Collection Agency

[Moon2]

I moved from Texas to Pennsylvania and when I reg. my vehicles I got new ins. and dropped my old ins. co. I recieved a collection for 114.00. I called the collection co. I told them I had new ins and why would I owe if I cancelled. By the way, you pay ins. for the month ahead. So even if I didnt pay all they would do is cancel my ins. Right? Your coverage stops if you dont pay. The lady on the phone didnt understand it either after I explained it to her. I agreed to send them my declaration papers on my new ins. to prove when I changed over. I stopped with them in June and they were charging me for July. I recieved another bill from the collection co. for $34. Now they say the ins. co. reimburst me for $80 but I still owed a cancellation fee. I have never paid a canellation fee for cancelling ins. Again the lady on the phone agreed with me, but then stated so can you pay this today. I told her I wasnt and she politely told me that she would hate to see this hurt my credit report. Also, she said they would settle for a payment of $27. How do I refuse to pay I dont want to take a hit on my credit report even if I dont owe them anything.

 

[army judge]

Apparently, as far as they are concerned they won't let you off the hook for less than $30. It'll cost you far more to fight these crooks. Most people, that I know, pay for their insurance annually (or semi-annually). Sounds as if these scam artists have you over a barrel. You might file a complaint with the State of Texas insurance department. Or, ask them to send you a letter indicating that they'd take the $30 as an offer in compromise. Then give them their tribute and be done with them. Or, you might ask to speak with a manager and see if he/she can make you a better offer.


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[tpajet]

I would contact the insurance commissioner's office in Texas and see what they have to say. I had a sticky mess with my insurance (paperwork snafu from pervious insurance) and my then current company was trying to charge me more. They were not willing to budge.....until the state got involved, then they were quite accommodating.

 

[mightymoose]

$30 will make the problem go away fast.

I wouldn't pay it though... screw 'em. If it showed up on my credit report I would simply dispute it. Some well placed phone calls and some letter writing should take care of it.

 

[Moon2]

Thanks for your help. I'm sending a complaint to the texas ins. dept. See what they have to say.