Legal Question in Credit and Debt Law in Utah

Paid for NSF check still sent to collections?

My daughter is college student and wrote a check for gas 8/16/2005. It was returned for non-sufficient funds. My husband tried for several weeks to contact the owner. The owner would not respond. He paid the cashier with cash the amount of the check and the twenty dollar service charge, which was store policy. (The cashier would not allow another check to be issued, it had to be cash.) She signed a document with Sinclair letter head in Sept 2005, stating the amount paid. The owner sent it to collections under Bonanza in Feb 2006. The stores name in the phonebook is Bonanza-Sinclair. The collection agency says this only proves we paid Sinclair not Bonanza. The collection agency will not drop the matter until they are paid again or the owner varifies the letter. He does not respond to any communication. If my daughter had thirty day to respond to the charges, why does the collection agency not give give him the same time frame and when he does not repsond drop the claim? Do I tell her to pay again or fight it in small claims court? What do we do if this ruins her credit?


Asked on 5/23/06, 11:51 am

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

Re: Paid for NSF check still sent to collections?

Go to the store owner and get the owner to recall the debt, take with the receipt. Notify the collection company that you have the receipt, and also note the address of the store. This may be a bit of a hassle, but you should persevere. It should not damage your daughter's credit if you continue to work on this. Also have your daughter send a letter to the collection company that states not to contact her by phone; and that she contests the debt and ask for proof of the debt. The collection company should return a copy of the check which was written, which you can use to resolve with the store manager. The mistake that was made was that you did not get the original check back. Good luck.

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Answered on 5/23/06, 3:43 pm


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