Got a collection letter

[jessyclk]

I have purchased a hosting/domain package from 1&1 last year. They apparently bill half of the package every 6 months, so they billed my account last year and they have tried to bill it again this February. The transaction was refused by mY bank (not sure if it was due to funds insufficiency or some other reason) but nevertheless I have never received any communication regading the payment issue. Up until today when I received two separate letters from NCO Financial Systems, collecting $42.89 on behalf of 1&1. I called 1&1 to ask them what is the situation and they have told me that they tried billing me, the transaction was refused and they have emailed me an Invoice. I never got the email, the payment was not received so they have sent the debt to the agency.

How can I get this taken care of without having a 7-year collection record on my report? The letter came in two days ago, dating 25th of June. It states that if the debt is not repaid in full within 30 days, they will consider it a valid debt. What does that mean and what should I do?

[jjgross]

Originally Posted by jessyclk

I have purchased a hosting/domain package from 1&1 last year. They apparently bill half of the package every 6 months, so they billed my account last year and they have tried to bill it again this February. The transaction was refused by mY bank (not sure if it was due to funds insufficiency or some other reason) but nevertheless I have never received any communication regading the payment issue. Up until today when I received two separate letters from NCO Financial Systems, collecting $42.89 on behalf of 1&1. I called 1&1 to ask them what is the situation and they have told me that they tried billing me, the transaction was refused and they have emailed me an Invoice. I never got the email, the payment was not received so they have sent the debt to the agency.

How can I get this taken care of without having a 7-year collection record on my report? The letter came in two days ago, dating 25th of June. It states that if the debt is not repaid in full within 30 days, they will consider it a valid debt. What does that mean and what should I do?

You might contact your bank to find out why it was refused!Did you want what you bought?If you did then pay it.But you can dispute the debt.you need to look at the contract with the original collector.See what the fine print says,if it's a full year contract or 6 months?Are you still using it or ?:huh:

[jessyclk]

Their user agreement is 120 pages so I will have to research it now. It will probably come up that they are right of course. I do agree that it is a valid debt, and I would always be willing to pay for it if i knew that it exists. The problem is that I received no notification that there is an outstanding payment due and I didn't act on time. Now when it is in the hands of the collection agency, I want to make sure that it is handled without a mark on my report.

[improving]

Well, I use 1&1.com and though I don't have experience with it going to collections with them. I would still go back to 1&1.com first and explain that you never received the invoice by email and maybe you had forgotten to update your account through them possibly. At any rate (if you still want or need their service) ask them if you can PAY IT for them to DELETE IT from all credit reporting agencies since it was an error that simply was missed. Ask them to send you proof in writing that they'll delete it because it does not reflect how you handle your finances.

Hopefully this will clear it up and it is being handled early by yourself.

And again, if you want the service, pay 1&1.com directly - don't deal with the collection agency AT ALL! they are jerks and it will be very difficult to get it removed from report dealing with any CA.

[jessyclk]

Yes I spoke to them and they claim that they did email an Invoice. But you know how it is, there are filters / servers that could have bounced the email. I will try to talk them into getting it resolved without the agency. I just hope they are not in my report already.