Question... Who to pay?

[BLeonard]

What is the name of your state?IN

My wife and I had a joint bank account that we closed about 2 years ago. We recently found out that the account has a negative balance on it, and that we owe them to settle the balance. OK, no problem there. Yesterday, we got a letter in the mail from a credit adjuster stating that they had purchased a debt on a bounced check for $115. Now, this check was written on the old account. Not a big deal, we got the money to pay it, it's just is raises an interesting question... Which one do we pay? Do we pay the bank, which the debt includes the check in question? Or, do we pay the collection company? If we pay the bank and settle the debt on it (which includes the check written) would they inform the credit adjusting place? How does that work?

-Bill

 

[seniorjudge]

You pay whoever you owe the money to.

Before you pay, make sure whoever you pay owns the debt.

Make them prove it in writing.

 

[BLeonard]

You pay whoever you owe the money to.

Before you pay, make sure whoever you pay owns the debt.

Make them prove it in writing.

OK, how do I go about doing that?

The letter we got from the credit adjusters states "We have purchased the above referenced account. We own your account and have an investment in it." Again the balance is about $115.

Now, this $115 is from the bank account, where I think we owe around $500... So, the $500 the bank says we owe them is $385 plus the $115 that, in essence, both the bank and the credit adjuster claim we owe them. Is this letter stating that they "Own the account" enough? Meaning, if I pay them their $115 that is owed, I now owe the bank the remaining $385? I just don't want to pay the credit adjusting company this $115 and have the bank tell me that we still owe them $500. In other words, I don't want to pay the bank AND the credit adjusters for the same check.

Thanks for the quick reply. I've just been reading about how some of these "credit adjusters" basically are out to screw you out of money, while settling none of your debt. This practice of companies "buying debts" seems fishy at best... For example:

Say you have a bank acct and wrote 2 checks to different places for $100... The bank ends up closing your account at -$200 (for the 2 checks) and the places that the checks were written to sells their "debt" off to separate companies.The credit adjusters sends you a letter saying you owe them $100 each, and the bank sells theirs off to another debt collector, which states you owe them $200... So, if you listen to all of them, you now owe $400... Doesn't seem right.

In that instance, should you pay the adjuster that bought the bank's debt, or the 2 that bought the debts from the places the checks were written... Obviously, all three of these companies can say "We own this debt," but they can't expect someone to pay twice for the same debt, can they?

-Bill

 

[TigerD]

You are over thinking the issue.

1. What is a credit adjuster? Do you mean collection agency?
2. You owe the person you wrote the check to for the amount of the check plus fees; you owe your bank bad check fees plus interest.

The face value of the check is only a tiny fraction of the amount owed when a bad check is neglected.

I have a gentleman that wrote my bar a bad check for $15. After thirty days, it became $135 due - plus attorneys fees and court costs if he was sued.

I am sure his bank charged him as well.

So, let's slow down and get the info so we can help you.
1. To whom was the check written: don't answer on the board, just write it down
2. Was the check ever paid by your bank?
2a. If yes, contact bank and find out if this is the total debt you owe them. If it is pay it and keep the receipt. If not find out what you owe, pay it and keep the receipt.
2b. If not, collector is most likely acting for the original merchant and you have to pay the collector.

DC

 

[BLeonard]

You are over thinking the issue.
So, let's slow down and get the info so we can help you.
1. To whom was the check written: don't answer on the board, just write it down
2. Was the check ever paid by your bank?
2a. If yes, contact bank and find out if this is the total debt you owe them. If it is pay it and keep the receipt. If not find out what you owe, pay it and keep the receipt.
2b. If not, collector is most likely acting for the original merchant and you have to pay the collector.

DC

That helps some. The original merchant being the place I wrote the check to... That makes sense. The place I wrote the check to is listed as the original creditor on their letter.

Here's where it gets tricky...

The bank says we owe $500 for the following:
$55 Check
$75 Check
$115 Check <---- The one I got the letter for
$55 Check
$100 Withdrawl
$100 Fees

Granted, these aren't the real numbers, but you get the idea.

Now, it never really says whether or not the bank paid the checks... If they are charging me the $115 for the check, I would assume that means they paid it... Correct? I mean, it specifically says "Check 1000"

Now, say I pay this $115 to the bank, which covers this check... I understand that I still owe for the rest, but I don't have to pay that $115 to the bank AND to the collector, right?

The way it's listed, it's as if the checks cleared, but there was no money in the bank... That's what's confusing... If they had been paid by the bank, I wouldn't be getting the letter from the collections place representing the place I wrote the check to. If they hadn't paid it, I wouldn't see $115 withdrawn for a check... I would see fees.

Thanks for the help so far... It's getting less confusing.

-Bill