UPDATE Bill I Did Not Know About Sent to Collections - Grrrrr!

[lucyem]

I had service done on our furnace in the fall of 2009.  For whatever reason I did not pay the invoice (if I even got one).  I never got another invoice.  Nothing with interest charges, nothing.  So I forgot or never realized.  Had I received one, or even one with interest charges a month overdue I would certainly have paid it right away.  

In March of 2010 I had more work done by the same company.  One would have thought they would have refused to do the work since I supposedly had the outstanding invoice from 2009.  Or would have put it on the bill at least.  But no, nothing.  

Fast forward to last week I get a letter and a phone call from a collections agency telling me I owed the company.  Not only the original bill but 18 months of interest!  I called and got the office and was told "we send invoices every month".  I checked their address for me on file and it was correct.  She sent an invoice to me and I had it the next day.  I tried explaining to her I never received an invoice and she kept saying "we send them monthly".  

So now I am composing a letter explaining this.  I guess I have to pay the interest charges but will ask for some back.  I am want to explain while their work is good that I will have to look elsewhere for a furnace repair service.  I wish I was better at this kind of thing.

[monkey's mom]

I would ask to see their copies of the correspondence to you.

We run a small construction business and when it gets to the point of sending out invoices w/ collection letters (basically threatening legal action) I always send them via return receipt (so someone has to sign for them at the residence) AND keep a photo copy of each and every letter sent.

[velochic]

I would push back on this.  They have to prove that you received the letters/invoices.  If you're sure you didn't pay it, perhaps you can send a certified letter stating that you will pay the original amount, but not interest and that if they pursue this, you will take them to small claims court.  The burden of proof will have to be on them and the fact that they have given you service since then is a compelling factor that they were as unaware of the unpaid bill as you were.  Hopefully that will be enough that they'll be willing to "call it even" if you pay them.  Good luck!
 

Originally Posted by lucyem 

I had service done on our furnace in the fall of 2009.  For whatever reason I did not pay the invoice (if I even got one).  I never got another invoice.  Nothing with interest charges, nothing.  So I forgot or never realized.  Had I received one, or even one with interest charges a month overdue I would certainly have paid it right away.  

In March of 2010 I had more work done by the same company.  One would have thought they would have refused to do the work since I supposedly had the outstanding invoice from 2009.  Or would have put it on the bill at least.  But no, nothing.  

Fast forward to last week I get a letter and a phone call from a collections agency telling me I owed the company.  Not only the original bill but 18 months of interest!  I called and got the office and was told "we send invoices every month".  I checked their address for me on file and it was correct.  She sent an invoice to me and I had it the next day.  I tried explaining to her I never received an invoice and she kept saying "we send them monthly".  

So now I am composing a letter explaining this.  I guess I have to pay the interest charges but will ask for some back.  I am want to explain while their work is good that I will have to look elsewhere for a furnace repair service.  I wish I was better at this kind of thing.

[crunchy_mommy]

Originally Posted by velochic 

I would push back on this.  They have to prove that you received the letters/invoices.  If you're sure you didn't pay it, perhaps you can send a certified letter stating that you will pay the original amount, but not interest and that if they pursue this, you will take them to small claims court.  The burden of proof will have to be on them and the fact that they have given you service since then is a compelling factor that they were as unaware of the unpaid bill as you were.  Hopefully that will be enough that they'll be willing to "call it even" if you pay them.  Good luck!
 

I would pay the bill itself (unless you think you already paid it back in 2009, check your check register) but not the interest. Write them your letter explaining why. If they give you a hard time on it, the Better Business Bureau may be one route to go...

[mattemma04]

I would make a deal and perhaps pay some of the interest.Generally you get a bill when service is completed. If you did not  get one that day or in 2 weeks then it was your responsibility to call and ask what you owe.

I call places when I do not get a bill. Hopefully they will offer a deal,but legally you were responsible for the bill. Even if they did not send a invoice monthly you still knew you never paid,and just let is slide for 2 years.

[lucyem]

Originally Posted by mattemma04 

 Even if they did not send a invoice monthly you still knew you never paid,and just let is slide for 2 years.

I did not know I never paid it until the collections told me I did not. 

[lucyem]

I wrote a letter and decided to just point out my frustration at being told I owned money by a collections agency and not them.  I pointed out the work they had done for me since even when I owed money.  I also explained the lack of invoices etc.  I did not say I would use someone else from now on and avoided any harsh words.  I tried to state just the facts and that in the future they maybe need to look closely at their computer system and how they deal with unpaid bills before calling collections.  I wrote a check for the full amount including all the interest.  Today I received an apology note from the new billing person along with a check for the full amount of interest.  She does not know what happened but agrees I should have been notified  by phone and letter before they called collections.  Instead they have been relying on an invoice system that automatically prints all invoices and no one checks to see if they all printed.  She also does not understand why they kept doing work when I had an overdue bill.  She also pointed out we have always been good customers.  

I was surprised at the full amount of the interest returned but very appreciative.  

[crunchy_mommy]

Great update!!! Just make sure if you haven't already that this won't negatively affect your credit report. Glad to hear it sounds like it all worked out!

[velochic]

Glad it worked out... but I agree with Crunchy... make sure that the past-due bill doesn't appear on your credit report.  I'd keep a close eye for a few years, even.

[RosieL]

Originally Posted by lucyem 

I wrote a letter and decided to just point out my frustration at being told I owned money by a collections agency and not them.  I pointed out the work they had done for me since even when I owed money.  I also explained the lack of invoices etc.  I did not say I would use someone else from now on and avoided any harsh words.  I tried to state just the facts and that in the future they maybe need to look closely at their computer system and how they deal with unpaid bills before calling collections.  I wrote a check for the full amount including all the interest.  Today I received an apology note from the new billing person along with a check for the full amount of interest.  She does not know what happened but agrees I should have been notified  by phone and letter before they called collections.  Instead they have been relying on an invoice system that automatically prints all invoices and no one checks to see if they all printed.  She also does not understand why they kept doing work when I had an overdue bill.  She also pointed out we have always been good customers.  

I was surprised at the full amount of the interest returned but very appreciative.  

This is great to hear! You should consider writing a review for the business on Yelp or some other review site like it. I love hearing about good outcomes! Kudos to you for keeping your cool head, as well.