Legal Question in Credit and Debt Law in Missouri
Remaining relocation fees
Entered into a repayment agreement with a company for relocation fees. Within this agreement the terms were to have the total amount deducted from last pay check. Received a letter 6 months later stating that the total balance was not deducted and I am responsible for the remaining balance. I'm I obligated to pay the remaining balance due to failure on their part to comply with the agreement?
1 Answer from Attorneys
Re: Remaining relocation fees
They can demand it, and you can certainly oppose it. If they failed to deduct the amount, you could certainly argue that you changed position in reliance on their not having deducted the money. It's difficult to say which way a court would go on it. If the amount of money is not above $3,000, they could sue you in small claims court and potentially recover. On the other hand, if it's more than that, they may not want to pay an attorney to try to recover it.
You might suggest offering them half the money and see if they would settle with you. Of course, you're always entitled to make them sue you to collect it and assert your defenses under the agreement. Settling would have less an impact on your credit rating, but if there is an issue of principle here, you may not want to do that.
It might be advisable to have an attorney look over the agreement and offer you some advice about what to do.
Good luck