Turn over to collection agency without reason

[tsveti]

What is the name of your state (only U.S. law)? I live in Florida now.
I used to live in Shoal Creek Apartments in Sterling Heights, MI. I had a lease contract for two years. Due to job relocation, i had to terminate my lease early. There were penalties in the amount of $2112.25 due. I contacted the accounts receivable department and arranged monthly payments. Montly payment in the amount of $250 was due at the beggining of each month. I had made 4 payments until last Friday, January 23rd, i received a letter that they are turning me over to collection agency because i did not sent the payment for January (due January 1st). I looked at my bank account, and i saw that the check was cashed by them on December 24rd, and i have a copy of the check. I called them trying to explain that there is a mistake, but they did not want to cooperate and told me this is not true. They have never received a payment. Now, i am turned over to collection agency without reason. I would appreciate if someone can help me how to proceed.

Thank you,

Tsvetelina

[cosine]

Originally Posted by tsveti

What is the name of your state (only U.S. law)? I live in Florida now.
I used to live in Shoal Creek Apartments in Sterling Heights, MI. I had a lease contract for two years. Due to job relocation, i had to terminate my lease early. There were penalties in the amount of $2112.25 due. I contacted the accounts receivable department and arranged monthly payments. Montly payment in the amount of $250 was due at the beggining of each month. I had made 4 payments until last Friday, January 23rd, i received a letter that they are turning me over to collection agency because i did not sent the payment for January (due January 1st). I looked at my bank account, and i saw that the check was cashed by them on December 24rd, and i have a copy of the check. I called them trying to explain that there is a mistake, but they did not want to cooperate and told me this is not true. They have never received a payment. Now, i am turned over to collection agency without reason. I would appreciate if someone can help me how to proceed.

Thank you,

Tsvetelina

So you have the canceled check that proves they were paid on time? First, be sure NOT to miss any future payments. When you get a letter from the collection agency, write a letter back and dispute the account as "being paid current, error by creditor". Send that letter certified, return receipt, and keep both receipts. If the CA calls first, tell them to send you a letter.

It may be a legitimate error by the apartment management company. They could have failed to post the payment on their books, even though the check was processed. This kind of error happens. In the most recent case I had like that, my payment was posted to the wrong account. It was eventually discovered, but over the course of a couple months, they were very harassing about it. Stand your ground.

Send the apartment management company a letter stating that your account was paid as agreed on time and the check was cashed and include a photocopy of the check. NEVER send them the original (but likely what you have from the bank is an electronic copy, anyway, as most banks do that these days).

DO NOT send a copy of the check to the collection agency.

There are a number of less than honorable businesses that are doing things like losing payments to try to accelerate accounts so they can get lump sum payments up front. Lately, the economy is forcing more businesses to do this. Usually they will just "lose" the check altogether. But if they actually cashed yours, it's less likely they are trying to pull this stunt (but still remotely possible).

[tsveti]

Thank you for your help !!!

I contacted the collection agency, and they will send me a letter. I also sent a copy of the check to the apartment management company, and they are still investigating. How long should i wait? Is there a legal action that i can take against them? This is really harassing.

[cosine]

Originally Posted by tsveti

Thank you for your help !!!

I contacted the collection agency, and they will send me a letter. I also sent a copy of the check to the apartment management company, and they are still investigating. How long should i wait? Is there a legal action that i can take against them? This is really harassing.

You have done what you need to do ... except ... be sure that next payment is sent so they get it ON TIME. Send it overnight express if you have not sent it, yet. You might even want to send THIS one certified, return receipt.

The next step is wait. When you get the CA letter, send them a dispute with a short description of the issue. Send the apartment management company a copy and send both certified, return receipt.

[tsveti]

I did send my next payment a week ago, but they did not accepted. They returned the check back to me.

[cosine]

Originally Posted by tsveti

I did send my next payment a week ago, but they did not accepted. They returned the check back to me.

Send it again, this time mailed overnight, certified, with return receipt requested.

[StephenH]

If this does not get resolved, your next step would be to get an attorney. If the collection agency tries to sue you, file a counterclaim that there was no contract violations and that you paid on time.