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Collections Law/auto pay credit card pmt never charged
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Question
Due to software conversion problems we had a group of customers on auto pay credit card who where billed, but their credit card was never charged (in January). We discovered in November that the system posted their account as paid in January even though we never received the Cash and their card was not charged. By law, what can we do to collect these outstanding charges for electric utilities. We can prove that the services were rendered and that payment was not received.
You may need to seek local counsel to confirm but you should first send written notice of the error and give a date for the new debit then go ahead and set up a one time debit of their account for this particular payment. Then you may resume with the automatic billing/payments for future payments as scheduled. As long as you provide notice and disclose that their was an error you should have no problem. However, you will probably be receiving some complaints or calls concerning this from customers so be prepared to field those calls to further explain the problem. You have a legal right to collect your money and errors sometimes do happen, human or technological and you have to do what you have to do to correct the problem.
The question for your company is whether it is worth it to have to go through all this. Is it a substantial amount of money or would you be better off biting the bullet and moving on?
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| Rating(1-10) | Knowledgeability = 10 | Clarity of Response = 10 | Politeness = 10 |
| Comment | Couldn't be more pleased with the completeness of the answer and also consideration given to possible consequences that should be weighed | ||
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Answers by Expert:
Michael Brotherton
Expertise
Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. Mike is well versed in Loss Mitigation practices and the legal collection process. He has helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. FinancialEmergency.com is a consumer web site which actively promotes Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).
Experience
Over 40 years combined experience negotiating disputes and resolving financial issues related to consumer debt, corporate issues and mortgage modifications.
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