Legal Question in Credit and Debt Law in Nevada

Re: Made Payments Sent to Collection Agency

There is no law on when a creditor may employ a debt collector.

The debt collector may not collect more than is owed. If you have a written agreement stating your payment plan, then it would violate the Fair Credit Reporting Act if they report you as late.

If the debt collector misrepresents anything or demands more money than you owe, then it is a violation of the Fair Debt Collection Practices Act.

You should just pay the creditor and write the debt collector a letter disputing the alleged debt as you have already paid the creditor. You need to keep copies of all payments and correspondence because a debt collector may try to collect again.

Also the debt collector has to send you a letter within 5 days of the initial contact informing you of the amount owed and your right to dispute the debt. If you do not receive a letter informing you of the amount of the debt, that is a violation of the Fair Debt Collection Practices Act.

If there are violations, you need to contact an attorney to file a lawsuit. The act provides for attorney fees, so most attorneys will take the case with only a payment for the filing fee. A debtor receives statutory damages of 100 to $1000 plus any actual damages incurred.

I charge a $45 initial consultation fee to review all paperwork and learn the facts to make sure that there is a good claim. If I accept a case, I require a cost deposit of $250, which pays for the filing fee and service. These are refunded when the case settles.