Who defaulted?

[beelantan]

Signed 2-year contract w/ a phone co 3 years ago, had to cancel after 1 year. Co. wanted $6K which included 1 year + lates fees. Agreed to $2500 of $200/mo. Did not pay, collection agent sent 2 faxes - 1st saying $2500 settlement, how come have not paid; 2nd settlement offer of $2625 to be paid in full by 3/21/08. Cant afford so agreed on 1/2 now & $100/mo. Provided credit card which he charged $1312.50 & then $100/mo. May 6, tried to call him to inform cc cancelled & was going to provide w/ new cc when told he's no longer employed. No cc charges Mar & Apr.

Prepaid Legal atty sent letter on my behalf stating "their agent assumed the responsibility of charging $100 on cc & the deviation from pattern is = to a default & waives remaining bal of $200. In good faith, I will make lump sum of $200." New agent insisted owe $4K+ 'cuz I defaulted; 7/6 she faxed over $1082 offer. Job cutting hrs & want debt to go away 'cuz uncertain about future earnings. 7/10 agent offered to split $1K into 3. I want to pay $200 & close.

Do they have good case to take to court for $4K? Please advise as I feel I did not default.

 

[tpajet]

Not sure, but I would call the credit card company and dispute the charge. If that was not what you agreed to pay, then the cannot legally charge you that. I would also file a complaint with your state attorney general's office. They probably won't do much for you directly, but they may still investigate this collections company.

The other thing is, if this is the same collections company, then it doesn't matter if the old guy doesn't work there anymore. Your agreement was with that company, not him. You need to tell them that you will only honor the agreement you had with him (or at least the one your lawyer sent, since you later agreed to that) and tell her that she can go pound sand with that $4K, and that if she tries to collect you will see them in court. They are going to be pushy, and try to push you over. The key is don't bend, don't act scare, and push back.