A collection agency said they would accept $100(a settlement)for a $250 debt I owed to a cell phone company...

Question

However, when I asked that collection agency to put the settlement amount in writing, they insisted that they could NOT do that. How do I know if I pay the settlement amount ($100) that the collection agency would not then turn the remaining balance from the original debt owed over to another collection agency stating unpaid balance? The agency also said they could not fax nor e-mail me a confirmation that the debt has been paid as agreed for the settlement amount. At this moment there is no point in paying anything until I can get something in writing...

Answer 1

You are doing the right thing in requiring them to send you a document that states the settlement.   It is very strange that they are willing to accept less than half for a debt that is still fairly new.  So if you are not disputing the debt it seems like they are cutting you a decent deal.

What you need to do is stop talking to them on the phone.  Instead send them a Certified Letter with return receipt.  In the letter you need to put that you will pay the $100 if they agree to delete the item from your credit report.  Also, that this will clear this debt from any further action.   When you send the letter do not sign it and do not send them any money.  Only when they send you an agreement in writing should you send them the money, and then only send them a Money Order so that they don't have access to your bank account.

What you do not want to happen is for them to agree to the $100 and have it listed on your credit report as "Settled for less than the amount owed".  Especially if this difference is only $150.  This is why you need to ask for them to delete the listing once paid.

Answer 2

If they can't give you anything in writing, don't give them a dime.

Tell them it's the LAW that they have to give you some kind of confirmation and that you'll be reporting them to the FTC AND The Consumer Protection Agency.

Call or email the cellphone provider and tell THEM their collection agency is fly-by-night.

Answer 3

You don't know that they won't do that... go to some good websites like creditboards.com and look at sample letters..  Write one for the settlement amount and agreement for them to delete from your credit report.  Let them know in the letter that once they sign it you will send a money order for the amount.

PS.  I have settled with CA in the past and they ALWAYS put the offer in writing.

Answer 4

The Uniform Commercial Code, Section 3-311 is your friend.  http://www.law.cornell.edu/ucc/3/article...

When you send the $100.00 to the collection agency, write the following on the memo line of the check "Payment in full".  In the cover letter accompanying the check, write, "By cashing this check, you are accepting the check as payment in full for account # xxxxx".

Answer 5

Try calling the cell phone company and talking to one of their account representatives about settling your debt. You are totally right to want a printed confirmation of your settled account, as this is not an unreasonable request. Good Luck!

Answer 6

If the debt is more than 4 or 5 years old, the SOL probably ran out and they can't force you to pay. You tried to be nice and it got you nowhere so just forget about it.