What do i do about Fraud?

I purchased an account at 1and1 for Web Hosting, I Prepaid the account up for a year, and about 3 weeks before that subscription was up, I canceled my account.. They allowed me to use the account until my prepaid subscription expired, then closed the account.. 3 months later, I get 2 Collection Notices for 1and1 from NCO Financial. One for 30.00 and another for 18.95. I called 1and1 to see what happened, and they REFUSED to tell me WHY they turned me in.. All they would say is the billing came due, They froze my account to get my attention, I never responded, so they turned me in.. I CANCELED THE ACCOUNT! I dont know if they are reporting against my credit now, or what.. But i am NOT paying for something i never got.. Who or what do i contact about this? Should i get a lawyer? Its only 59.00 but, Im not paying it..

Send the web hosting company a certified, return receipt letter asking them to explain the additional charges. Indicate that you canceled and the account was closed at the end of your prepaid period. Hopefully, you canceled the account in writing.

Send the collection agency a certified, return receipt letter telling them that the debt is not valid and that you do not owe any money to the hosting company and to cease all contact. They have to stop. It is unlikely they will sue over $59 and will probably just sell the debt to another collection agency. You’ll have to send another letter to the new collection agency.

This will give you a papertrail. You really need to fight it out with the web hosting company. But if they won’t respond, you may have to just live with that $59 on your credit report. The good news is that the new FICO formula doesn’t include derogatory items like this when less than $100.

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