Expert: Michael Brotherton - 9/15/2007

Question
In June I was not able to afford my apartment anymore. I set up a payment
plan with the apartment community so I would not be turned over to
collections. I paid Them $30 per month. In August I was turned over to
collections but I did not know anything about it until after I made my Sept
payment. I recieved a phone call from the collection agency stated we have
been turned over due to none payment which is NOT true. I would like to
know if they are allowed to turn me over to collections since I have been
very faithful at paying them each month?  I would also like to know what I
am suppose to do about it now? The collections agency has told me that if i
do not pay them they will bring my credit score down 100 points and it will
be on my credit report for 7 years.  Which to me makes me utterly upset b/c
I made the payment plan so i would not be put into collections.

Answer
My first question is Did you get the agreement in writing? If so you can file a complaint with the Federal Trade Commission or file a suit against the apartment complex. If not they can probably turn it over. Although unfair, the account is delinquent and they can do what they need to collect the money.

Depending on the amount owed you may not have much to fear from them other than being an annoyance. Continue to pay the $30 per month directly to the apartment complex. Send the collection agency a cease and desist phone contact letter by certified mail, return receipt requested, along with a letter advising them you intend on paying according to the agreement you made with the complex. Keep making payments and document all contact in case they try to sue you. Keep in mind collection agencies are collectors. They don't usually file suit. Their bark is usually worse than their bite.