Contractor Refuses to Follow Bank's Policy to Get Paid

[jwells52]

My question involves collection proceedings in the State of: California

This involves a damage claim where the bank holds the mortgage and the damage claim monies. The work ended just two weeks ago, however, I received a call from the contractor's manager that they were going to send me to collection if I didn't submit to them a check. The Bank is requiring that this company submit a actual contract, not a serviceagreement with both our signatures on it. Is there a time frame inwhich a company can start collection proceedings? Do they have to show an attempt to collect before starting collections?

[Mr. Knowitall]

If you owe the money and don't pay in a timely manner, the company to whom you owe money can immediately start trying to collect it.

They are attempting to collect: They have told you that you owe then $X and that they want you to pay what you owe.

When you asked why they won't provide a contract consistent with what your bank expects, what did they say? (Incidentally, that requirement should have been imposed up-front, not after-the-fact when you've already incurred the debt based upon the service agreement.)

[jwells52]

This company has authorization to speak to the bank. The company also knew that the payment was coming from the bank. This bank has been terrible about obtaining correct information. The contractor and I were both on the phone with the bank when they went over everything sent in and said everthing was ok and we were both told by the bank rep, that since the company was dealing with medigation only, he would be paid in full with a completed Lien Release which we did. Now the bank is saying they need more signatures. I've been going through this misinformation from my mortgage company since the beginning. This company also knew what I was going through as far as the bank was concern, thats why I sent a authorization letter so the company could call on their own.