Legal Question in Credit and Debt Law in Connecticut

Creditor cashed check bringing account current, collection agency still wants 40

Dear Sir,

I realize how busy you are, but I feel I desperatley need you help with an answer to my question. I will outline the situation to keep it simple.

1. I purchased a time share in mexico.

2. I fell behind in payments.

3. Collection agency in Georgia contacted me. said I owed full balance on the contract plus 40% collection fee.

4. I sent a check to the time share company for an amount that brought the account up to date (in cludinding the late fees)

5. The check was cashed in Mexico ( I wrote on the check brought to current status)

6. Collection agency says I still have to pay them 3 months advanced monthly payments and a $1000.00 for the collection cost.

My questions are. If the time share company cashed the check am I current?

Does a collection agency have the right to charge me over a $1000.00 (40%) on top of the amount of money I already paid to bring the contract to date?

Ray


Asked on 10/29/03, 9:18 pm

1 Answer from Attorneys
Linda Subbloie Linda A. Subbloie, Esq.

Re: Creditor cashed check bringing account current, collection agency still want

The only way you could be bound by the collection costs is if your time share contract states so. However, the costs have to be reasonable. Most collection companies take their percentage (40-50%) out of the monies paid by the debtor and they forward the balance to the creditor.

With regard to the "advanced payments" you need to review your time share contract to see if this too is written into the contract. This might be required when a time share owner is so many days/months late. However, it must also be stated in the contract you signed.

Read more
Answered on 10/30/03, 12:25 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Connecticut