Legal Question in Credit and Debt Law in North Dakota
Collection Agencies
I have written 2 bad checks in my life. The most recent was a simple accident where the money was deposited, by myself, into the wrong account. Anyway I wrote the check and it bounced. I was notified by a collection agency to pay the value of the check as well as a fee. I simply looked at the amount due, on the company where I bounced the check's letterhead, and went there to pay the balance. I went and payed the bill which they gladly accepted, by giving me a receipt. I assumed it was over with until I continued to get calls from the collection agency saying I had to pay them, they owned the check and the company shouldn't have done what it did. My response was that it is their client, they were paid, I have proof and they should take it up with them. They told me to talk to the company and have them send the money, I attempted twice to do that and they did nothing. I feel that it is now out of my hands, but they continue to call and write threatening letters. Is there any recourse I have against them if my credit is damaged down the road, is there anything I can do about the calls and letters?
2 Answers from Attorneys
Re: Collection Agencies
This does seem like the kind of question that should have an "answer" because the situation is so familiar.
I must agree with Mr. Williams, though - it is not a simple issue.
If you will forgive me for sounding like a lawyer, the problem is that there are two "debts" now, one on the original purchae, and one on the check. Unfortunately for you, the two have become seprated.
In order to know what to advise for your situation, I would have to know a lot of details about the relationship between the company and the collection agency. Did the agency pay for the check? is the company allowed to collect? what happens when the company receives money?" what was supposed to happen if the collection agency received the money?
It seems there would be two possibilities. If the agency took the check on behalf of the company, and was supposed to pay the company for the check after deducting a commission, then you would be more protected. If, however, the collection agency bought the check, then the company had no right to collect.
Of course, you have no way of knowing what the arragement was, since it does not concern you. As a practical matter, write (registered mail, return receipt requested) to both the company and the agency, demanding that they straighten the matter out between themselves - of course, detail your payment, with a copy of the receipt.
If you get sued by the agency, you will have to do what is called "implead" the company - send a copy of the compalint to the company, with your own complaint against the company, saying in effect: If I lose to the agency and teh court orders me to pay the agency, then it will be your fault, and you must reimburse me for what I have to pay.
There may be some details in your state law which would affect the case. I therefore strongly urge you to consult with a local lawyer. If you cannot afford one, try Legal Aid. Most bar associations also have panels of lawyers willing tow ork for reduced fees.
Godd luck!
Re: Collection Agencies
To be honest, I've never determined whether collection
agencies have the right to collect after I've paid the
primary creditor, or whether the creditor and the agency
can transfer debt like that. I'm being honest about that.
However, I thought you'd be interested to hear that I do
the same thing; never liking collection agencies in the
first place, I always pay my debts to the people I buy services
from and I always get the collection agencies ticked off
by doing it. Nothing's happened to me yet, as far as I
know.
Would you please tell me what you ultimately find out,
or what other attorneys tell you if any respond to you?
You can e-mail me at [email protected] or phone me up
at (617) 527-0050.
Thanks in advance!
Stuart Williams
Law Offices of Stuart J. Williams
21 Walter St.
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