Expert: Regan Shinski - 2/10/2010

Question
I went to Europe for three weeks and came back with $ 5800 phone bill. I called them to switch my services to international calling for time I was there. I made few phone calls and also wrote few text messages with my g1, but I did not use internet at all, didn’t check e-mails, maps or anything else. I also was under impression that I have unlimited data like on my regular plan, because nobody informed me any differently, therefore I was not worried for roaming. In Europe I used other phone and I had access to computer. When I called t-mobil about my bill they informed me that my automatic updates coast me 150, phone calls 100, texts 5 and rest of it was data service roaming charges.  I canceled my services and week later I got letter from collection agency “ER Solutions” So my question is if these charges can be valid?  And also want to know what can I do to defend myself from this huge bill?

Answer
This is difficult for me to address specifically because I don't have access to your bills or contracts.  The bottom line is if this billing practice was allowed under the service contract you signed, they are likely valid.

Assuming that is the case, your first step is to send a response letter to the collection agency within the thirty days mentioned in that letter.  Ask for "validation" under the Fair Debt Collection Practices Act (FDCPA).  Send it certified mail, return receipt requested.  If you want, you can ask that all future communications with you be in writing.  The goal here, is to get the collection agency in a violation of the FDCPA.  This violation of the law then becomes the basis to offset the debt of the bill.  With the large amount, it's going to be more difficult.  They will likely want to pursue this further, possibly even with a lawsuit against you.

Your other options are to negotiate a lower amount.  The collection agency is likely to be open to this.  Get any agreement in writing and make sure it includes all negative accounts will be deleted from your credit reports.

Another option is to file bankruptcy, but that is only recommended if you have VERY significant other debts.

Good luck,
Regan