What is the name of your state (only U.S. law)? Wisconsin.
I purchased home owner's insurance over the phone for a period of 1 year with my credit card. I never spoke to anybody in person or signed any documents of any kind - just a quick deal over the phone with my credit card number.
After the year of insurance was up, I decided to go with another insurance company. In order to get the best rate possible with the new company, I had to have current/active coverage - so I paid over the phone for one additional month (13 total months) with the original insurance company. At this time, I also informed the company on the phone I was going with another insurance company and no additional coverage was needed. In month 14, I purchased insurance with a new company.
To my surprise, the original insurance company continued to bill me for insurance. I refused to pay, called the insurance agent that I went with another company, and they should cancel the balance owed. Instead of zeroing out my balance, they sent it to collections (about $56 for 1 month of coverage) per the letter (postmarked 6/27/2012) from the collection agency. Out of principle, I refused to pay - I don't owe them one damn cent.
I sent the collection agency a letter (July 9th 2012) certified mail asking them to validate the debt. I specifically asked for:
ï¿½ What the money you say I owe is for;
ï¿½ Explain and show me how you calculated what you say I owe;
ï¿½ Provide me with copies of any papers that show I agreed to pay what you say I owe;
ï¿½ Provide a verification or copy of any judgment if applicable;
ï¿½ Identify the original creditor;
ï¿½ Prove the Statute of Limitations has not expired on this account;
ï¿½ Show me that you are licensed to collect in my state; and
ï¿½ Provide me with your license numbers and Registered Agent.
The agency responded with a letter dated 7/23/2012 (also postmarked 7/23) that arrived in my mail box on 7/30/2012. Their letter is only 3 paragraphs long and contains none of the information I asked for. Instead, the collection agency's letter states "As of 7/23/12, our client's records indicate the above referenced amount due remains outstanding. Please remit payment without delay."
Obviously they are not going to let this drop. Because they are asking me to "remit payment," it seems like this is their 2nd attempt to collect a debt I told them I do not owe and they cannot validate it. What should I do? Sue them for $1,000 each time they ask for money as per the federal law?