Asset Acceptance in Texas -- Can They Do This?
Date: Wed, 10/04/2006 - 12:02
I owed Southwestern Bell telephone co. $118.47 in 2001 and put off paying the outstanding bill because I now live with my ex-wife. Well, guess what? Asset Acceptance started calling me a few weeks ago at my ex-wife's house, which is really strange because I am in no way connected to her phone, house or anything else!
Though this is rather strange, my qustion isn't 'How did they find me here?' but 'Can they do this?':
I spoke with a girl in a local AA office today and told her that I wouldn't be able to pay the bill until the middle of December and was just calling to let her know so people could stop calling my ex-wife's house and leaving voice messages. Well, the girl said that I should be aware that the amount owed will be higher because of 'interest'...
"What interest?" I asked. "I didn't take out a loan with you guys. You bought a debt from Southwestern Bell and that's the debt I'm going to pay off. How do you think you're going to charge me interest?"
"Well, the original debt was $118.47," she said. "We got the account in 2004 and when you spoke with somebody here a few days ago it was at $133.71 -- now it's at $133.84, so that's why I'm saying it'll be higher if you wait 'til December to pay it."
"Well, how much 'interest' are you guys charging me?" I asked her.
"Six percent," she answered.
She claimed the interest was compounded monthly, if you can believe that, and that just doesn't make sense of course because at that rate I'd owe them $511.24 in two years -- and $4,165.16 in five years -- all from a $118.47 outstanding (and charged off) balance owed to my phone company in 2001!
While I think the girl obviously meant they charge me something like 6% interest every quarter or year, I'm wondering -- can they even do this in Texas??
Can a debt collector in my state charge interest to the debtor on a debt they bought from someone else -- like a phone company?
Or should I just pay them the original balance of $118.47 and demand they settle for that amount?
You can try to settle for the original amount, but yes, they can
You can try to settle for the original amount, but yes, they can and will charge interest monthly.
Get in touch with the phone company and find out if they have yo
Get in touch with the phone company and find out if they have your file. Chances are that they may be able to make payment arrangements with you and won't have to deal with the CA. Definitely get the debt validated by the AA in writing. All the charges need to be put in writing before you pay anything.
In Texas, collection fees are allowed only if your state permits. You must be able to confirm this info with your state AG office. Also, go through the contract with your phone company and see if there are any collection charges
As a former phone company employee in the billing and collection
As a former phone company employee in the billing and collections office, I can tell you that once the account is turned over for collections, you will be referred to the collection agency to deal with. I know it stinks, but that is how it is. It takes months and months of no payments or payment arrangements before we send to outside collection. The time for arrangements to be made was before it was sent. I think that is what is misunderstood in a lot of situations.
