ihateCAandJDB

does a debt settlement agreement must be signed by both parties to be valid?

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so I am trying to settle out of court and we agreed on an amount verbally. I told them i wanted everything in writing and to send the debt settlement agreement letter to me.

However, it seems they still have not sent the letter for me to sign, its been over two weeks already, and its due pretty soon at the end of month.

a verbal agreement is not binding right?

they would have to send me the letter for me to sign and date it for it to be legally binding on both parties right?

without the letter, could they still sue me for the full amount if not paid by certain date that we agreed on verbally?

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I think the most important thing is having them send you a letter spelling out the terms of agreement and signed by a representative of the company.

I don't think you have to sign the offer. By making the payments as agreed you are abiding by the agreement and accepting those terms.

The letter they send you should be binding to them to honor the agreement as long as you abide by the terms of that agreement.

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There are certain criteria we insist upon in a settlement letter when settling debts for our clients (the list is too long to post), and the settlement letter is typically signed by a creditor representative (either directly from the creditor's office, a collection agency or a law firm). We do not, however, insist that our clients sign a settlement letter unless it is a stipulated judgment, as our client's payment is proof that they have agreed to a settlement agreement. In ten years of experience, this has NEVER been a problem. Again, if you're dealing with a law firm, and there will be a stipulated judgment, you'll have to sign, but if they don't insist on your signature, as long as you have theirs and you pay the settlement agreement, you'll be just fine.

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well, this is for a one time lump sum settlement.

my main thing is, i think they are playing the delayed tactic game and trying to pass the date that the lump sum payment has to be in by.

Don't they have to send the letter for me to sign and date it for it to be legally binding on both parties?

I mean, without the letter signed by me too since i wont be able to get it in time, its not legally binding right?

could they still sue me for the full amount if not paid by certain date that we agreed on verbally without the signed letter?

that is my main question

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Yes , they could still sue you if you do not pay the amount agreed upon by a certain date. Having said that, if there is an agreement reached you should NOT PAY anything until you have a signed letter from them stating that they will accept this lump sum payment as the total amount to be paid to settle the debt.And it must be signed by a representative. It is not important for you to sign it because by paying it your acceptance is indicated.

Since they have not sent the letter to you I would definitely not pay. They will probably reset another date when they realize they will not be getting a payment until you get the signed letter with the agreed upon terms. Good luck!

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I negotiated a settlement with BofA for $.30 on the dollar and for them to mark my CR as "paid in full", they zeroed out my credit report, but marked the account paid in less than full.

The next step is to send the settlement letter to the CRAs and to BofA to get the account updated properly. If they do not update, then I have a FCRA complaint, they breached a contract.

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so i got the settlement letter.

however, there are a few problems that i detected right away.

first of all, the account number listed and the balance is not the same

as the one that is on the sworn affidavit from the original creditor and not the same as on my credit report.

second, it just says that this letter is to confirm that our client has agreed to accept (certain amount) as settlement in full.

failure to make the above payment in full and on time will void this settlement agreement and the

entire balance will be due and owing.

signed attorney for creditor

so plain.

i thought that in order for it to be an agreement to be binding, both parties must sign it.

what do you think?

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Payment is the #1 cause of amnesia in a debt collector and the only treatment is a signed written agreement.

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