's your nature. If you should take
this seriously, well, I would.
2) What are the chances they sue me? The collection agency is in a
different state than I am in.
The attorney will be local and his 'chances' of suing you are high.
There are attorneys who do nothing but collections. They are fixtures in
court.
3) The collection agency does not even have my new address (the mail
was forwarded to me) nor do they have my phone number. The only
correspence I get from them is via US mail. If I ignore this letter,
what happens next? The bank is a rather large bank, nationwide chain.
I'm surprised its taken 15 months to get this type of letter, but
nonetheless, I don't want my credit smeared. What should I do?
Pay if you don't want your credit 'smeared'. If you do go to court on
this, you also may assessed attorney fees. That's the REAL reason
attorneys play this game. You may find yourself with a judgement against
you in the thousands. I say 'may' because it also may come to nothing,
but I'd not count on it.
I'll check back and answer any questions you may have. Thanks and I
appreciate any advice.
Look, you agreed to those charges. You bounced the checks. Take your
medicine like a big boy and remember not to do it again.
-paul
ianal
|
| |
| |
Your contract with the bank (account terms) stated the charges that
would be made if you had insufficient funds. You admit to numerous
occasions, and the bank charged you according to the agreement.
Now, the bank has turned over the amount to collections, and it's their
job to get what they can from you. They will likely go to court to
file a claim against you. You will also likely be reported to all
credit reporting agencies.
If it's worth $650 to you to clear the item, I suggest you contact the
collection agency and arrange terms of payment.
If you do nothing, you'll at least get a ding on your credit. It won't
matter if you've moved; the bank undoubtedly supplied the collection
agency with your name and SSN. That's plenty enough to get on your
reports.
|
| |
| |
In article <l1in21hsgp7pci6foc70ch6teoln4vn3sj@4ax.com>,
"Amp" <humblespadesp4u@yahoo.com> wrote:
[collection agency threatens legal action to collect $650 owed a bank
for bounced checks]
What should I do?
Pay the $650.
--
D.F. Manno
dfm2a3l0t2@spymac.com
"The work goes on, the cause endures, the hope still lives and the dream
will never die."
|
| |
| |
In article <buev211a66bo6kqn26riioa4sbthndsous@4ax.com>,
pjhartman@gmail.com <pjhartman@gmail.com> wrote:
Your contract with the bank (account terms) stated the charges that
would be made if you had insufficient funds. You admit to numerous
occasions, and the bank charged you according to the agreement.
Everybody is saying this but I don't see anything in the
original article about a contract listing a $30 fee per
returned check. My bank has many undisclosed fees -- fees
that are neither in the account agreement nor on the list
of fees on the bank's web site. It's up to the computer,
says the customer service line, and that's what counts
and I should be happy they don't charge me more.
If you do nothing, you'll at least get a ding on your credit. It won't
matter if you've moved; the bank undoubtedly supplied the collection
agency with your name and SSN. That's plenty enough to get on your
reports.
The situation may also lead to being blacklisted from opening
a bank account for the next seven years.
--
John Carr (jfc@mit.edu)
|
| |
| |
|
