CA took my money and broke our verbal contract

[JatRam]

I made the classic mistake of agreeing to pay the CA (National Enterprise Systems - rude, belligerent staff) over the phone after they kept harassing me. I have never received any letters from them, and they have not shown up on my credit record yet, but they kept calling me, and I gave in. I told the woman we would settle for $3700 on a debt that they calculated as $6000 (and should really have been lower owing to what the credit card company says it sold the debt as).

On the phone she agreed to take two payments of $1850, spaced 1 month apart. I sent $1850 via western union. But today, a week later, she calls and says she wants the rest of the money in 2 weeks (as opposed to 1 month as we had agreed earlier). I told her we had agreed to 1 month. She claims I am lying (I am most certainly not lying).

I did all this before I found this website and learnt about DVs and all kinds of other things. I have not even had any written correspondence with them yet! All I have to show is my western union receipt paid to National Enterprise Systems.

I was willing to make the second payment on time as we had agreed, but her tactic has shown me that I was a fool. I would not be surprised now if she calls me after the second payment and claims I need to pay the full amount because we had no settlement.

What are the options available to me now? Should I DV them? Should I just get our settlement in writing and make the second payment? Can they continue to contact me via telephone if I tell them to cease and desist and contact me only via writing?

[astiman]

If you don't have it in writing, legally it never happened.

[andknapp]

Stop paying them and don't talk to them over the phone anymore. I would send a c&d immediately. Then dv them. Make sure they actually have the account and can prove they have the paperwork on it. They have to stop trying to collect until they validate, if they don't, sue them. If they have the proof of your debt, then you need to have them send a settlement agreement by mail to you, that way they can't come after you again.

I don't know if they can or not, maybe someone else can answer, but if they take a settlement, can the oc still come after them the balance?

[JatRam]

What if they send me a faxed copy of the settlement? Does that work as a legally binding document? Or does it have to be via mail?

[someonesomewhere]

Stop paying them and don't talk to them over the phone anymore. I would send a c&d immediately. Then dv them.

Whoa there pardner. Don't C&D them. You want them to keep communicating. Hard to negotiate a PFD if they can't talk to you. You want them to continue seeking opportunities to violate the law. That's the real leverage to get a PFD.

California is an APS for the recording of phone calls, but they might still commit violations if they know you are taping.

http://www.rcfp.org/taping/states/california.html

[andknapp]

I send a c&d to make them stop calling me and do everything by mail. I had a ca tell me once that they would do a settlement and pfd over the phone but then wouldn't mail me anything. personally, i hate talking on the phone to them, all they do is threaten.

[hiblues]

I'm sure most here would say.

1. DV immediately

2. Check your CR to make sure it isn't there.

3. Get all agreements in writing.

I agree, don't C&D them, just get a recording device at Radio Shack and put in your letter, All calls are recorded. This way you have given them notice.

FAX should be OK, as should e-mail.

Send it CMRRR, or any other way that confirms delivery.

Here is a sample agreement letter one of the members here suggested....I changed a couple of things....but

Change anything that is applicable for your letter: Example: The dates, account numbers, company names, method of payment, and your name, etc.

------------------------------------

From:

John Doe

4321 Springer Dr.

YourTown, CN

74344

March 12, 2007

Dear xxx,

Re: Account Number_2020360002548645

I really appreciate the fact that your company is willing to work with me on this

matter; I want to make an honest attempt to settle this debt. My credit rating is the most important item in this settlement agreement to me as I am striving to regain a perfect credit rating as reported to the credit bureaus.

This letter is to make an offer to settle the debt between myself

and your company.

The amount I would like to propose as the payment in full for this debt is

$75.00. In addition, this settlement would require the complete removal of this account from my credit file.

If these terms are acceptable to your company, please sign the attached letter of

agreement and return a copy to me. Upon receipt of this signed acknowledged

agreement, I will call immediately to pay you by Credit Card.

This is notice that that all calls to me are recorded.

Yours truly,

x

AGREEMENT TO COMPROMISE DEBT

Equidata, referred to as CREDITOR and (Your Name), referred to as DEBTOR, agree to compromise the indebtedness as between them.

CREDITOR, hereby agrees to compromise the indebtedness due the CREDITOR on the following terms and conditions:

The CREDITOR and the DEBTOR agree that the present debt due on account # ##### is $75.00. (Seventy five dollars and 0 cents). The parties agree that the CREDITOR shall accept the sum of $75.00 as full payment on the debt. The acceptance of the payment will serve as a complete discharge of all monies due on said account.

In addition, upon accepting of the $75.00, the CREDITOR will notify all Credit Reporting Agencies that account is PAID AS AGREED, and DELETE any entries.

This compromise is expressly conditioned upon the payment being received

This Agreement shall be binding upon and inure to the benefit of the parties, their successors and assigns.

This is an attempt to pay a debt.

Dated: ________________

Signature: _______________________

Equidata

CREDITOR

Signature: ________________________

x

Debtor

___________________________

[JatRam]

SO I just checked my credit report again, and the CA isn't in there, but Citibank (the original creditor) last updated my recent balance in april 2007 even though it says "account charged off/ $4681 written off."

Could it be that citibank still owns the debt? How can i find out?

[merkurfan]

They can show the amount owed even if charged off. UNLESS they sell the debt. Charged off does not mean you don't owe them. If they sell it they must report 0 owed and "sold to another lender"

[LadynRed]

I send a c&d to make them stop calling me and do everything by mail.

There is no such 'mail only' C&D letter. If you tell them to cease and desist, that is ALL they are going to do because that is what you're telling them to do !

I had a ca tell me once that they would do a settlement and pfd over the phone but then wouldn't mail me anything

99% of the time, if a collector's opening his mouth, he's LYING !! If you dont' get it in writing, you have NO AGREEMENT.

[someonesomewhere]

I send a c&d to make them stop calling me and do everything by mail.

Read Dive's primer. Tell 'em your employer doesn't permit personal calls at work, and all calls to your house are recorded--whether you do or not. They will be disinclined to call, and if they do call they are more likely to behave. If they still don't behave over the phone, then you're missing a golden opportunity to catch 'em in violations by recording them.