Collection Agency Perusing Me Personally for Business Debt
My question involves collection proceedings in the State of: UTAH
I have a question, or two, that I hope you experts can help me with.
I recently called a company to repair my fridge. They came out and gave me a price of $350. This was to repair my business fridge (I own a restaurant, but this unit is at my home) and I was calling on behalf of my Utah registered LLC.
I agreed to this and repairs were started. They were not able to repair my Fridge, in fact they actually made it stop working at all. They attempted to repair THREE times and after the third attempt the technician (who is also a part owner of the company) told me that;
- he did not know what was wrong,
- he had never seen this type of fridge before,
- that I would not be charged for their ‘attempted’ the repair.
These statements were RECORDED by me (as I had an uneasy feeling, so choose to record what was happening).
I subsequently found out (from the manufacturer) that they used the wrong parts, and likely caused more damage to the electrical system and a complete failure because of this.
About a month later I get a bill for $350. I called and spoke with the main owner and was told , “You never asked us to repair your Fridge, you asked us to fit a specific part and so you owe us $350”
Now I have received a letter from a Collection agency , and claim I owe them $800. They are also perusing this against me personally and not my business.
To clarify the situation;
- Since I never signed ANY paperwork or contract.
- This was a business transaction.
- I never agreed, verbally or in writing, to guarantee any part of this transaction personally.
- The company admitted, initially, that they failed and would not charge.
- I have a copy of the bill for $350, that I received AFTER they agreed not to charge me.
I have already responded to the Collection agency asking for Validation/Verification.
My questions are;
- In the absence of a written contract can the collection agency elect peruse this against me personally? Instead or my business?
- Can I instruct the collection agency that this was a business transaction and therefore they are perusing this wrongly? (How do I word such an instruction to force them?)
- Since the company admits they have not successfully repaired my unit, is there no protection for me against them changing their mind. How do I inform the collection agency of this ?
- Can the collection agency add $450 extra to the bill (I assume they are adding fees/interest) . I never agreed to any fees or interest at any time.
Many thanks for your time in reading this and for any suggestions, advised or answers you might have.
Thanks again
M
Re: Collection Agency Perusing Me Personally for Business Debt
The collection agency is just that - a collection agency. The creditor reports a debt to them, they attempt to collect it. They have been told that you personally owe a debt of $800. The creditor may confirm that when they call for verification.
You are free to instruct the collection agency not to contact you any more.
As you have told us, the company's present claim is that you hired them to fit a specific part, not to perform a repair, and that's supposedly the service for which they are billing you.
I have no way of knowing how the $800 figure was reached.
Re: Collection Agency Perusing Me Personally for Business Debt
Thank you for the reply. I have received a copy of a invoice in which they have charged $200 in collection fees.
Collection Fees were NOT part of the original contract or agreement. My understanding is that they cannot add these
fees unless it is part of the original contact / agreement or is allowed by state law? Is this correct?
My state is UTAH, and I can find nothing that allows for these fees under Utah Law.
Thanks
M