I paid you already, leave my credit alone!

May 1, 2007 9:18 PM

Utility Credit Issue. At the end of March I terminated a natural gas account. I've been sent to a collection agency. The problem? Well, a couple. Let's start with I paid it.

March 27: gas company disconnects service and supposedly mails last bill to my new address.

April 13: I hadn't received a bill and call to find out if/when/where they sent it. Find out they sent it on March 27 (I sincerely doubt this, but OK). Agent informs me the payment is due on the 18th. (weird - my bill date is usually the 27 and my due date is usually the 21st of the following month, but ok). Agent offers to mail another copy to my new address. I decline and just ask for the amount due and the address to mail it to.

April 14: (Saturday) I drop payment in the mailbox, but I've missed the "last pickup" time. Crap.

April 16: Postal holiday in my area (WTF?) so that payment doesn't move until Tuesday April 17.

April 23: Payment still hasn't cleared my bank. I get worried and call the gas company. I'm told that they haven't received it. I assure the agent that I mailed it, I explain the date/time snafu and give her the check number. I ask her to make a special note that it is on it's way. She claims to a) do so and b) that they don't place anything in collections for 30 days.

April 24: Payment clears my bank. I look at the scan of the check and it appears that either the gas company or their bank processed it on April 20.

April 30: I receive a notice from a collection company stating that my gas company account has been placed with them for collection. What the F*&$?

a. Aren't there rules about how quickly an account can be placed into collection?

b. Any idea why the due date was shortened?

c. What is my recourse? I am uber careful about my credit and this has really upset me. I don't believe a dang thing these people tell me now and I want to protect my credit rating the best I can.

Note: Yes, I know that *technically* I WAS late, but um, two days??? Also, this is in the states.

posted by anonymous to Work & Money (6 answers total)

Uh, call the collection agency, tell them to FOAD. Simple.

Alternatively, if you want to make some money, send the collection agency a certified letter stating that you would like them to verify you owe the debt in accordance with the FDCPA. When they send you back "verification" that doesn't check out (because you don't owe the gas company anything), sue them in small claims and get your $1000.

Bonus points if you tell them to only correspond with you by mail and they keep calling. That's another $1000 per violation. Keep good records, and enjoy your windfall! :)

See creditboards.com for information on dealing with collection agency sleaze.
posted by wierdo at 9:33 PM on May 1, 2007

Oh, and if they put it on your report before they verify, that's another $1000. They have to give you 30 days to respond to the dunning letter, and they only have 30 days to verify or they have to FOAD.
posted by wierdo at 9:34 PM on May 1, 2007

I had an experience within the last few years with a phone company, where a relative who had been maintaining phone service in my name ceased to pay the bill. When I discovered this, and my connection to the situation, I immediately contacted the phone company and asked to have the bill sent to me. However, the next communication I received was from a collection agent.

Long story short, I was able to resolve it with the original creditor and there was no adverse effect to my credit.

In your case, where the bill has actually been paid, I think you're in even better shape. Your bank should be able to provide both the original creditor and the collection agent with a copy of your cancelled check. This may not even be necessary, if you contact the original creditor to confirm receipt of payment and ask them to retract the account from their collections agency or department.

Having worked in the collections department of an auto finance company, I can attest to the fact that many accounts would drop into my lap that had, in fact, already been paid and closed. Sometimes corporate bureaucracy doesn't move as fast as the postal and banking industries.
posted by padraigin at 11:42 PM on May 1, 2007

Uh, call the collection agency, tell them to FOAD. Simple.

NEVER. DEAL. WITH. A. COLLECTION. AGENCY. ON. THE. PHONE.

All you need to do here is write back to the CA and request they validate the debt. At that point they MUST do that before they conduct any additional collections activity. Make sure you include in the request that it's inconvenient for you to take calls on the matter and to limit their contact with you to writing.

Creditboards is a good resources, though may be overkill for your situation.
posted by phearlez at 11:24 AM on May 2, 2007

I work for a gas company, and this seems extremely weird. That's way too soon for an account to go to collection. Around here, months go by in which people don't pay their bills but still have service and don't go to collection. You may have received the collection letter due to an error (someone else with your name, account number off by one digit, etc.). You need to call the collection agency and make sure they're really talking about your bill (same amount of money, correct service address, etc.). Then tell them the bill is paid, and you have a cancelled check. Do the same with the gas company. If you have any problems with the gas company, call their media relations person, whose name and phone number should be on their web site. Don't tell them I said to do this!
posted by Joleta at 11:25 AM on May 2, 2007

DO NOT TALK TO THE COLLECTIONS AGENCY; there is nothing to say to them. Talk to the Gas Company and ask them why you've been refered to collections since you've paid and your bank confirms that the payment cleared. Tardiness of payment is completely irrelevant, because it's paid. The End. If there is a late fee it is between you and the Gas Company, make it clear that if this is the case you are perfectly willing to pay a reasonable late charge.

Make them call off collections. Remember to keep smiling when you are on the phone because it will keep you calm and make you sound reasonable. Don't be afraid to ask for a supervisor. Be polite. I've been there, but with Ameritech.
posted by ilsa at 11:26 AM on May 2, 2007