Legal Question in Business Law in Massachusetts

My friend was called by a company who offered to sell her existing time share points to those who would want to stay at her time share and required her to send a check of $500.00 for adertising and other "required" fees and said they would be sending her a contract she should sign. She sent the check for $500.00 and then was told by those she discussed the transaction with that she might have been scammed. She called the Better Business Bureau, and they had never heard of the company and told her to be cautious and suggested she call the Consumer Protection Agency. When she called there, they said the company had applied to be recognized there but the application had not gone through. She stopped payment on her check as she was leary of the situation. They did send her the contract, but she didn't sign it. Now she received a call from them saying the check bounced, and they want a $75.00 payment for the bouncing of the check. She, being a very honest personm doesn't know whether to call them back and explain what happened in case they are legit or just not deal with them anymore because they could be scamming her. What can they do to her if they are legit as far as collecting the $75.00????


Asked on 2/19/10, 8:52 am

1 Answer from Attorneys
Jonas Jacobson Law Offices of Jonas Jacobson

They could take her to small claims court and try and collect the check. They might alternatively argue that she in fact made the contract, and that, therefore, she can be held to it, or required to pay them to the extent it would have benefited them. If all they stand to make is $500, then they could file in small claims court for that amount (with the help of an attorney).

If they have not filed a foreign registration in Massachusetts, then they can't do anything, because so filing is a condition precedent to corporate action by a foreign corporation in Massachusetts.

They might also sell her claim to a debt collector, report her to a collection agency.

They might also just do nothing, since $75.00 is not really that much money. There is really NO TELLING what they might do.

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Answered on 2/24/10, 9:58 am


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