Legal Question in Consumer Law in Utah

Collection of nonrendered Services

I was recently notified by a collection agency I would be responsible for paying for services on a ''product'' (classes) I did not use. I had signed a contract and paid, in full, an agency, to take classes to enchance my career. Terms of the agreement were attending classes after payment. Shortly after agreeing to take the classes, I moved out of the area and was unable to complete my side of the agreement. I contacted the Rep, who did not return my calls. The amount was signficant so I stopped payment on on the checks. I was contacted by the agency and instructed to pay the fees. I explained I was unable to attend the classes. The Agency Rep. explained, regardless of my situation, a contract I had signed explicitely stated ''no refunds.'' That occured in September of 2002. I had not heard from the agency until being noptified by the colleciton agency that I owed a huge sum, one week ago (February, 2003).

Clearly I am in breach of the contract, but feel I have been treated very unfairly. Do I have a legal right to not pay for soemthing I could not use? What about the contract, is it binding in such situations?


Asked on 2/19/03, 4:13 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Collection of nonrendered Services

The terms of the contract are enforceable if they are reasonable. An attorney would have to read the contract to make that determination. More likely than not you will have to pay for the classes even though you did not attend, unless there is something in the contract which gives you an excuse. Keep trying to contact the school or seller of the product to see if they will work something out with you.

You can also sometimes negotiate a settlement with the collection agency, especially if you threaten bankruptcy. Collection agencies are regulated through the Fair Debt Collection Practices Act, which controls their demeanor, times of calls, and what they must and cannot do and say. Keep records of all of your contacts.

Good luck.

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Answered on 2/19/03, 6:49 pm


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