Question:

Can a collection agency change the agreed amount?

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I've settled a debt I owed, the agent at the collection agency said that they will be debting my bank account for a certain amount for 4 months and that will suffice the amount I owe. However after four months, they sent me a letter saying I still have a balance, and they are going to continue debting my account. What should I do?

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  1. Ahhhh....so many mistakes.

    1) Never allow a collection agency to have direct access to your bank account.

    2) Always get any agreement in writing.

    At this point you can bet they will continue to take money out of your account, so you need to either block access or close the account.  

    With nothing in writing they will continue to post this to your credit report and will continue to hound you.  Good luck.


  2. change your bank account and transfer the money over to the new one and do not let them know about it.

  3. Did you get that in writing at the time? debit not debt.  The agent's name? the date and time of the agreement?  Do you want to pay all that you originally owed?  If you agreed and have something to substantiate, send a copy to the collection agency and say, no.  If they take more without authorization, they commit fraud.

  4. Do you have anything in writing from them about your agreement? If so, send them a letter with the copy of what they sent you and tell them you owe them nothing else per your agreement. If they keep harassing you about it, take your information to an attorney and have him tell them back off.

    If you don't have anything in writing from them, then you have nothing to use against them and they can come after you for the remaining balance. You shot yourself in the foot, legally speaking, by giving them your account information and not getting your agreement in writing.

    About the only thing I can see is that you can go to your bank first thing on Monday and speak to them about blocking the collection agent from debiting your account. But you need to start seriously considering the possibility of them suing you for the remaining balance...and preparing yourself for it.

  5. Hi,

    I used "Credit Solution" to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.It's legitimate.I came across this company on NBC News Special Edition.Check it out here:

    http://redirx.com/?0g4c

  6. I do hope you are keeping Records of all this transaction. If you no longer owe them anything, Go to your bank and put a Stop on anymore Drafts from this company.

  7. Your only option is to contact your bank and issue a stop payment order.  There is usually a bank processing fee for this service, however.

    I want to be very clear on this matter.  This is exactly why you are to never give a collection agency the permission to debit your checking account.  Always write them a check or to be super safe, pay them by money order or cashier's check.  

    You should remain in control of your banking account at all times and giving a collection agency access to your banking account can come back to harm you.

    If you have a written letter stating how much they will be debiting your checking account, you can present that to your bank as proof of the need for a stop payment.  Maybe the bank will waive the fee.  

    Also, If you have a written agreement, you can also report the collection agency to the Federal Trade Commission.  The collection agency could be in violation of Section 808 of the Fair Debt Collection Practices Act.   See hyperlink below.

  8. Notify, in writing, by certified mail, return receipt requested, both the collection agency and the bank that you only authorized debiting your account for 4 months and did not authorize any subsequent debits.  If further debits occur, immediately send a letter to the bank disputing those debits as unauthorized.

  9. It depends what documentation you have for the original agreement.  Also in the letter do they explain what the additional amount is for ?  Some collection agencies will make an agreement with your for the debt, but charge you for this service (nasty practice).  If your original documentation with the agency shows the 4 payments of X Dollars over 4 months will settle the debt in full.  Call your bank to have them stop automatic withdrawal from that company and write them a registered letter stating your position.

  10. All I can say is "ditto" on what Studly has said, so many mistakes. Take his advice and learn from this.  

    This is why they are called "sleeze ball" collection agencies.

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