Collection agency reported paid debt for collections on credit report

[jenjen10is]

What is the name of your state (only U.S. law)? Texas

Hi all... I had my wisdom teeth removed, and paid in full, the remainder of the bill after insurance paid, but it was late. I was wondering if:

1) an account could go into collections for a single month's late fee of less than $10
2) the collections company could add $11 monthly service fees to it
3) the collections company could report it on my credit report, since the original bill had long been paid in full, and the amount was nothing more than a $10 late fee plus charges from the collections company

This seems an extreme length to go to for a $10 late fee

Thanks so much in advance

jenni

 

[justalayman]

What is the name of your state (only U.S. law)? Texas

Hi all... I had my wisdom teeth removed, and paid in full, the remainder of the bill after insurance paid, but it was late. I was wondering if:

1) an account could go into collections for a single month's late fee of less than $10
2) the collections company could add $11 monthly service fees to it
3) the collections company could report it on my credit report, since the original bill had long been paid in full, and the amount was nothing more than a $10 late fee plus charges from the collections company

This seems an extreme length to go to for a $10 late fee

Thanks so much in advance

jenni

does the original agreement allow for a late fee? If not, they cannot unilaterally impose one. If it did, then it has become part of the bill and the account can be reported as delinquent/not paid legitimately on your credit report

to the monthly service fees; unless it was in your original contract, those fees cannot be imposed unilaterally. You would have had to agree to them somewhere along the line for them to be enforceable.

and while you say it is a long way to go for $10, you must realize it is a lot of concern over those $10 for you to not just pay it and be done with it, if it is legit.