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Payment of Debt Made to Company or Collection Agency when Amount Owed is in Dispute

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  • 07-13-2012, 08:52 AM
    than
    Payment of Debt Made to Company or Collection Agency when Amount Owed is in Dispute
    My question involves collection proceedings in the State of: SC
    I signed up for an internet service. The service was 2 months late on installation. I paid a few months, then needed to terminate early due to moving. I expected the final bill to be last month plus maybe an early termination fee, however I was hit with all kinds of fees and a much higher amount. I went to the company in person to discuss the amount and was told that I had a special rate due to a year contract and that since I was terminating prior to that year, I would be charged a higher monthly fee (for all months already paid), plus an early termination fee, plus they based what I owed on when the contract was signed and not when the service began (2 months later).
    I asked to see the contract I signed where it stated all this (especialy the part about a higher rate if terminated prior to a year), however they cannot find my contract. I have been there a few times to work this out and have been told just the amount they say I owe, but they still cannot produce any contract that I signed. I also do not have a copy of the contract. Now I am getting calls from a collection agency.
    I would like to pay what I believe I owe (last month, plus a reasonable early termination fee) however now I don't know who I deal with; the company I owe the money to, or the collection agency? I am not trying to get out of paying, just want to pay what I believe I should and since they cannot produce a signed contract stating anything different, I don't think I am being unreasonable. I am a college student and on very limited means, but most certainly don't want to hurt my credit.
    Do I need to get a lawyer and if so, are there any legal services for issues like this for those who cannot afford a lawyer?
    Any advice is truly appreciated.
    Thank you
  • 07-14-2012, 09:51 AM
    Mr. Knowitall
    Re: Payment of Debt Made to Company or Collection Agency when Amount Owed is in Dispu
    The debt is owed to the creditor. The debt is being collected by the collection agency. The collection agency may be authorized to settle the debt for less than its face value, in which case you can try to negotiate a payoff amount with them, get it confirmed in writing, and pay that reduced amount. You can also tell a third party collection agency that it is not to contact you again in relation to the debt. If the collection agency can't or won't negotiate, or you don't want to negotiate with the collection agency, you can try to negotiate or litigate the issue with the actual creditor.
  • 07-16-2012, 09:05 AM
    than
    Re: Payment of Debt Made to Company or Collection Agency when Amount Owed is in Dispu
    Thank you for this information. Do you think the increased amount on the bill from the creditor is valid if they cannot produce the contract? I was thinking that they could not make the payment higher just by saying that the contract stipulated an increase in the monthly charge if there was an early termination. I believe, for the last month's bill, I owe the regular amount (amount I had been paying all along each month), plus an early termination fee. I am just trying to get a feel if what I think is correct. If they cannot show me where I signed a lease saying that an early termination would increase all the monthly payments, can they legally change my monthly payments (after they have already been paid) and tack this amount on to the last bill along with the early termination fee?
    Thanks!
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