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Posted: Mon Apr 14, 2008 12:47 pm Subject: CheckCare

I wanted to see if anyone could advise me here..

I had two chcks that were returned and ended up with CheckCare. My mailbox had been stolen and mail had beed returned to sender while I was in the process of filing the paperwork on the mailbox and getting a new mailbox. I never received the initial notice of the returned checks or the returned check notice from the bank. This was in November and the two checks totaled $9.99 and there was a $30.00 return check charge for each check.

I received a notice from CheckCare in February and it was marked 2nd notice. Because I never received a first notice I called them right away to take care of the items. I was told by the representative that a week earlier my account was transfered to the Law Office of John Hall and Associates. When I called there the gentleman I spoke with told me that the amount now due would be $310.00 and I had to pay by MoneyGram or they would take further legal action.

I was concerned about the amount, becuase I really couldn't afford it, I was told that the amount was to cover the legal expenses. I sent the amount that night.

I was also told I would receive a letter from them telling me the account was now paid in full, which I never received. I left the gentleman I spoke with two voice mail messages and he has yet to return my call.

Was their request for such a large amount to be paid legal?

Posted: Mon Apr 14, 2008 7:26 pm Subject:

More than likely it was. A lot of banks will charge you a continuous overdraft fee each day that your account stays overdrawn after a specified period of time(like 5-7days.) These fees can add up fast and then I'm sure that the collection agency tacked on a fee there as well. I would check back with your bank to make sure that your account was settled and request something from them in writing stating that it was paid in full.

And if you need to I would leave him 20 or so messages until he returned my call. You had to be one of the easiest clients he ever had to work with based on your story. Most collectors have to hound people for weeks or even months to get them to pay their debt in full. For that reason alone he should have no problem returning your calls.

Posted: Tue Apr 15, 2008 4:49 am Subject:

That would be about $115 for each returned check, something sounds off here. I would suggest that you request information on the fees that were accessed.

Posted: Tue Apr 15, 2008 5:11 am Subject:

Many states have provisions which apply a penalty to each bad check--this in addition to NSF fees.

Posted: Tue Apr 15, 2008 7:14 am Subject:

These weren't including the Banks NSF fees, those were debited from my checking account. The retruned check charge on the 2nd notice from CheckCare was $30.00 per check and the balance of the two checks for a total due of $69.00. It was Hall and Assoicates that informed me that the additional $230 was to pay the legal fees that they incurred when the account was turned over to them.

Posted: Tue Apr 15, 2008 7:55 am Subject:

Legal fees? You may want to check your state statutes to see if those fees are even allowed. Something doesn't seem right here.

Posted: Tue Apr 15, 2008 8:16 am Subject:

I'm in NC and I am going to see if I can figure it out. I was told those were the fees that were used to "retain" their firm.

Posted: Tue Apr 15, 2008 8:43 am Subject:

Hi JCEMT is this what I'm looking for?

No debt collector shall collect or attempt to collect any debt by use of any unconscionable means. Such means include, but are not limited to, the following:

(2) Collecting or attempting to collect from the consumer all or any part of the debt collector's fee or charge for services rendered, collecting or attempting to collect any interest or other charge, fee or expense incidental to the principal debt unless legally entitled to such fee or charge.

Posted: Tue Apr 15, 2008 9:07 am Subject:

That would seem to be the right subsection.

Posted: Tue Apr 15, 2008 9:09 am Subject:

It didn't break down in to any further subset....

Posted: Tue Apr 15, 2008 9:50 am Subject:

You may have some warrents on those checks which would have caused the increase. You can't really claim not receiving notice that the checks came back because you have access to your bank records and it was your responsibility to ensure that everything cleared.

Your best bet would be to call your local court house or hot check division and ask what the penalties are.

Posted: Tue Apr 15, 2008 9:53 am Subject:

I know that when a debt goes to a lawyer, legal fees can be included in the total balance owed.

Posted: Tue Apr 15, 2008 9:57 am Subject:

WOuldn't I have been served with a warrent?

It's been paid in fukl and I have a PIF coming in the mail from Hall and Associates, I spoke with them this morning.

And I fully understand my responsibilities.

Posted: Tue Apr 15, 2008 4:01 pm Subject:

Civil Penalties, Bad Checks, North Carolina:

Treble damages (3x), or five hundred dollars, whichever is less, but a minimum of one hundred dollars.

Posted: Wed Apr 16, 2008 6:39 am Subject:

Yes, but that is only if it goes all the way to court! I had a couple bouncy checks and it went all the way to the DA before I had a chance to pay them off (this was due to my bank going neg like 1K because of a payday lender.)

Definately call the hot check division and ask them the process....it may not have even gone to an atterny, but a CA because with hot checks it works a bit differently...it goes to the DA who then hauls your butt before the judge..this smells VERY fishy!

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