Consumer complaint received 2019-02-22
Product: Debt collection — Other debt
Issue: Took or threatened to take negative or legal action — Threatened or suggested your credit would be damaged
Company: Municipal Collections of America Inc. (IA)

I had a unwritten contract with XXXX XXXX XXXX XXXX ( XXXX ) in XXXX for a property I rented in with several other tenants and my name was on the utilities. When I moved away from this rental I found out that I was on a budget billing program and me and the other tenants owed more money than we were paying due to them billing us less than our usage. The tenants left me with the bills so I consolidated my debt to pay off ( XXXX ) and the other utilities companies. When I consolidated this debt I called XXXX to have them send me a final bill that I never received. I then called ( XXXX ) XX/XX/XXXX to request the amount owed and mailed ( XXXX ) a check for {$120.00} via USPS the same day due to never receiving a final bill. On XX/XX/XXXX Municipal Collections of America, Inc. sent me a bill in via USPS for {$120.00} authorized by Iowa Code Section 8A.504. This same statement from ( MCOA ) stated the I had 30 days after receiving this notice that I could dispute the validity of the debt or any portion thereof, this ( MCOA ) would assume the debt was valid. After receiving this billI called ( MCOA ) the same night but they were closed. I called ( MCOA ) the following day and ( MCOA ) explained that I never paid the utility bill from 6/24/2010. I stated I wanted to dispute the debt and I requested to have all the information on this debt mailed to me at the same address they already had listed. I also asked ( MCOA ) how the dispute works and how much time this gives me to pay the bill or dispute it and they MCOA employee would not answer my question. I read the notice they sent me that said I 30 days and he said that since I'm disputing it " I don't have to worry about the time frame now ''. I explained that want to dispute this but want the time to exceed the amount given and have it hurt my credit. ( MCOA ) employee said that the time doesn't matter now that I'm in a dispute and refused to give me any information on the dispute or the time frame it gives me. The same day I called ( XXXX ) and asked if this was a scam or real debt and they responded that the debt was real. I asked for the dates and debt amount. They said they would send me the information via mail. I then asked why it took 9 years to bill me and she responded that they got a new system and the debt was found. After thinking it an hour later I called ( XXXX ) gain and requested my past billing history, my contract with them, and for an itemized bill for the debt I owed. I asked the why it took 9 years for them to bill me and the lady responded that they didn't have the resources to bill me earlier but now they do. A week later the only information ( XXXX ) they sent me was the final bill and the only information ( MCOA ) sent me was the same bill. After an estimated two to three weeks passed without ( MCOA ) calling me back about the dispute on XX/XX/XXXX I Called ( MCOA ) to request and update on the dispute. The ( MCOA ) employee asked me if I had a receipt from a bill I payed 9 years earlier and acted as if that was all the dispute was and they weren't going to get back to me on the subject. I requested the information on the debt such as my billing contract, and past billing history over the phone and the employee stated I couldn't request it over the phone and that I would request it through an outside source, I then asked why I couldn't request it verbally right now when the ( MCOA ) employee hung up on me. I called back and that ( MCOA ) employee forwarded me to the same person where he dropped the call again. I called back for a 3rd time and this employee at least attempted to try to help me. He said he would have someone contact me on the subject. I brought up the iowa code they used to send solve this debt section 8A.504 and how Iowa code 614.1 states that a unwritten contract statue of limitations is 5 years and I want to know how 9 years later collections is calling me and he couldn't explain. I requested the time I had left on the dispute before it was in collections and hurting my credit and he said it was all ready turned into collections even though that their employee told me that the 30 day time frame didn't matter when I started the dispute. Immediately after called ( XXXX  ) and asked to get a copy of my contract again where the employee stated there is no copy because its a verbal contract and not a written contract. I asked how they can legally turn me into collections with a verbal contract debt after 9 years of them not contacting me even though Iowa code 614.1 clearly states under unwritten contacts that they have 5 years to confront me. The IRS typiclaly goes back 7 years but a utility bill expects me to go back 9? Nobody saves their recipe that the utility company doesn't give you 9 years to defend themselves over a {$120.00} dollar debt. Considering they employee at ( MCOA ) stated I'm now in collections and its damaging my credit I had to make the choice of paying a fraudulent debt or letting my credit be destroyed. I have since payed ( XXXX ) using their XXXX billing platform without the chance to properly dispute the fraudulent debt so it no long destroys my credit. There isn't a chance in XXXX I'm trusting Municipal Collections of America Inc. with my payment considering they hung up on me twice and never made a realistic attempt to dispute by debt but instead gave me the run around, false information, and couldn't support any information on the debt outside of a computer generated bill from 9 years earlier. Both of these companies need to be deeply audited considering their demanding payment without a legit chance to dispute the debt. They are granting a form of credit to people under verbal contracts that they can't support and then turning the debt into a collection agency thats most likely in the City of XXXX XXXX pocket.