Legal Question in Credit and Debt Law in Maryland

Re: Company failure to correctly process credit card charge

What is the amount claimed? This drives much of your decision.

Collection agencies are accountable to standards in law nonetheless abuses continue. If the debt is no longer legally enforceable then you should take action to rectify this matter.

The statute of limitations may have been suspended unknown to you. Where a judgment issued the debt may be enforceable through renewal. Despite this the debt may be worked out.

Not attending to this matter may cause injury to your credit score and could occasion costs accordingly.

If you desire to resolve this matter contact me at (410) 750-2567. Joe Holthaus

Re: Company failure to correctly process credit card charge

It would be difficult for a moving company to recover in court on the debt since payment was due over 3 years ago. However, there are several exceptions to the statute of limitations (one must bring the cause of action within three years of the date on which they could first have brought it). While the information you provided does not lead me to believe that any of those exceptions would apply, before such a determination is made all the facts must be examined closely.

As for the collection agency actually collecting on such a debt, they probably do. If the person knows that the monies are owed but was just waiting to find out where to send the check, they will not likely fight the collection efforts. Another consideration is the amount that is being collected. If it is a small amount, it is often less hastle to just pay it than to worry about when a lawsuit will be filed or to risk that the information will appear on your credit report. Additionally, the collection agencies can be very convincing in their pitch that you have an obligation to pay the debt no matter how old it is. In point of fact, you do still have an obligation to pay it is just not one that the Courts will enforce. Few people take the time to contact an attorney even though they can get free advise from a number of sources, including this one.

All of these things should be taken into consideration before you decide whether to pay the collection agency or not. You should be able to ask to collection agency to have the moving company send you the documentation regarding the debt (which should include all invoices and all payments they have recorded). You may then want to contact your credit card company and see if they have your charge records from that timeframe or contact your bank to see if they still have copies of a canceled check. While these inquiries may cost you a few dollars, you may be able to establish that the bill was paid. If you can match up all of the invoices with a corresponding payment, the moving company and the collection agency will likely go away quietly. If not, you may be able to convince them in a letter that they cannot prevail in court (don't forget to mention the statute of limitations and the fact that the moving company was negligent in processing the bills and has admitted to that negligence). I would have an attorney review it before sending it. Better yet, hire an attorney to write the letter on his/her letterhead. You should be able to find a firm to do that for around $100. If you choose not to pay it, though, be prepared to be named as a defendant in a lawsuit.