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January 16, 2007
credit consequences of bill dispute
Please advise. I thought there was an electrical problem with my thermostat and had an electrical company come out to take a look. It turned out to be a problem with the heater itself, and they said they could fix it but I told them that if the work would run above 300. they should let me know since it would make more sense to have a heating company do it. I didn't sign anything with them, and they sent a few people and it was very hard to tell how they were logging their time, though in the end did fix the heater by replacing a part. Then they presented me with a labor bill for almost 600. and said that if I didn't pay it they would turn it over to a collection agency.
I think it's fair that I pay something, but I feel like they deliberately just hit me with a bill at the end that is quite inflated.
Does anyone know if they can indeed turn this over to a collection agency (that could presumably damage my credit)?
In which case I would just have to pay their full bill amount which is way too high.
Any advise about what I can do in the way of filing a complaint or placing this in dispute before the creditors are involved?
Thanks in advance.
Comments
I'm not an expert on this but I think they are trying to scare you more than anything. It's my understanding that for a collection agency to take this there would need to be a judgement by the court or an agreement that you signed which would allow them to bill you and then refer any unpaid bills to a collection agency.
If there was a contract their recourse would be to put a lien on the property but there isn't even a contract. In fact the verbal agreement that you have was only up to $300 and this is more.
They can take you to small claims court and then you can explain the $300 thing and they will have no proof to dispute this claim. My guess is that the judge would order you to pay $300.
I would call the owner/manager and explain that you clearly communicated that if it was more than $300 you didn't want them to do the work and that you are willing to pay $300 and no more.
Don't let them bully you with empty threats. If they don't agree, contact the BBB to help resolve the issue. This often works wonders.
Posted by: Anonymous at January 16, 2007 1:59 PM
Any one can dispute a bill; however, if the work was indeed done and no payment has been made the contractor can and usually will place a lien on the property. Which means nothing unless you want to sell.
Posted by: Anonymous at January 16, 2007 4:14 PM
Just my 2cents: Boiler/heater controls have gone up about 400% in the past 18 months. I do not know what was replaced or repaired but $600 does not seem too out of control when a gas flow vavle can and does run $350. wholesale. Again just my 2cents.
Posted by: Anonymous at January 16, 2007 4:18 PM
I agree with the above poster. $600 seems like an unremarkable bill for fixing your heat.
The dispute seems to be that there was no quote given up front and that you specifically instructed them not to exceed $300 without approval. It would appear that they misunderstood you, intentionally or inadvertantly.
If you are a homeowner they can put what is called a mechanic's lien on your title for nonpayment. This is relatively easy to do, all they have to do is file and get a default judgment. This happens all the time. The lien creates an encumberance on your title preventing you from selling or refinancing your property.
If the matter is referred to a collections agency, then the agency may report you to the credit bureaus affecting your credit score.
Posted by: Anonymous at January 16, 2007 5:04 PM
The part cost only $25 or so. The issue, as the last poster picked up on, is that I very clearly told them that I did not want them to do the work if they would exceed 300. They are an electrical company we called first because we thought it was a wiring problem with the thermostat, but if it was anything beyond a simple repair I would have wanted a professional heating company to do it, preferably one familiar with this particular kind of heater.
They deliberately didn't keep their word and then hit us will a bill for twice as much at the end.
Now I see why they did, if what you're saying is right - they can present an inflated bill even if I did not sign off on anything, and I will be forced to pay it. Otherwise it will be my headache dealing with the credit problem, lien, etc..
I think I will file a complaint with the BBB in any case.
Posted by: Anonymous at January 17, 2007 4:58 PM
1) do you know any lawyers? You might be able to send them a letter stating you reject this bill and possibly start a small claims action against them. I am not totally familar with the law on this but i would investigate it.
2) if they do send the bill over to a collections agency, you do have some recourse. You can call up the credit bureaus after it hits your credit report and dispute the claim. The responsibility falls on the collections agency to prove you owe this money and most collections agencies are not equipped to handle that. (i have done this with other debts i had and it worked great). Once that happens the claim will be dropped from your credit report. You might still get calls from the collections agency but since its not on your credit report just ignore it.
Posted by: Anonymous at January 17, 2007 5:44 PM
How could this affect your credit rating? You weren't stupid enough to give them your ss # were you? (what a bunch of candy asses, i can't beleive these people actually own real estate)
Posted by: Anonymous at January 17, 2007 8:24 PM
Huh?
Posted by: Anonymous at January 17, 2007 9:06 PM
8.24, I've got news for you-- you don't need to give anyone your SSN in order for them to track you down.
Give me your name and address and I'll get your ssn off the internet in five minutes...and a whole lot of other info on you too. Who's being naive now?
Posted by: Anonymous at January 18, 2007 10:53 AM
Welcome to the information age, Anonymous (and extra points for your brilliant use of "candyass"). Yeesh.
Posted by: Anonymous at January 18, 2007 11:53 AM
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