Were you contacted by a debt collector about a check you wrote, but it didn’t clear?
Did you get a letter from TRS Recovery Services, Certegy, Telecheck, I.C. System, or some other debt collector, demanding that you pay service charges or other collection fees?
These companies are in the business of collecting unpaid checks.
If one of these companies sends you a letter, they will typically demand that you pay the check amount, plus a service charge, and possibly other fees. Sometimes the law allows the debt collector to recover these fees. Many times, the fees are illegal. We have recovered millions of dollars for consumers who have been tricked into paying check service charges and fees they did not owe.
If you wrote a check that was not paid by your bank, you may owe a service charge that is authorized by state law. However, in many states, before asking for these fees, the debt collector has to follow specific procedures to give the check writer notice and an opportunity to pay. Sometimes, to be entitled to service charges or damages, the check recipient must send a letter by certified mail. In some states, such as Pennsylvania and Massachusetts, there is no statute at all specifically authorizing check service charges. In these states, debt collectors may be breaking the law just by asking you to pay a service charge.
We cannot tell without looking at the letter you received whether a debt collector is trying to take advantage of you. But, if you received a letter from a debt collector and have questions about the fees and service charges you are being told to pay, contact us.