Can you be sent to Collections...

[Reyneth]

If something is not technically past due based on the statement you've received?

I was unable to pay my city taxes (it's an outrageously high %, IMO) in full this past spring. Put down what I could and had to wait until the end-of-the-year bonus to pay the rest.

Two weeks ago, I got a letter from a collection agency. Asking for $100+ more than the balance (I don't know if the amount I'd paid was counted in that or not). Problem was, my last statement from the City (with the correct balance) was not due until 12.31.

The City received their payment. The check was cashed. Stupid me didn't write "PIF" on the check. I just got a letter today (didn't check mail yesterday) from the agency thanking me for the "partial payment" and I need to call to set up a payment plan. I called and left a message on the general voicemail that the balance was PAID IN FULL according to the stub included that was sent by the City and before the due date on that stub, so as far as I am concerned, the matter is closed. And if they contacted me again, a complaint would be filed.

Do I have any grounds in this? UGH. I finally have my finances in order - with the exceptions of the big lump sums like this, there isn't that much to spare in my finances and I have no savings to speak of. So I am dependent upon when the big money comes in - and it's not always when the bill is due.

Thanks! I DO NOT want to be charged "extra" for the "services" of these collection people because that balance would have been paid when it was regardless of what they did or did not do.

[nhollywood]

I assume that you are in the US. Once a debt has been settled with someone (individual or company) you do not have to pay a collection company unless otherwise stated in an agreement between you and said party. The collection agency is hired by the company not you so as long as you are up to date with the City then the collection agency will need to see if they can resell your collection account back to the city.

[Reyneth]

Thanks! Had thought that was the case, but the new letter really threw me.

Do you think my thoughts that the difference in balance is due to the payment I did make to the city earlier and wasn't accounted for is correct - or can the agency legitimately charge an extra 25% or so on a debt? I know the agencies we use at my work charge a 25% fee on any recovery - but the balance that the party owes is the same, we absorb the costs of that fee.

I am also wondering if my accountant inadvertently contributed to this by increasing what I would have paid in the spring by $100 to get a head-start on this year's so I don't have as much next Spring. They can't enforce that one, I know, since that was a voluntary advance payment and not something that was technically due yet.

[nhollywood]

You should not have to pay any additional money that the collection agency has added. Your agreement is with the city and not the collection agency. If the collection agency calls again, then tell them that this debt is paid and they no longer have permission to contact you via phone. They should direct all questions to the city.

[Aethian]

Make sure to call city hall and talk to the department that does the tax payments. Or better yet go in with the letter.
Someone could have screwed up.