Tuition Bill Sent to Collections Even Though Balance Was Paid to the School

[LedaXI]

My question involves collection proceedings in the State of: Pennsylvania

I took a summer class at a college during the summer of 2011. I asked if they had a payment plan, at the time they told me no. I didn't have the ability to pay $1900 at the time. I do understand that this part is my fault. I put it off until I had the ability to pay them all the money I owed. I was unaware until this month that in January, the account was transferred to a collections agency. I sent a request for my transcripts after paying the school and later received a phone call saying they were unable to process it because I still had an outstanding balance of over $500 and that I would need to contact this outside company. I called the outside company to confirm this, and they said that they would be able to make a payment plan over the next four months, but I still wouldn't be able to get my transcripts until the entire balance is paid off. I'm concerned about this because I paid the school the principle balance that they were owed and the amount that I owe this outside company (more than 25%, which I do believe is illegal in Pennsylvania), is still counting as an outstanding balance. Can they legally withhold my transcripts since I've already paid this balance? When they transferred my account, I don't believe I should have even been able to pay the school at all. That account should have been closed and I should only have been able to deal with the collections agency, but I was still able to log into that account and pay them. I didn't even talk to these people until I found out that the account was supposedly transferred. Can I get legal representation to force them to hand over my transcripts since I've technically paid them what I originally owed them? And since it was just tuition and not a student loan where nothing was signed, can this company even charge me this outrageous amount for their services that weren't even rendered?

[jk]

there is a difference between a collection agency that is hired to collect a debt for a client and a collection agency that purchases debts and attempts to collect on them. If the first, the school still owns the debt and as such, have every right to be involved in the situation. If the latter, the school no longer has anything to do with the debt and have no right to deal with the debtor concerning the debt.

I'm concerned about this because I paid the school the principle balance that they were owed and the amount that I owe this outside company (more than 25%, which I do believe is illegal in Pennsylvania), is still counting as an outstanding balance.

what do you mean: you paid the school the principle balance owed? Either you have paid the entire debt on your account or you didn't.

[LedaXI]

The initial balance was $1,982. The rest of the debt, somewhere over $2500, was added one after the school started dealing with this collections agency. I paid the school the original balance of $1,982, which is what I still believed I owed to them at the time when I was unaware of this other company's involvement.

[Mr. Knowitall]

If you owe late fees, penalties and/or collection costs under your contract, then that's what you agreed when you incurred the debt and your debt won't be fully satisfied until you pay them.