Mistakenly Sent To Collections
My question involves collection proceedings in the State of: Maryland
I have gym membership to which the monthly fee is automatically withdrawn from my checking account each month. I recently got a letter from my gym saying that my account was past due for the entire 2007 year and that if I didn't make a payment in full, I would be sent to collections. I called the gym's accounting office and they said that my account had already been turned over to a collection agency and they could no longer work with me. Well, I have my bank statements which show that the gym made a withdraw each month for 2007. Shouldn't the gym's accounting office clear this up and remove my account from collections? I have no desire to provide my bank statements to a collectoin agency - don't I have the right to deal with the gym directly? Especially since this is their error! So far, I can't get anyone in management with the gym to talk with me and they merely refer me to the collection agency. What should I do?
Re: Mistakenly Sent To Collections
Deal with the collection agency.
They legally own the debt now, so if you want to get it taken care of, you have to talk to them.
Re: Mistakenly Sent To Collections
Quote:
Quoting
LawResearcherMissy
Deal with the collection agency.
They legally own the debt now, so if you want to get it taken care of, you have to talk to them.
Okay, fair enough but can the creditor actually refuse to talk with me concerning this issue? When I called and asked that someone look at my account because I believe an error has been made - the woman replied "I've looked at your account and you owe the money." I replied that my bank statements prove otherwise so could you please give me the exact dates that you claim I failed to pay. Her reply to me was "you owe the money, stop calling here the girls at the front desk are young girls and you're harassing them."
Do I have any legal recourse against the creditor for being sent to collection erroneously?
Re: Mistakenly Sent To Collections
Quote:
Quoting
LawResearcherMissy
Deal with the collection agency.
They legally own the debt now, so if you want to get it taken care of, you have to talk to them.
Missy,
Technically speaking, the collectoin agency doesn't legally own the debt as there is no debt owed. I have all of my bank statements from 2007 which show an automatic $38.00 payment on the first business day of each month in the gym's name.
My question is do I have to produce copies of my bank statements to the collection agency? If I ultimately do have to produce them, can I blank-out info like my account number, etc?
Re: Mistakenly Sent To Collections
Well, someone from the accounting dept. of my gym just called me at work to apologize for their "major accounting error." Of course, I asked for it all in writing!
Re: Mistakenly Sent To Collections
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Quoting
Caswell
Well, someone from the accounting dept. of my gym just called me at work to apologize for their "major accounting error." Of course, I asked for it all in writing!
Good thinking.
I don't trust gyms.
A place that makes YOU pay to work is a place to be avoided.:D
Re: Mistakenly Sent To Collections
Immediately send a letter to the collection agency, certified with a return receipt requested, disputing the debt and requesting that they send a copy certified with a return receipt. After 30 days, when they fail to respond, send another letter noting that they failed to respond and by so doing, the matter is considered closed.
I would send a letter to the gym, in writing with a return receipt requested as well. Include in that letter a with a copy of the single line item (cover everything else up (including the bank's name) leaving only your name and the line item. Send it noting that on X date they told you they could not work with you and on Y date they apologized for the error. I would put cc: State Attorney General on the bottom of the letter. If it's happening to you it may be happening to others.
If it were me I would still file a complaint against the gym. File it with the State AG and the State consumer protection division. Also file a complaint with the BBB and send a letter to your legal representatives asking them for stricter laws on gym contracts. It takes a few hours of your time and becomes a headache for the gym.
Several states have enacted such consumer protection laws; Virginia is one, allowing for a 3 day right to cancel on a gym membership and the associated financing contract. I cancelled on Bally's after hearing bad things from members.
Keep an eye on your credit report. Keep an eye for the debt to be "sold" down the road as it is very possible that the gym will sell dreck (bad) recievables and this would be lumped in even though the client (gym) pulled it from the agency.
They might have potentially made a few months of your life a living hell, whether right now clearing this up or down the road.