Legal Question in Civil Litigation in Virginia
Collection Company refused my payment
To make a long story shorter, here's what is happening.
We forgot to pay a bill for Child care. It was 532.00. It was sent to collections and their charges were added the total was $858.00. We made an agreement with the collection company to pay half $429.00 on 1/24/05. and the other half two weeks later. We didn't have all of the money on the 24th, so I called them and told them. They said it would be fine to send it the following week. I did. They cashed the check. Then I didnt have all of the money the next due date. I called, they said its ok, send it then next week. I did. I got a phone call at 11:30 Am from the collection company stating that I was in Default of our agreement and they were not accepting my check. She said I had to come to their office before 12.00 that same day (a 1/2 hour ) with a certified check or she was sending it to the attorney. I couldnt make that deadline and she refused to change the time. I went to court today for the judgement and the judge stated we would have to go to a hearing on 5/12/05. The attorney for Their side wanted to settle out of court but the judge said that if I didnt think I had to pay the court costs, and interest that has been accumulating,court is the answer.
2 Answers from Attorneys
Re: Collection Company refused my payment
They had a right to do as they did, but the question as to whether they have a right to recover collection costs (legal fees etc) and interest is a question of contract. You need to review the agreement and see what it says. You may be able to stop interest at least on the partial amount that you did tender from the date that you tendered it.
Re: Collection Company refused my payment
First, you need to look very carefully at any contract that you signed. Does it have anything in which you agree to pay attorney's fees or collection costs?
There is NO authority for the collection agency to add any fees unless you agreed in the contract to pay for "costs of collection" or something like that (NOT just attorney's fees).
In court, again, the attorney cannot add on any fee unless you agreed to that in the contract.
Obviously you are going to end up paying the actual cost of the bill. The question is whether they can tack on anything else.
In general, there is no requirement for someone to go through any steps before filing suit. They can file suit the day after the bill is over due, only by 1 day.
However, if they are trying to say that it was "necessary" for them to file suit, so as to ask for costs of collection or court fees, they must prove (although it is rarely addressed because it is rarely ever an issue) that (1) demand was made for payment, and (2) You refused to pay.
In your case, you would have documentation I hope to prove that you offered payment and THEY refused to accept your money.
As a result, the condition for filing suit (demand for you to pay was made, and you refused to pay), has not been satisfied, so that no court costs or other fees are appropriate.
The judge would NOT care about this with regard to you paying the original bill. But it could (if the judge understands it) relieve you of any other charges. If you owe the original bill, the judge won't care about anything else. But if you focus on the other fees as being totally unnecessary, and untrue, then the judge might let you go on the other fees.
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