Can I be sent to collections?

UPDATED: Sep 30, 2022

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Can I be sent to collections?

I had signed a contract a year ago that I did not have a copy of. It stated that I was to cancel services by the 20th of the month or be charged for the next month. Then 6 months ago, I cancelled on the 23rd. I was told I had to pay. I did not use the services, paid, then disputed the charge with my bank a month later. The company had 2 months to respond to my dispute; it did not. The following month, I got an email demanding payment, accusing me of stealing, stating I need to pay the original fee and late fees or be sent to collections within 10 days. Is this allowed?

Asked on August 11, 2017 under Business Law, New Hampshire


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

According to what you write, you did not cancel properly: you signed a contract stating you had to cancel by the 20th, but you instead cancelled by the 23rd. You therefore breached or violated the contract. It does not matter if you did not use the services--you agreed to pay for them if you failed to cancel by the 20th, and that is your obligation. You had no lawful grounds for the dispute, and the company is contractually entitled to be paid for the month.  They could send you to collections and/or sue you.

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