Dear Melissa,

Five years ago I broke a lease with one month remaining on my lease (stupid I know).  But I’m a single mother and my son became very sick and I couldn’t afford to pay the rent.  The apartment complex (or the collection company they use, rather) has slapped a $10,000.00 debt on all three of my credit reports, with my rent being around $1,300.00 per month at this particular apartment complex.  I did not receive my deposit back (obviously), but I did put one down.  And I left the apartment in immaculate condition.  Please help me with the best way to approach this situation.  I want to do the right thing to ensure that this matter is resolved asap.

I live in Texas and I know the Statute of Limitations is four years, which will be June 1, 2009.  Please advise!!!!!!  Thank you.

Nicki F.

Dear Nicki,

The first thing that I would do is obtain a detailed account as to what the charges are.  $10,000 seems like a high amount when you only had one month left on the lease.  By federal law, the collection agency must provide you with a detailed account as to each and every separate charge adding up to that amount.

Also, in the letter, inquire as to where the security deposit was applied.  And finally, ask for a detailed list of any additional charges that have been applied, including but no limited to late fees, collection agency fees and any attorney amounts.

If the charges seem fair, you can attempt to either negotiate a payment arrangement with the collection agency, or a settlement to pay off the entire amount.

If they do not seem fair, you can then dispute any of the charges that seem excessive in attempts to reduce the bill.  You are correct about the statute of limitations.  After the debt reaches that date, they can no longer sue you for the amount owed.  However, I would not mention that you are aware of that date so that the collection agency does not get overzealous and try to file against you before that date!

Do YOU have a question for Melissa? Email her at melissa@dovcocs.com.

Melissa Douros
Dovco Collection Solutions, Inc.

As the owner of Dovco Collection Solutions, Inc., Melissa Douros uses her eight years of being a collections specialists to offer advice and answer questions pertaining to debt collection.  With running her own successful collection agency, she seeks to keep debt collectors accountable for their actions and in line with the law.