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Home >> Accounts >> Checking Accounts
This Collection Agency Sounds Fishy
A friend of mind closed a checking account three years ago and now a collection agency is saying she owes over $900 in fees. This checking account was only used to cash paychecks; no money was ever taken out or put in except initially. When she called the collection agency, they said they would drop $600 if she agreed to pay $300. It sounds like a scam to me. I used to work at a bank, and when the account was overdrawn for fees only, we closed the account. What should she do?
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 There could be a deliberate scam here, or an attempt to collect a debt that is due to a bank error. The debt could also be genuine, based on the deposit contract on the old account. The fact that the debt collector almost immediately offered to settle for half the alleged debt makes it suspicious.
Your friend should ask for proof in writing of the obligation, confirmed by the bank that held the old account. If that is produced, she might be wise to attempt to come to an agreement with the bank, rather than work with the collection agency. She might even be able to convince the bank that she had believed the account to be closed and that the fees should not be her responsibility.
If the collection agency can't provide any documentation that she owes the money or any part of it, she might be tempted to let the matter drop. She should contact the bank, make sure she doesn't owe it anything, and ask the bank to confirm that fact in writing. In that way, she'll have ammunition for the debt collection company if it should decide to contact her again. She can also consider filing a complaint with the Federal Trade Commission.
Published on BankingQuestions.com 2/13/09
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