QUESTION
paying $200/mth to an ins. company that we no longer use for WC that is past due. They are sending us to collections w/ threats of legal action. ?????
Asked on Jan 19th, 2018 on Business Law - Virginia
More details to this question:
Last year we had Amerisafe Insurance for WC insurance for our business. After the year was up, they sent us a bill for $1626 that they said they undercharged us. We don't have that kind of $ just sitting around to pay them. So, we have paid them $300 so far and want to continue to pay $200/mth. They have sent us to a collection agency saying that we have to pay now! We don't have it. They say we will be charged legal fees that are incurred. Can they do this when we are attempting to pay them?
1 ANSWER
If you really owe the money, and if the contract provides for them to recover reasonable legal fees incurred in enforcing it, then yes, although a court may not award them all the legal fees they seek. If a contract requires you to pay by a certain date, you breach the contract when you don't pay on time. However, they may be willing to give you time to pay, without paying legal fees, if you make a new contract admitting your liability for the amount they claim and agreeing to pay over time, with interest. You should try to negotiate some sort of compromise.
Answered on Jan 19th, 2018 at 11:38 AM