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collection settlement listed as recent payment


ARDKZ
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I thought I had a collection settled and paid but when I looked at my credit report it shows that the OC has it down for a recent payment and the account was charged off again for March. I haven't heard anything from the OC or a collection agency but does this mean it was never really settled? Will it start all over again? Unfortunately, I don't have anything in writing just what I wrote down when I was talking to the collection agency.

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Did you settle for less of what you owed?

Unfournately, lots of people do this thinking they are through with the debt....but collection agency's sometimes lie....and they still show where you owe more.

Example...say you owed $1000 but you settled with them for $200. Well, now they can say you still owe $800...especially if you didn't get it in writing. Plus, it's considered a payment now...so that makes the bill look new. And...you made a recent payment so you admitted that it was your debt.

Not much you can do...maybe try disputing it with the CRA's and see what happens

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Good thing you closed the account. The CA can (without your permission) make additional debits to the account once they have the number. This has happened in the past. That is why we say to never pay a CA from your bank account - if you do pay them have the agreement in writing and pay via money order.

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If you have a signed agreement in your hand that says the payment of $X is "settlement in full" of Y debt, then you need to stomp on the CA and the OC with both feet until they cry for mercy.

If you don't have such an agreement then all you did was "make a payment" and they OC has the right to reflect it as such.

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I specifically asked the CA if this settlement would be for the total amount and they assured me that my account would be zero. Should I try and contact the OC again, the find out if they will negotiate? The first time I contacted them they said the account had been charged off and they directed me to the CA

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What you specifically asked is immaterial...what they specifically said is immaterial...only what a signed agreement says is material.

I take it that you don't have a signed agreement?

Yes you can try to OC again but they can choose not to work with you (after all, creditors usually send accounts to CAs because specifically because they don't want to deal with collections).

You can go back to the CA again if you want to be lied to some more.

Were I you, I'd be writing a nice friendly letter to the CA explaining how much you appreciate their lying to you...set out in detail what they told you and when and explain to them what lying is (because they likely have no concept of it)...send that letter CMRRR to the CA and send a copy CMRRR to the OC and I'd also make a copy of that letter the basis for formal complaints to your local BBB, the BBB of the city the CA is based in, your state AG, the state AG of the state the CA is based in, and to the FTC. It likely won't actually do you any good but you'll feel better, I promise.

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