Is a verbal assurance legally binding?
Question Details: I was a nursing student at a university. I withdrew by sending a withdrawal form by FAX. They sent me an invoice for a balance amount of $575. When we called them the same day, they said they were sorry, they thought I was a foreign student; as a local student there was no need for me to pay. We then assumed the matter was closed. However, now after 7 months, they suddenly sent our case to collections without informing us. Does this affect our credit rating? Do I have to pay first and dispute later? They are asking for $771, with collection fees.
Check your credit score first. If you see the debt listed, you should contact all three major credit reporting agencies and inform them that you are disputing the debt (this should be in writing and sent by Certified Mail). Your next step is to write to the University, and inform them of their previous error. If you pay this debt upfront, you are going to have a hard time getting your money back. If they back down and say it was their fault again, get documentation from the University admitting as much. If there is no resolution, be prepared to defend yourself in small claims court at some time in the future. Your best defense will be documentation of everything. Good luck!
