Legal Question in Credit and Debt Law in Minnesota

In Dec. 2008 I joined the military. Not long after I met the man who is now my husband and father of my child. After we found out I was pregnant we decided, since he was in the army also, that I should get out in order to be a stay at home mom so our son didn't have to be raised by a day care. So in April 2010 I separated from the military due to pregnancy with my commander telling me that I may have to repay the 20K bonus that I received when I enlisted. I both understood, and was fine with this fact. However, he said there was also a way that he could request that my bonus not be recouped due to hardship. We didn't go into much detail about it, but before I left I updated all of my contact info. (address, phone number, husbands phone number, and civilian e-mail) with my unit so that they could reach me if they needed to. (I have even talked to them on my cell phone and received mail from them at this address since then) That was the last I ever heard about it. So after a year of not hearing from them I naturally (and stupidly) assumed that my commander had done what he had mentioned about requesting that my bonus not be recouped.

Well on Friday right after my husband had gotten home from work his phone rings and the person on the other line is asking for me by my maiden name and won't tell him what its about. I get on the phone and find out it is a debt collector from CBE Group attempting to collect over $20,300. Which is more then my total bonus was to begin with. After failed attempts to collect our financial info and account information the conversation ends. I then go to check my credit report and all three state that I only owe $15,917. Army regulations state that only the unearned portion of the bonus can be recouped. Since I only completed 1 1/2 yrs of my contract which equals out to a little less then $5,000, this number seems fair and accurate to me, but what is this extra money they are asking for. I don't believe its the Army adding the money because when they turned the debt over to the creditors last month the balance was still 15,917 which was reflected on my credit report. If it is the army however is there a way to have the interest removed since I never received any notification and in fact did everything I could before I left to make sure they had my contact info?

If it is the creditor can they do this since the Fair Debt Collection Practices Act states that creditors can not add interest to a debt unless it was agreed upon in the original contract? I have checked my contract over and over and there is nothing about interests in there. Only that the unearned portion of my bonus will be recouped. Which is fine I owe that money but not the 5K that has been added to it since last month.

Also, is there a way to have the missed payments removed from my credit, since again I never received a notice, and had given my unit my contact info? I also find it very strange what the creditors had my husbands cell phone number, but neither the creditors or the army apparently had my address when in fact I updated both pieces of information not only at the same time and on the same sheet of paper, but also had recieved contact from my old unit at these points of contact after i left. (Still have voicemails) If the army lost, misplaced or failed to update my information in their systems should I still be held responsible for a mistake that was not mine?

I have already drafted a letter stating that I am disputing the difference in the amounts and to request validation of debt from the creditors and I intend to call my old unit as soon as the weekend is over to see if they have any information, explanations, or advice. I know this is really long and I hope it all made sense, but I was wondering if anyone else had any ideas, information, or advice for me. It would be very appreciated. Thank you.

1 Answer from Attorneys

Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Minnesota

Looking for something else?