Ask Me Help Desk - Collection Agency Refusing Payment

A couple of weeks ago my husband and I were attempting to pay off a debt we owed to a collection agency. After speaking with them several times and getting the $ amount, I sent a fax letting them know the money would be going out. Upon calling them again to see if the fax had been received, I was told that we now had until the end of April to get the money in.

So yesterday I went to the bank and got a cashier's check to send out today. However, when I called to confirm their address, I was told that the amount was not right, and now had to include April's payment. If I sent the check in, it would just be refused and sent back to me. :confused: When I questioned this and told them about the extension we were given, the woman said that she would never have given a month's extension, and that we only had two weeks to get the other amount in (which technically would have been Friday).

Is this right? Can they do this, or are they way out of line? I hope someone can help here. Thanks.

Can they do this? Yes. Are they out of line? Yes. Unless you have it writing that payment was due at such and such a date, then what is in writing governs.

It's very iffy, if this is a bill they are allowed to charge interest on then yes, if you send in the payment after the next payment date then they can add more interest. I don't know why they would send the check back and not just ask for the additional for the interest.

It sounds like maybe they were trying to trick you into paying one month more interest if they believed the money was coming.

Depending where you are you could file a complaint against them with the FTA or consumer protection agencies in Canada but your best bet is to pay the amount they want and then consider going after them for tricking you into paying more at a later time.

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Originally Posted by ScottGem

Can they do this? Yes. Are they out of line? Yes. Unless you have it writing that payment was due at such and such a date, then what is in writing governs.

No, we did not get anything in writing (and as far as I know have never received anything by mail either), but were just told verbally over the phone.

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It's very iffy, if this is a bill they are allowed to charge interest on then yes, if you send in the payment after the next payment date then they can add more interest. I don't know why they would send the check back and not just ask for the additional for the interest.

It sounds like maybe they were trying to trick you into paying one month more interest if they believed the money was coming.

Depending where you are you could file a complaint against them with the FTA or consumer protection agencies in Canada but your best bet is to pay the amount they want and then consider going after them for tricking you into paying more at a later time.

Well this is a collection agency through Washington Mutual and is a payment for our house. It's just weird because during that initial phone call we were told that unless we had the payment in PRONTO, they were going to foreclose and we'd have to be out in 3 days. However, after receiving the fax, all of sudden their tune changed and we now had an extra month (but like I said no mention of extra payment). How does that even make sense? I've had dealings with the shadiness of CAs before, but since this had to do with our house, they put a scare in me.

Well although I feel like they're violating something within the FDCPA, I don't know for sure, so I don't know if filing them with the FTA will do any good. If they are in violation, I don't know what section.

This is unusual. Banks don't generally turn foreclosures over to collection agencies. They have internal departments to handle that. Collections agencies more often work with unsecured debt.

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Originally Posted by ScottGem

This is unusual. Banks don't generally turn foreclosures over to collection agencies. They have internal departments to handle that. Collections agencies more often work with unsecured debt.

Well on their website it says the company is a division of WM.