Can a collection agency attempt to collect "collection fees" though the accounts were resolved via creditor?

Question

I found out from a credit monitoring service which monitors my credit that a collection agency had two collection accounts associated with myself. One collection account was for an ambulance service rendered for an accident I was involved in. I contacted the ambulance service company and my health insurance information was processed and the account was paid in full. The other collection account was associated with the local cable company. I had not returned the cable modem I was renting through the cable company when I moved out of town. The cable modem was returned and the account was closed. In both cases no money was paid out of my pocket nor was it paid to the collection agency. As an aside the collection agency and services were provided in the state of Nevada. I no longer reside in the state.

Can the debt collection agency legally charge me for collection services given the situation described? What recourse do I have in challenging these collection fees?

Answer 1

You can get those two issues removed from your credit report by filing a letter with the credit reporting company. They are required to contact the collection agency who must then prove the charge or dismiss it. You can find a sample letter in a free pdf report called Credit Managment Masters Guide at the web page referenced below.

Answer 2

Dispute the items to the credit bureaus.  You don't need a specific letter format to do this -- you don't even need complete sentences.  Just indicate that both debts were resolved with the original creditor and you do not owe these collection agencies anything.  

If that doesn't get the items removed (and chances are the collection agency will verify to the credit bureaus), send the collection agency certified, return receipt letters requesting validation of the debt to include the name of the original creditor, amount of the debt, and copies of any documentation proving this debt is yours.  Give them 30 days to respond.

If they fail to validate, send another dispute to the credit bureau with a copy of your validation request, indicating they failed to validate the debt.

If they do validate, you should be able to show proof the debts were resolved with the original creditors.  I hope you got a receipt for return of that equipment and something from your insurance on the medical bill.  

The collection agency had a contract with the original creditors.  They should talk to them about any fees.