Question by Okay F: Collections and FDCPA – 180 Days law?
I had an account with 1&1 (webhost). They had my credit card information which was on autopay. However, in August I moved and so they couldn’t charge my card for $ 30. Within 2 weeks of my $ 30 payment being late, they turned over my account to a collection agency which now shows on my credit report. I was wondering if their move was legal? Someone told me that they couldn’t legally turn over a debt to the collection agency unless 180 days had passed. Also, they never told me that my account was going to be turned over to the collection agency unless I paid immediately. Thank you for your help.
Answer by Matthew B
while your state may have specific rules covering this situation, there is nothing in the FDCPA that lists a minimum time frame prior to rolling it to a collection agency for follow up.
Purely speculation but 1&1 may have viewed this in the same category as a bounced check and just automatically route all of those out for collections.
I’d give them a call and give them a “hey, WTF?” and see how they respond.
What do you think? Answer below!