A twist on "alleged" debt from 2nd CA

[treehugger1]

I had a creditor send a debt to a CA that was determined to be operting outside of the registration laws of my state. The AG/SOS requested they cease and desist.

This debt was then transfered to a local CA who has dunned for approximately $11K. The OC debt was approximately $7K. It took me a couple of days to figure out that the first CA had charged the OC approximately $4K in collection charges, and apparently the new CA is attempting to collect both the original and alleged collection costs of 4K. I don't think this is legal.

I'll DV the second CA in a week or two and clearly dispute this debt.

Any other thoughts?

[BROKENN]

Hi, What's a CA, OC and DV?

I had a judgement that went from $4K original loan to $12K instantly on the paper. All was for legal fees and interest.

[magyar123]

How old is this item - within your state's SOL timeframe?

[treehugger1]

Sorry about that: OC Original Creditor, CA Collection Agency, DV Debt Validation

The alleged debt is not that old. There is no judgment for this debt. As a result, the original debt plus accrued interest is the only debt that should be there.

I looked through the FDCPA a few minutes ago, and found the following.

The FDCPA Section 807 (2) states it is a violation to falsely represent "the character, amount, or legal status of any debt; or false representation of any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt.

I'll wait for the DV to be returned and if the additional amount remains on their response, then it seems they have violated both (A) and (B) of Section 807.

[BROKENN]

Thanks! I learned somethin' I searched for the acronyms and millions of posts came up! Your reply made it simple.

[GoingDown]

The Collection Agencies will often tack on huge amounts of interest and fees. Simply send them a letter by certified mail disputing those fees and interest and keep a copy of that letter and the certified mail receipt. If they sue you, take a copy of that letter and the certified mail receipt with you to court and tell the judge that you disputed it and you think those fees are too high, and most likely the judge will end up lowering them to the legal limit for your state.

If you eventually plan on filing BK, it doesn't really matter anyways, because it will all be discharged.