ย #InsuranceIssues #DebtCollector #SmallClaimsCourt
Hey everyone! ๐๐ธ Have you ever had an insurance company send a bill to a debt collector, only to have them claim you still owe the amount even after you paid? I recently had this happen to me and I’m wondering if it’s worth pursuing in small claims court.
Here’s a quick rundown of my situation:
– I cancelled my car insurance policy two years ago and was told I owed $244.55 as a final payment.
– I forgot to pay them, so they sent it to a debt collector.
– I paid the debt collector the full amount owed and it was marked as paid on my credit report.
– Recently, the insurance company sent me a check for $112.50 instead of the $302 they claimed I was owed because they say I still owe $244.55.
I’ve called the insurance company multiple times and even had the debt collector confirm I paid in full, but they’re still giving me the runaround.
Do you think I should take this to small claims court if they continue to insist I owe them money? Or do you have any other suggestions on how to handle this situation? Let me know your thoughts and any advice you might have! ๐ค๐ญ
This is classic double dipping. I had the same thing with geico, they send to collections and never remove it from their system, they sold that debt to collections so you owe them nothing.
Under the Fair Credit Reporting Act (FCRA) there are fee shifting provisions that allow for any attorney to bill the defendant (I.E. credit bureau) for attorney fees if you sue to have your credit report corrected.
The FCRA regulates how your information is shared with potential lenders, and it allows for you to dispute the error being reported so that your credit report is fixed. If the credit bureau doesn’t fix the disputed information, then you can sue them to have your credit report corrected (and there are no out of pocket costs to you).
DO NOT DISPUTE ONLINE. Some reporting agencies require you to agree to certain terms and conditions that limit your rights to sue them for inaccurate reporting if they don’t fix the disputed information.
I’m not a lawyer, but you can probably find a consumer attorney in your area.
It will be resolved within a week. The gears move slowly and the left hand usually doesnโt know what the right hand is doing in the insurance industry.
Or complain to the insurance commissioner.