$12US, annoying and unbelievable story (need advice)

[Gumblackwood]

ok, I need some advice, or rather my fiance needs some advice and isn't willing to ask for it.

Seems a while back, before she even met me, she began receiving a magazine in the mail for some unknown reason. She liked the magazine, but she never in fact ordered it. She even asked around to see if someone had given her a gift subscription, but no one would admit to it.

Well, more recently, after receiving the magazine for months, apparently for free, as there was no subscription bills or reorder slips attached, she received a rather curt slip of paper in the mail from Hearst Corporation, the publishers of the magazine, demanding (but rather politely) the 12 dollars for her subscription, which she had never paid despite ordering the magazine. She ignored it, rationalizing that she shouldn't pay for something that she didn't order and was never informed she would have to pay for.

I suggested calling up and disputing the charge, but the letter had no means of contacting anyone in it, other than the address to pay them.

It's been a number of months, and letters with more and more red in them keep coming, and even somehow followed us after a move, and never with a contact number or any option other than paying. The latest one says that the 12 dollar charge has been handed over to a collections agency and that they would pursue it. It has a number, but I doubt it's one that we could call to dispute the claim.

It seems annoying and unbelievable all at once. I'm all for calling them up and attempting to dispute it, but the number is long distance and doesn't appear toll free. Another option I've considered is just paying it for her, but it seems like the subscription may begin again if I actually do (as it said in the early letters), and I don't want to go through this again in another 6 months because the magazine hasn't given us a chance to unsubscribe, despite never being subsribed in the first place.

We could use almost any advice here, it's gotten far too annoying for me. I doubt my fiance wants this to go on much longer either.[/i]

[Serresrelic]

If there truly is no contact information whatsoever, then you can file a complaint with the BBB and your State Attorney General.

However, make sure you've checked over everywhere for contact information. Nothing in the magazine? In small writing on the inside or outside of the front or back cover?

Doing nothing in this situation is probably the worst thing you could do. If someone claims you owe them money and you don't pay them or make an attempt to contact them, then they will send you to collections, which ruins your credit. It's always best to make every effort possible to dispute, or at the very least contact the company who is sending you bills.

You also need to be careful about what your state laws are regarding such things. Even if you didn't order the magazine, some state laws state that by accepting the magazine and not attempting to cancel for such a long period of time, you in essence are accepting the subscription service and therefore owe them the money (happened to me here in Washington about 5 years ago).

Either way, getting taken to collections is bad. I would much rather pay the $12 and then attempt to contact them, than get sent to collections.

[Mr. Binkybear]

Inside the magazine, look for a publisher. By law, they must put contact information, including a physical address, and phone number. I'd suggest calling them. The collection agency isn't going to do anything but demand the money.

[Koskun]

This is a known scam. I honestly can't remember all the details of how they go about getting it started, it could have been something she signed up for on a site, or even something like Publishers Clearinghouse, and someone sold the mailing list.

As to fighting it, that is tough. It is very hard to prove that you did not sign up for something. You could consult a lawyer, but will end up spending more than it is worth.

I would check the publishers listing in the magazine (as has been siggested), contact them, as well as get a hold of the Better Buisness Bureaus and reporting them and seeing if there are other complaints. I also would contact the Attorney General of your state and the state that the magazine is in. If the company of the magazine is behind it they could have something on file, and may be able to help you out.

[Darth Lorax]

If this does show up on her credit report file a dispute with the credit reporting agencies (there are three major ones I believe). In the US it's up to the creditor to prove that you owe the money. If they can't then they have to clear your credit report. I've had something kind of like this happen to me. They might try to pass off some phony paperwork but I bet they're hopping most people will just roll over and pay. Don't do that! It will just encourage them to keep doing it.

[Lirren]

Forget the BBB. Contact the Federal Trade Commission. They will send you a form you can use to dispute the charge. Send a copy of your letter to the magazine company at the billing address and a copy to the FTC.

I had something similar happen to me with a charge being put on my credit report that I wasn't responsible for. I sent a copy of a complaint letter to the FTC and the company as well as filling out a fairly long form for the FTC. The company threw out the charge and had it removed from my credit report within a week.

[Kaylen]

On a slightly related note, pre paid legal (http://prepaidlegal.com) is like legal insurance. You'd be able to get free consultation for problems like this.

Since it's already at collections, I'd consider paying it if you can't find a way to contact them immediatly. I don't know that much about credit, however.

[HyfighStereo]

Here's the deal. I am a debt collector for a collection agency. You can contact an attorney if you can absolutely not find any information about the laws pertaining to this subject, and most attorneys will give you an hour consultation for free. I personally would suggest avoiding pre paid legal as to be frank, they don't know their asses from a hole in the ground. What you SHOULD be doing is:

*****DOCUMENT ANY CONTACT YOU MAKE WITH ANYONE IN REGARDS TO THIS MATTER (TIMES, DATES, NAMES, NUMBERS)*******

*****DO NOT GIVE OUT ANY MORE INFORMATION THAN WHAT THEY ALREADY HAVE ON FILE (PHONE NUMBERS, ADDRESSES, PLACES OF EMPLOYMENT, NAMES, SOCIAL SECURITY NUMBERS)******

1) Write up a dispute letter requesting verification of the contract you (your fiance in this case) signed to start the subscription. If that can not be provided request that they provide the law that states that an implied contract is in place and that in your state of residence implied contracts are valid. Send copies of this dispute letter to both the publisher AND the collection agency.

2) Call the collection agency to inform them that you have very little contact information for the origonal creditor and that you would like verfication of the debt. Make sure you state very clearly that you want "VERIFICATION" in the form of a signed contract or something siting the law that says an implied contract is valid in your state (just like up top, but this is verbal of course) Ask the collection agency how much time you will have before they decide they are going to report this onto you credit bureau report. Also ask them what credit reporting agencies they pla to report to as you may be disputing the bill. Again, DO NOT give them any information, just simply verify. Nothing can be reported accurately to a credit report without SS#'s, addresses, and phone numbers. The less information, the easier it is to dispute.

3) Wait for their response(s) from your dispute. If they can not provide appropriate information (the signed contract or, depending on the state, siting of the law for implied contracts) within a reasonable amount of time (reasonable amount of time is a problematic term because it can mean a different amount of time for everyone. Generally 90 days is PLENTY of time and they are not able to report onto you're credit report until the debt has been validated) contact the collection agency once again by phone and tell them that since the information you requested was not provided in a timely fashion the bill is not valid.

4) Do as above in writing to the collection agency. Tell them that since the debt was not validated it will not show on your CBR and if it does that will be in violation of the FDCPA and you will take legal action.

5) Have your fiance pull her CBR's (Credit Bureau Report) from the 3 major agencies (Equifax, TransUnion, Experian- it can be done for FREE once every 365 days, or a calender year) after about another 4 to 6 months has transpired to check for that account.

**IF THE ACCOUNT SHOWS ON YOUR CBR**

6) Contact an attorney and ask who they would recommend to represent you in a suit regarding a violation of the FDCPA and go from there.

Again, make sure you document EVERYTHING and if at all possible record phone calls. You don't have to tell the other party that the call is being recorded (law may be different in your state so look into it first) if one party has already consented to the recording (you in this case). Make copies of all documents you have sent and file both the stuff you sent and items you have received.

If you (or any readers for that matter) have any questions about the information provided, please just PM and I'll get back to you ASAP (should be within a day).

**edit-some grammar and would like to add information**

If you do indeed decide to pay I would suggest that you do so in the form of certified funds (money order, cashiers check) and enclose a request for receipt of the payment. Try to avoid indicating on the payment that the amount is for 'payment in full' as some agencies will not cash the payment.

These rules are ONLY for things you are disputing. If you know you owe the bill (example- it's a medical bill that you know you saw the doctor for) then simply comply with whatever the collection agency asks. The more willing you are to work with them (being polite and giving information) the easier they SHOULD BE to help you make affordable payments.

As for your credit being ruined, unlikely. $12.00 isn't a lot of money and shouldn't affect your credit score a whole lot.