How much in costs can a collection company charge you?
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How much in costs can a collection company charge you?
I was contacted by a collection company about a check for $150 written 2008. They demand $800 by tomorrow or they will take me to court. I thought the law requires me to pay a max of 3 times the check amount. I am broke right now and I need to give them a answer by 12-29-10.
Asked on December 28, 2010 under Bankruptcy Law, Colorado
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
From what I have read on the law it appears that you are correct: Colorado Bad Check laws have a civil penalty of triple the amount of the check plus reasonable fees. So it definitely appears that you may be being strong armed here. And forget the 12/29/10 date. They are just trying to make you even more nervous. Now, here is wht I also think. The collection agency is violating the Fair Debt Collection Practices Act by threatening you in any way. And you need to take the reigns here and ask them to validate the debt: they need to provide a copy of the original bad debt, they need to prove that they have a right to collect the debt owed to the party that you wrote the check to (did they buy the right? was it assigned to them?). And you want an accounting of the amount over and above the 3 times the face value of the alleged check and why it is $800. Take names and numbers as well. Good luck.
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