Ok, I need help with this.

[uptomyears]

Today, I received a letter from a collector/atty demanding payment. I have 4 days to pay. This bill was for a vendor for an event my now defunct company sponsored last year. There was a special checking account set up for the event and I was the signer on the checks. Thats how they got my name.

There was a signed contract for a much less amount but there were add ons prior to the event that price was not discussed upon order. I ordered regular units and since they were out of those they substituted and delivered upgraded units and charged me full price. I did not agree to this. The OC wouldn't work with me, just harassed for payment, they were lunatics! (long story and many solid violations) and cannot produce a signed contract for the amount billed. A considerable amount was paid on the account before the dispute which is over and above what I should have been charged including funds from my personal account.

This is the first communication from the collector with me. Shouldn't they have given me 30 days to respond? Should I send a DV or CD letter? Or how else could I respond to this. Also, I'd like to get the OC on the violations, they're big ones, where do I start?

Here is the letter.

My Home Town Festival
Attn: uptomyears

As you know I represent XYZ Company. to whom you owe $xxx.xx. Unless your full payment is released by Friday April 24 my client has instructed me to take vigorous action against you in order to collect the outstanding amount indicated above.

Specialized Council in your home County has been retained to place the appropriate liens on your real and or personal property. Furthermore, we will utilize the full power of the court to collect the indebtedness. You should be aware that according the the law, this money is earning interest and we will request the court to assess costs and attorney fees. I assure you my client will collect their funds regardless of when or how payment is made.

Please note, in order to avoid all credit reporting and per my client's explicit request, you must make your payment to our company XXXXX.

Warmest personal regards,

XXXXX

I am filing BK7 in the next few months and planned on including this. I don't have any assets for them to attach.

[treehugger1]

Sounds as if it's a business loan. Send the DV letter anyway.

[uptomyears]

This is what is confusing. All the bills were for xyz fesitval and paid through that account from donations from other area sponsors. It wasn't really a business. The event was bankrupt before it started. I personally paid for a lot of the necessities and cleaned up the balance of the bills since it was my company that sponsored/threw it. However this one vendor was a PITA and sprung this bill on me after the fact. BTW all of my other business debt was personally guaranteed by me so the business is bankrupt also. Ya think the DV is the way to go or should I also CD also? Or won't it matter?
Can they ask for payment so quickly? Don't they have to give me 30 days to respond?
They don't even know I received the letter in regualar mail.

[treehugger1]

My Home Town Festival
Attn: uptomyears

"As you know I represent XYZ Company. to whom you owe $xxx.xx. Unless your full payment is released by Friday April 24 my client has instructed me to take vigorous action against you in order to collect the outstanding amount indicated above.

Specialized Council in your home County has been retained to place the appropriate liens on your real and or personal property. Furthermore, we will utilize the full power of the court to collect the indebtedness. You should be aware that according the the law, this money is earning interest and we will request the court to assess costs and attorney fees. I assure you my client will collect their funds regardless of when or how payment is made."

Specialized Council? Sounds like scare tactics. They would generally first need to sue you to get liens, etc.

[BigJohn]

UptoMyYears, I hope you have the original signed contract and receipts for all amounts paid. If you audit the original bill against what you have paid, you might find out you over paid and demand payment in full.

[uptomyears]

Yes I have the contract for a lesser amount and my canceled checks paying over and beyond. That is all they have too. The contract amount isn't correct, as we did some add on's just before the event. But I never agreed to the inflated price for the add ons. I disputed this immediately after I found out. Several times I asked for an itemized bill which they never sent and I have received just 2 statements over the last 9 months. The inscesent phone calls were extremly harassing. So I stopped taking their calls. These people were lunatics and have racked up violation after violation. Calling my employees about the debt, misrepresenting themselves on the phone, calling from a cell phone requesting information about our services. They even sent a letter referencing my debt and demanded payment from our Town Counsel, who didn't have anything to do with the event. I feel I have paid in full for the original contract plus what the add ons would have cost at the agreed price. I think I'd like to get them on the violations now. How do I go about that? How should I handle the collector?

[BigJohn]

Send them a copy of the contract and the amounts you have paid. Tell them you expect a certified check for over payment, and you want to be paid within 10 days. Tell them if they do not pay you will take them to (small claims) court. Tell them if they continue to harrass you, you will get an Injunction for Harrassment against them.

[frogger]

Specialized Council in your home County has been retained to place the appropriate liens on your real and or personal property. Furthermore, we will utilize the full power of the court to collect the indebtedness. You should be aware that according the the law, this money is earning interest and we will request the court to assess costs and attorney fees. I assure you my client will collect their funds regardless of when or how payment is made.

A collection agency can not make threats against you. If this is the exact wording that was in the letter, the collection agency has either made a threat or a promise.

By using the word "will", they have told you the course of action that they intend to take. If they had used the word "may", their options would have been more open.

After receipt of this letter, if they do not follow thru as they said, then they are in violation of the law. Just food for thought.......