Excessive Collection Amount

[kristinevr]

What is the name of your state? TX

Hi, I wrote a bad check in MA this March without meaning too. I had enough funds in my bank account to cover the $40 check I wrote, only I had opened up a new checking account with the same bank after closing an old one. The problem was that I used an old check-- I don't write checks often and didn't realize my mistake until June when the collection agency sent me a bill asking for $163 or they would sue me! They had sent me a previous letter in late March asking for the $40 plus an extra $15, only I was graduating and I let my mail and other acccounts fall a little behind during that time. I did not read that letter until after I recieved the second notice in June. I called them right away (the collection agency/laww firm by the way is Bennett and Deloney) and they said that I had to pay the full $163 amount.

I read a previous post here concerning someone else's problems with this agency and got some good tips-- I now know that it probably isn't legal for this party to ask me for over 4xs my original charge and I also just contacted the original company I owed the debt to, asking them if I could pay them directly.

But while I am waiting for developments, I'd just like to make sure that I am correct in thinkng this charge is excessive. I know I owe at least $40 and am willing to pay a little more, but in case I do have to settle with Bennt & DeLoney in the end, how much is the legal amount they can ask me to pay?

Thank you.

~Kristine

 

[kristinevr]

Clarification of State

Just to clarify, I am now in Texas, but I wrote the check in Massachusetts, where I attended school. What laws would apply to my debt collection?

 

[Ladynred]

I may have told you this before, but Bennet and Deloney are a bunch of low-life scags who have been sued numerous times and fined more than once by the FTC for their illegal practices. Obviously they don't care about their former losses, they keep doing the same illegal things !!!

I *believe* the MA law would apply as that is where you wrote the bad check.

The CIVIL penalty for a bad check in MA is as follows:

Amount due, costs of suit, protest fees.

You haven't been sued, so they can't tack on court costs and only the courts can award those fees. So, looks like w/o a lawsuit, they can only make you pay the $40 !!

The CRIMINAL charges for a bad check are nasty:

Up to $300 fine or one year in jail. Up to $600 fine and up to 2 years in jail or up to 5 years in penitentiary

To press criminal charges, they would have to prove you were deliberately passing bad checks ie. there was criminal intent.

If you can clear the check amount with the party you wrote the check to, then do so and make sure you get a statement that you HAVE paid it. That will deflate B&D and there's not a damn thing they can do about it.

 

[kristinevr]

So does this mean that I can tell them that I will only pay the $40 and if they refuse, can they find some justification to still sue me, as I wasn't unwilling to pay my debt? (I am contacting the primary party btw, I just want to keep all my bases covered.)

And thank you, I read your advice previously, you're a great help!

 

[Ladynred]

Quote the MA law to them, you only owe the amount of the check. No lawsuit - no court costs. I have no idea what a 'protest fee' is, but I doubt it applies.

Bennett and Deloney don't sue, they just harrass. They're not in your state, and it would cost them a LOT more than $163 to sue you.

I wouldn't even talk to them until you find out if the original party will take your $40 payment to clear it up.

 

[JETX]

These 'scum-bags' do in fact claim to be attorneys, located in Utah. Interesting sidenote: Utah does NOT have a UPL law, meaning that just about anyone there can claim to be an attorney and do anything they want!!

For more on them:
http://www.budhibbs.com/budhibbs/agencydetails.asp?ID=152
http://www.wvs.state.wv.us/wvag/press/2003/oct/22.htm

My suggestion... write the original merchant a letter and tell them you have only recently 'been noticed' of the outstanding check and offer to pay the $55.00 demanded ($40, plus the $15). Ask them to confirm by return mail of their acceptance of your offer. Then, if they agree, send them a money order. Obviously, keep copies of EVERYTHING.

However, if they don't agree, you might just send them the money order anyway..... at least that way you can prove your intent to pay if needed.

As to these scum-bags at B&D, ignore them. First, they aren't even licensed to do debt collections in Massachusetts.
http://www.mass.gov/dob/calist.xls

Nor do they appear to have the required surety bond to do debt collections in Texas.

BTW, the Massachusetts statute regarding payment, required notice and fees can be found at:
http://www.mass.gov/legis/laws/mgl/93-40A.htm

 

[kristinevr]

Thanks for all the advise! I feel a lot calmer now.

 

[fast actin]

i too have a problem with b and d

i bounced a couple checks for pizza, of all things. i was a student, moved a lot, didn't like to open things that looked like bills, etc. etc.

now bennet and deloney are on me. sure, i deserve this. i took care of a few items, paying roughly $150 a week for each $20 bounced check. then they came back and said that they needed 600 some odd dollars by the end of the month to take care of the remaining balance and avoid even more charges.

so today is the end of the month. i don't have $600. i called them up to tell them i couldn't make the payment. first i was asked why i couldn't make the payment.

"because i don't have the money."

then i was asked how much i had in my bank account.

"about $200."

send it all in, he said.

"no way, i can't do that." for one thing i am away from home on business. i don't have a credit card and i need money for my expenses, not to mention to get back home. i was all prepared to talk to them about making payments next week. next week i get paid.

before i could say anything else, however, i was met with, "then i can't help you. goodbye." click.

i've already sent an email to their "info" address hoping to clear this up, but i don't expect to get too far with that. so what should i expect and is there anything i can/should do?

oops, almost forgot. i live in new orleans, louisiana. good ol' napoleonic code.

 

[JETX]

"is there anything i can/should do?"
*** Yep. Start by not hijacking someone elses thread. Make your post as a new thread.