Expert: Chris Ebert - 6/4/2009

Question
My husband and I paid our all association dues on time (verified by bank wire transfer every month).  We just received a certified letter from ALS which stated that our property management company has given them the account to collect on 4 months of unpaid dues and late fees.  We have verified online through our bank that every one of these payments have been made.  When we called ALS with this information, they looked it up and agreed that we have paid. BUT, they are asking us to send the money to close the account and in 7 days they will send us a check back.  What should we do?  Thanks for your help.

Answer
First, I would not send any money to the collection agency based on their promise to return it.

Second, I would go directly to your association with proof that you paid the dues on time. Tell them that they need to inform ALS that they made a mistake and to remove any derogatory information from your credit report (if being reported).

Ask your association to put in writing on their letterhead where the mistake was made so that way you have written documentation in the future.