Let me start by saying thank you in advance for your constructive suggestions.

Here's the story: About 5 years ago I opened a company credit card account (Banana Republic). Well, I was traveling a lot at the time and didn't pay the bill for a few months. Shame on me.

I called the number to pay my bill and asked to pay the entire bill. I was assured that after I paid I would not have any charges left on my account.

Fast forward and I kept getting statements, which I didn't open because I was lazy/busy and I wasn't using the card. I believe they were for a finance charge but I had already confirmed with the CSR that I paid the entire outstanding balance.

So, they sent my debt to a collection agency. I've asked the collection agency on several occasions to provide me with something that shows what the debt is for because, as I explained, I paid the entire bill. I was told that they could not provide me with the underlying documentation supporting the debt.

I've also called Banana Republic to ask them to provide me with documentation but they say they do not have it in their records.

At this point what do I do? If I mistakenly used my card I'd have no problem paying. Still, I'm pretty put out that I paid the entire bill off and now I'm getting (what I believe to be -- not entirely sure) compounded finance charges. The total amount isn't so much (around $200) but I'm pretty pissed off. Can I do anything given that no one can tell me why I owe the money? Should I just suck it up and pay off the bill?

Any advice would be greatly appreciated. Thank you.

FTC said:May a debt collector continue to contact you if you believe you do not owe money?

A collector may not contact you if, within 30 days after you receive the written notice, you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.

What types of debt collection practices are prohibited?
Harassment. Debt collectors may not harass, oppress, or abuse you or any third parties they contact.

From the FTC

First of all, it should be obvious that finance charges are accruing on balances daily, so if you pay the full previous statement (which is what the "entire bill" is I guess), you still have to pay interest for your balance for the days from the statement issue date to the day you actually paid (of course you don't have a grace period for existing balances). This charge will naturally appear on the NEXT statement. Now, if you don't understand these simple things and even worse WONT open/deal with your bills you should forget about using credit cards. Cash works fine.

Secondly, I have read repeatedly on this forum that you can send via certified mail a dispute of the debt and request for proof, and they have to provide it to you or stop trying to collect. You can search for the specifics, or head to creditboards which is a more suited forum for these things.

Fitton said:Here's the story: About 5 years ago I opened a company credit card account (Banana Republic).

a company credit card with Banana Republic? you have *got* to be joking!

Fitton said:Fast forward and I kept getting statements, which I didn't open because I was lazy/busy and I wasn't using the card.Month after month you keep getting statements, and it never, not even once, occurred to you that it might be a good idea to open one?

Pay your bills, deadbeat.

So, they sent my debt to a collection agency. I've asked the collection agency on several occasions to provide me with something that shows what the debt is for because, as I explained, I paid the entire bill. I was told that they could not provide me with the underlying documentation supporting the debt.

Go buy a phone recorder, record both the collection agency and bananna republic making these statements, then sue the collection agency for not validating a debt and false/misleading representations.

The total amount isn't so much (around $200) but I'm pretty pissed off.
If you are pissed off, you should sue them.

5 years of compounded finance charges AND late fees.
That they admit having no documentation of....

Did you want someone to come to your door to remind you to pay the finance charges?

How is this charge disputed? You admit that you had the card, you admit you carried a balance. Do you not think that you owe finance charges on the balance that you carried? This isn't "Credit Score Low BEcause of Disputed Charge", its "Credit Score Low Because of Failure to live up to agreement with credit card company".

Pay your bills deadbeat.

codename47 said:How is this charge disputed? You admit that you had the card, you admit you carried a balance. Do you not think that you owe finance charges on the balance that you carried?
There is the aspect that neither the collection agency, nor the creditor whom these monies are supposedly owed can produce one shred of evidence to support their assertions.

Carrying a balance doesn't necessarily mean that charges X are valid, and if they are, surely the collection agency can provide some documentation of that...right?

Right, I wasn't really addressing whether the collection agency had provided the legally required documentation. I was addressing the OP's responsibility for the entire situation. Even if you take the OP's statement as completely factual, he would owe finance charges the next month for the balance that he carried after he paid the monthly balance.

And even if the customer service rep did tell him that he wouldn't owe anything else, he should have addressed this long ago when the credit card company was sending him bill after bill after bill.