Legal Question in Credit and Debt Law in Virginia
Civil judgment
I worked for a company as a collections manager. I filed warrant in debt cases with district court if our third-party collection company was unsuccessful collecting the debt on our owners. this was for yearly maintenance fees for timeshare owners. The debt would include the base fee, $25 late charge (per yr), 18% annual interest and the collection fee of 30%. The collection fee was what the 3rd party would receive IF they where to collect. I was directed to include this in the warrant in debt. Was this legal? Also, my former employer continued to charge 18% interest per yr even though the court awarded only 6% per yr. This amount reflected on collection letters and annual invoices. I would no longer--name removed--considered a ''whistleblower'' as I was just fired. Who would I contact to investigate these acts? FYI - I also believe I was wrongfully discharged as I had a near spotless employee file. No reason given other than ''reorganization'' of my department. Found out today they replaced me with my assistant (a woman). After 13 years, (8 yrs as collection manager) I was let go, just like that. I don't understand except I guess my boss or her boss did not like me (personality conflict???)
Thanks...
2 Answers from Attorneys
Re: Civil judgment
I have never heard of a 30% collection fee charged by a layperson. I suppose the Commonwealth's Attorney and Department of Labor would be places to start to determine if any crimes have been committed. You should consult an attorney if you want to pursue a potential wrongful termination suit as well as the other issues you raise, and before you do anything else.
Re: Civil judgment
Well, let me answer in the following context:
First, Virginia is a very hard State for employees. It leans towards business and employers on such matters. So on ANY set of facts, you would have a tough fight uphill for a wrongful discharge claim (unless you had a CONTRACT that they clearly violated).
Second, I would imagine that there is going to be a lot of work for debt collectors right now, so I hope you can find something else.
Third, it is one thing to ASK the Court for what you want, it is another thing for the Court to agree and award you what you want.
It would normally be the Court's role to review your paperwork and determine which items are authorized under the contract and under the law or not.
However, it is true that collection agencies routinely INVENT "fees" out of thin air, and try to collect them. I have seen this many times.
Unless the contract with the consumer AGREES to pay collection costs, then these cannot be added.
The judge ought to review whether the charges are valid before entering judgment.
Unfortunately, because people usually default, no one may look at the validity of the amounts.
It would be wrong, quite obviously, to lie to the Court or misrepresent the situation, to get the Court to agree.
If the underlying contract with the consumer does not AGREE to pay the collection fees, the $25 late fee, and the 18% interest, then this could be a frivolous lawsuit under Va. Code 8.01-271.1
And it may also (surely does) violate the Federal Fair Debt Collections Practices Act, which can have much more serious consequences. I don't know if the FDCPA has any whistleblower protection, but again Virginia is not a friendly state for wrongful discharge claims.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
