Expert: Michael Brotherton - 5/8/2007

Question
Hi - In October 2006, my step son wrecked my car. I had full coverage through Country Insurance. I filed a police report and submitted a claim. They sent an adjustor to the body shop and then authorized the repairs. I was very unhappy with the service so I cancelled my policy with them in Feb 2007.
After I cancelled the policy, I got a letter saying that some of the repairs that they had made were not caused by the accident. So, I owed them money approximately $500.
I wrote a letter back and said that they authorized the repairs to the car - not me - and that I did not feel I owed them anything for their mistake. I also reiterated how disappointed I was in the repairs and in their service. I asked them to let me know if they were going to pursue so I could contact my attorney.
I never heard anything else from Country.
Starting last week, I began receiving phone calls from a collections agency and today I received a letter stating that Country had forwarded my "bad debt" to a recovery company and that I need to make payment immediately.
I still contend that I do not owe this money and cannot believe they sent me to collections.
I have a very clean credit report and a FICO of 720. I am very worried that this will ruin my credit but I do not want to pay Country either.
What do I do next?
Thanks in advance for your help!
Summer

Answer
By federal law you can dispute the debt in writing and they must verify you owe the debt. If they do not provide proof and they pursue legal action you can defend yourself. They did the assessment and paid for the repairs. Unless they can substantiate their claims they have no case.

You may need to consult an attorney to find out the legal ramifications. I believe it is too late for them to ask for money back but that may be something for an attorney.