Expert: Creditwrench - 9/9/2009

Question
I received a call from two relatives today regarding an unidentified number calling them about receiving a summons and whatnot.  They left a number with them, so I called the number to see what was up, figuring it had to do with me since they mentioned my name.

The man I spoke to worked for a collection agency, although I did not realize it at the time.  (I had tried to Google the number, but no real results popped up.)  He said that there was a process server trying to locate myself and my two references, from an old payday advance, regarding two criminal charges resulting from this debt, one being worthless check because my e-check didn't clear through, and the other being fraud to a bank because 11 months after the fact, I had closed out my bank account.  

I told him that I thought he was full of it because I had worked in the criminal justice system for a number of years, and if there was really a pending criminal case, it would be the State's job to file charges and the deputy's job to subpoena (or arrest) me.  He then back-stepped and was like, "No, no, I never said that, I never said those words, I just said it's a possibility."  

To avoid my family any more bothersome calls and because at the time I was unsure about the "possible criminal charges" part of it, I agreed to pay it and set up payment arrangements.  They also told me they were tacking on over $300 for attorney/processing fees I believe.  

After doing more internet research, I've learned this is nothing more than a ploy to collect money.  I guess my question is, are they overcharging me legally?  A lot of the research I read says they can't do that.  And if so, should I be calling them back and canceling?

Also, I doubt this makes a difference to the answer, but I did end up reporting the company to the FTC and to my state's Attorney General's Office.

Answer
Yes, they can do it legally. Too bad you didn't have a voice recorder working at the time because it might have been possible to file a federal case against them for those statements. As it is, it would just be your word against theirs and that wouldn't be likely to go anywhere. I wouldn't ever call them.