Consumer complaint received 2019-03-11
Company: Collection Bureau of Kansas, Inc.
State: MO
Product: Debt collection
Sub-product: Other debt
Issue: False statements or representation
Sub-issue: Attempted to collect wrong amount

Complaint:
On or about XX/XX/XXXX, I had city utilities with the XXXX of XXXX which had been turned off due to nonpayment. At the same, my balance was approximately {$310.00}. I was in the process of moving and my utilities needed to be shut off and I had a deposit on file of I believe {$150.00} and another bill to be due in XXXX and was waiting for my final bill to arrive. 

On or about XX/XX/XXXX, I had received in the mail the final bill from the XXXX of XXXX where it showed an amount due of {$920.00} if paid by XX/XX/XXXX or {$950.00} if paid after. On the final bill, it showed a previous balance of {$310.00} and a current amount of {$610.00}. The {$610.00} and $ XXXX {$950.00} was crossed out by a pen with a handwritten note with " XXXX deposit applied '' and for the due date of XX/XX/XXXX the amount dues were crossed out for after due date and the by due date and one single amount was listed as " XXXX '' On XX/XX/XXXX I contacted Collection Bureau of Kansas , Inc. concerning a letter dated XX/XX/XXXX stating I owed the creditor XXXX of XXXX for the balance of {$940.00}. In the letter referenced, the first paragraph states, " Because interest continues to accrue, please contact this office for the exact payoff amount ... '' They told me the balance due which was {$940.00} I believe and I asked how come when the final bill was {$770.00} from XXXX. The woman explained to me that the balanced accrued a 10 % interest yearly. 

I had explained to her that in XXXX I had held the position of XXXX for the XXXX of XXXX and was familiar with their company. CBK came in and informed the board that they would go after old bills at no cost to the city because they would charge the customers the fees. I then requested how CBK could charge interest on this account. She stated that they were a law office and they charge interest on every account they bring in. I then asked if {$200.00} interest in 2 months sounds right and she began to look up the information in her computer. She stated to me that my account had only received around {$10.00} in charges of interest and the other charges were their charges being charged for their services. I informed her that this was not a debt they had bought or something along those lines and I would continue to send in my final bill to the XXXX of XXXX for the actual amount on my bill. She stated to me that since they have the account that I would not be able to do that and the city would just reference me back to them. I told her that was untrue and I would not be having any more contact with them. 

I never signed any contract with the XXXX of XXXX for services of utilities. The City had no such city ordinance in place at the time of me having utilities turned on, nor when I had them turned off that stated that old bills would accrue interest and fees if sent over to a collection agency. The electric rates were so outrageous that had the city ever passed any such ordinance, I would have moved outside the city limits like everyone else. 

This final bill has a due date of XX/XX/XXXX. Per city ordinance bills are due on the XXXX and are not charged any reconnection fees or late fees for reconnecting until the XXXX. The ordinance does not have any language regarding old bills, nor does it say anything about paying any extra charges or interest on them. The city never sent me any other correspondence regarding the late bill that was due on the XXXX of XXXX and on the XXXX of XXXX their collection agency, CBK, contacted me stating that I now must pay extra fees for their services and interest on the final bill amount to which was never agreed upon in writing or contract when services were started. 

This is deceptive practice by having a law firm with a name with the words " Collection Bureau '' in it where they can now " represent '' the XXXX  of XXXX, charge fees and interest that was not disclosed to me and I did not sign and agree to and put on my credit report that " Collection Bureau of Kansas '' as a collection against me, instead of a law firm.

Company response to consumer: Closed with explanation