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Ask Delta-Lawyer Your Own Question
Delta-Lawyer
Delta-Lawyer, Attorney
Category: Legal
Satisfied Customers: 3546
Experience:  10 years practicing IP law and general litigation
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I left Sprint at the end of March 2015, we had our phones financed

Customer Question

I left Sprint at the end of March 2015, we had our phones financed through them and we continued to make payments every month. What they didn't tell us was that when we left Sprint services that they no longer finance the phones and the balance becomes due. My April 11th statement shows the balance of the phones as a total of $1535. I received a phone call from a collection agency today 6/9/2015 and they claim Sprint is reporting 90+ days late on the account. I called Sprint and they verify the amount and date of the April statement. Are they in violation of any credit laws with reporting to a collection agency false account information and are they legally able to accelerate the balance just because you cancel the service?
Submitted: 1 year ago.
Category: Legal
Expert:  Delta-Lawyer replied 1 year ago.
I hope this message finds you well, present circumstances excluded. I am a licensed attorney with over a decade of litigation experience. It is a pleasure to assist you today.
They can only report that which is contractually obligated or bound between the parties (you and them). Therefore, if the original contract had this escalation authority in it, regardless of whether they verbally reported this to you, then you are legally liable to pay it if you signed the contract.
As such, if you have not paid off the balance when due, or within 90 days after the first due date, they can turn you over to collections and report this to the credit bureau.
As long as there is contractual language in place between you and them that allows this process (which there likely is in the small print), then they are not violating any credit laws with reporting you to a collection agency.
In short, it all depends on the language that is present in the contract you signed. If there is no language in the contract which would allow this, then they have no right to do it. If there is no language, you can get an injunction against their attempts at collection.
If there is language, you will have to pay it.
Let me know if you have any other questions. Please rate my answer positively if this has helped you.
Best wishes going forward!
Customer: replied 1 year ago.
Okay I understand that. According to documentation that both I and Sprint have the account is not 90 days past due. Sprint however is reporting to the collection agency that is more then 90 days past due. Currently it is 59 days. I paid the balance off but I'm just upset that no attempt from Sprint was made before sending to a collection agency and that they reported inaccurate dates to the agency. It just doesn't seem like they followed the law. I did read the contract and it does show the language that the amount becomes due if you cancel service.Do they have to provide "Event of Default or right to cure the default" before sending to a collection company?
I asked before but didnt see the answer: Is there a violation by Sprint if they reported inaccurate data to the collection agency and it can be proven through documentation?
Expert:  Delta-Lawyer replied 1 year ago.
Do they have to provide "Event of Default or right to cure the default" before sending to a collection company?
Yes. Moreover, by sending you to collections early, they are in breach of their own contract, arguably making the entire contract a moot point. However, I am sure they have a savings clause in the contract that would preserve the remainder.
Is there a violation by Sprint if they reported inaccurate data to the collection agency and it can be proven through documentation?
Yes, in short. It is a violation of law (Fair Credit Reporting Act) and it is also likely a cause of action for fraud and bad faith business practices as well. The Federal Trade Commission oversees the violation of the Fair Credit Reporting Act.
Expert:  Delta-Lawyer replied 1 year ago.
Just checking in to see if you had any other questions. I want to make sure you are as comfortable as possible as you move forward. Best!

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