Can I refuse to pay debt collectors administration fee?

[UNAFS]

Hi, we received a parking fine letter. It was from a hotel (what a shitty hotel, we had a meeting there, but apparently didn't validate the parking correctly), but it looks like they already passed it to a debt collector company who added a significant admin fee on top of it. We emailed the company asking to give more information about this fine. They replied back saying the original fine was issued last year, and since then they added additional admin fee and late payment fee. I checked the original fine attachment. I have never seen this letter before. They did not put my unit number on it, so probably this is the reason we haven't received it. I am happy to pay the parking fine, but I am not willing to pay for any additional fees. How should I proceed? Is it safe/wise to fight with these guys? Please see letter attached.

 

[sammy01]

Your'e on a hiding to nothing. It can end in a serious dent in your credit history.

 

[Scruff]

.... I checked the original fine attachment. I have never seen this letter before. They did not put my unit number on it, so probably this is the reason we haven't received it. I am happy to pay the parking fine, but I am not willing to pay for any additional fees. How should I proceed? ....

Is the letter (or envelope if applicable) from the debt collector correctly addressed with the unit number?
Is the unit number on the vehicle registration?

If answer to at least the second question is "yes" and you can pay in person or electronically and choose the amount that you pay, then...

1. Pay only the "fine" (without any of the extras).
2. After paying, send a reply stating that:

• you never received the original notice;
• that the documents they (the debt collector) have provided to you show that the original notice was incorrectly addressed;
• given the circumstances, you have paid the "fine" out of good will, but will not be paying any additional amounts;
• that as far as you are concerned, you are not liable for any additional amounts and the matter has been finalized.

If they want to take further action, then let them. They don't stand a chance if the registered address of the vehicle is correct and the address on the original notice doesn't match it.

 

[GC.]

Your'e on a hiding to nothing. It can end in a serious dent in your credit history.

How could it affect the credit history? They're not a credit provider.

received a parking fine letter. It was from a hotel

Private entities can't fine you, they can only claim damages. The way you wrote makes it seem as if you were entitled to park there and it may have even been them that stuffed up with the "validation", in other words their loss would be minimal, if any loss at all. If it were me I'd write back saying that you dispute the "fine", once the debt is under dispute the debt collector then needs to stop collections until the dispute is settled, it's then up to them to prove that they have sustained a loss.

 

[Docupedia]

How could it affect the credit history? They're not a credit provider

It’s a big if, but it is possible. The ifs are: If the debt collector takes legal action, and if they obtain a judgment, the the information will likely go on to the credit files as they record judgments. Not every court/tribunal may do this. For example, as far as I know QCAT decisions don’t end up on credit files - but if they are then registered as a judgment they will be.

 

[UNAFS]

Is the letter (or envelope if applicable) from the debt collector correctly addressed with the unit number?
Is the unit number on the vehicle registration?

If answer to at least the second question is "yes" and you can pay in person or electronically and choose the amount that you pay, then...

1. Pay only the "fine" (without any of the extras).
2. After paying, send a reply stating that:

• you never received the original notice;
• that the documents they (the debt collector) have provided to you show that the original notice was incorrectly addressed;
• given the circumstances, you have paid the "fine" out of good will, but will not be paying any additional amounts;
• that as far as you are concerned, you are not liable for any additional amounts and the matter has been finalized.

If they want to take further action, then let them. They don't stand a chance if the registered address of the vehicle is correct and the address on the original notice doesn't match it.

Thanks for your reply. The letter is addressed without the unit number, so we never received the original notice. I did exactly what you suggested: paid only the fine and sent them an email stating the address is incorrect and I will not pay any additional amounts. This was last week and I haven't received any reply yet.

 

[UNAFS]

Private entities can't fine you, they can only claim damages. The way you wrote makes it seem as if you were entitled to park there and it may have even been them that stuffed up with the "validation", in other words their loss would be minimal, if any loss at all. If it were me I'd write back saying that you dispute the "fine", once the debt is under dispute the debt collector then needs to stop collections until the dispute is settled, it's then up to them to prove that they have sustained a loss.

That's good to know, I wish I had known it before. Would you dispute the fine with the debt collector, or with the hotel itself? This debt collector seems quite intimidating, and they behave as if I am obliged to pay this fine and any fees they add on top of it, whereas it seems dodgy that a hotel is entitled to issue any parking fines in the first place. Is there an organisation that can provide advice about car owner's rights in such cases?