Attempted collection after debt settlement

[elbo]

I've recently been contacted by a collector for the difference in a debt that was settled for less than the amount owed about 6 months ago. I sent them a copy of the settlement letter stating that the debt was settled and considered paid. Can this collector pursue the difference in the total owed? After submitting the settlement letter, I received another letter stating that I would be contacted 'after their investigation' is completed. This letter stated that as a collector, they had to right to assess my assets, current creditors, checking account, etc. to determine my ability to pay.

 

[debt_helper]

I've recently been contacted by a collector for the difference in a debt that was settled for less than the amount owed about 6 months ago. I sent them a copy of the settlement letter stating that the debt was settled and considered paid. Can this collector pursue the difference in the total owed? After submitting the settlement letter, I received another letter stating that I would be contacted 'after their investigation' is completed. This letter stated that as a collector, they had to right to assess my assets, current creditors, checking account, etc. to determine my ability to pay.

a creditor is not required to take a settlement to satisfy a debt. However, if you got something in writing that was signed and filed with the court, stating that a settlement was to be accepted, a second collector cannot collect the balance. That is, of course, assuming you paid EXACTLY according to the terms of the settlement. If you paid late even once, you violated the terms of the contract, and the creditor is free to proceed to collect the entire debt on your default. As for credit checks, a creditor can request credit information to determine your ability to pay a debt. After all- you can't draw blood from a stone and if a debtor has no money the creditor ends up paying more in court costs then they ever collect. So the only question is, the form you have from the first collector- signed and filed with the court, and good payment made? If it was, chances are the court also has a filed dismissal notice you will want to get your hands on. Your message is unclear as to whether you were actually ever sued, or merely agreed to pay a creditor.

 

[seniorjudge]

I've recently been contacted by a collector for the difference in a debt that was settled for less than the amount owed about 6 months ago. I sent them a copy of the settlement letter stating that the debt was settled and considered paid. Can this collector pursue the difference in the total owed? After submitting the settlement letter, I received another letter stating that I would be contacted 'after their investigation' is completed. This letter stated that as a collector, they had to right to assess my assets, current creditors, checking account, etc. to determine my ability to pay.

Did you give them any money?

 

[elbo]

It never got to court. The credit card company agreed to accept a lump sum of $1700.00 toward an original balance of $3100.00. I paid it on time and I have a copy of my cancelled check. I also have the copy of the letter from the company that I received after my check processed that clearly states that the debt was considered settled and paid. I have not paid anything to this second collector. When I submitted a copy of the letter with the cancelled check to the second collector, they seemed satisfied that this debt was settled. Then I received the second letter stating that I 'would be notified' when the investigation is completed. I wouldn't exactly describe my financial situation as 'squeezing blood out of a turnip', but as a single parent, it would definitely be a hardship if I had to come up with $1400.00. I have a decent job, a mortgage, car note, and a few credit cards with balances all less than $500.00. I'm afraid that it may appear that I may be in a better position to pay than I actually am. Bottom line - can they do this?

 

[debt_helper]

Usually this is how collection works. You owe money to whoever- a hospital, credit card, whatever. They try to get you to pay, but have so many customers they just sell your debt and cut their losses. This then happens over and over again until either 1) the statute of limiations runs, or 2) you get sued. Problems arise when the debt is being passed from collector to collector, and you pay 1 collector, and then a second collector that bought your debt in a file with 6,000 other debts just wants their money. So when you tell the new collector you pad a past collector, and provide documents, the second collector has to go back to the first, pull everyones records, maybe get their money back for purchasing that debt, etc... so that is most likly what is ment by "conduct their investigation." It's not just a simple- I accept these papers you gave me, so I don't want your money.