Collection Agency - Relocation Expenses

Status
Not open for further replies.

mab_

New Member
I relocated with a company who provided me with relocation expenses. I also signed a statement which explained that, if I were to leave the company in less than 1 year, I would have to pay back 100% of the relocation expenses. I left after 11 months and as a result they are asking me to pay in full.

However, I'd like to dispute this because I also signed an offer letter stating that I accepted employment based on certain terms. These terms included the agreement noted above. Although, the terms that I signed and agreed to also included my salary and benefits package.

Toward the end of my first year, the company ran into financial trouble. As a result, it was about to implement company wide pay and benefit cuts. It is for this reason that I left the company. I feel that the contract became null and void as soon as the conditions (my salary and benefits) changed. (a year later after I left it went bankrupt)

Also, I have been contacted by a the third party collection agency through phone messages and mail requesting that I pay in full the amount owed ($11,000). In the most recent letter, they issued the following statement:
****PAYMENT IN FULL DUE IMMEDIATELY****
We have contacted you previously without success. When you incurred this obligation you assumed the responsibility to pay this account. We advise you to consult with your attorney regarding your liability.
To avoid further collection efforts and clear your record at this office, make check payable to the above-referenced creditor and direct your remittance to our office **immediately**.

1. What are my chances in winning this dispute and not having to pay back these expenses?
2. What course of action should I take if I'd like to contest the charges?
3. Will the agency back off if I explain the course of events?
4. Given the "attorney" comment above, do they have full intentions in taking this to matter to court?

Can someone please help?
 
1. Did the offer letter include any of the terms that were changed and which you are complaining about? But let's get specific -- did you get a notice that the terms had changed and that such a change in terms would breach the agreement in your offer letter? If you left before that happening, I'm not sure that you have an excuse although you could argue an "anticipatory breach" with questionable results. I won't get into details but much of the answer is in seeing the actual terms of all the written documents you have.

2. You should probably notify the collections company in writing that it is not a valid debt.

3. You should probably let the people at the collections company talk as to what proof they have that the debt is valid, e.g. contract, etc. They might not have any information and thus may drop trying to collect when they realize that it will be futile. You can point out that the company is bankrupt and this is a lost cause for them.

4. They might but collection companies will virtually always put in the strongest words legally possible to put some fear into you that they will go to court. Chances are very small that this will ever occur, especially with smaller amounts. This is an $11,000 amount, rather large, so best might be to dispute the debt and let them talk their way into understanding why going to court will be a no win situation for them.

Good luck to you and let us know how everything turns out.

mab said:
I relocated with a company who provided me with relocation expenses. I also signed a statement which explained that, if I were to leave the company in less than 1 year, I would have to pay back 100% of the relocation expenses. I left after 11 months and as a result they are asking me to pay in full.

However, I'd like to dispute this because I also signed an offer letter stating that I accepted employment based on certain terms. These terms included the agreement noted above. Although, the terms that I signed and agreed to also included my salary and benefits package.

Toward the end of my first year, the company ran into financial trouble. As a result, it was about to implement company wide pay and benefit cuts. It is for this reason that I left the company. I feel that the contract became null and void as soon as the conditions (my salary and benefits) changed. (a year later after I left it went bankrupt)

Also, I have been contacted by a the third party collection agency through phone messages and mail requesting that I pay in full the amount owed ($11,000). In the most recent letter, they issued the following statement:
****PAYMENT IN FULL DUE IMMEDIATELY****
We have contacted you previously without success. When you incurred this obligation you assumed the responsibility to pay this account. We advise you to consult with your attorney regarding your liability.
To avoid further collection efforts and clear your record at this office, make check payable to the above-referenced creditor and direct your remittance to our office **immediately**.

1. What are my chances in winning this dispute and not having to pay back these expenses?
2. What course of action should I take if I'd like to contest the charges?
3. Will the agency back off if I explain the course of events?
4. Given the "attorney" comment above, do they have full intentions in taking this to matter to court?

Can someone please help?
 
Status
Not open for further replies.
Back
Top