Q: In your previous
column (Collection agencys bark worse than its bite), you
noted that airlines sometimes send debit memos to collection
agencies even after you dispute the debit memos. How, then, should
we deal with a collection agency after it contacts us about a
disputed debit memo?
A:
The first step you should take is writing a letter to the
collection agency disputing the debit memo all over again. Do so
promptly. Dont let the debit memo sit for more than three weeks
before you send the letter.
You need to write
the letter because chances are that the airline did not forward
your dispute letter to the collection agency. Even if the airline
did forward it, chances are that no one at the collection agency
has focused on the fact that you have a defense.
Collection agencies
are set up to close cases quickly, without having to make
determinations about the validity of debts. Therefore, your dispute
letter will be a disappointment to the collection agency, which
will then probably take one of two tactics.
First, the
collector may simply refer your file back to the airline, in which
case you may never hear from the airline again. Remember that the
airline probably wrote off the debit memo to begin with, when it
referred the debit memo to the collection agency.
Second, the
collector may try to engage you by calling to discuss your dispute.
He may try to sympathize, warn you of dire consequences if you dont
pay anyway or even (though rarely) discuss the merits of your
dispute.
Take the call.
Stand your ground. Laugh at any threats.
The collector will eventually end the call, and chances are good
that you will never hear from him or her again. Many travel
agencies make a mistake by ignoring calls and letters about
disputed debit memos.
The only time it
may make sense to ignore a collection agency is the case where you
actually owe the money but cannot pay. Otherwise, the collector
will certainly get you to agree to installment payments and you may
well end up regretting having made that agreement.
If you ignore all
contacts, the collector will eventually give up, although it may
take months or years.
There are no
federal laws governing what tactics a collection agency must use
when collecting from a business. The Fair Debt Collection Practices
Act applies only to consumers. The Federal Trade Commission has
some rules applicable to collections from businesses but they are
not relevant to debit memos.
If you are an ASTA
member, you can find a dozen sample letters disputing debit memos
at www.astanet.com/members/center/re_agency_debit2.asp.
Mark Pestronk
is a Fairfax, Va.-based attorney specializing in travel law. He
answers your questions in the TravelWeekly.com Legal Ease forum. To contact Mark
directly, e-mail him at [email protected].