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CA coming after settled debt!


misoc
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Hi,

I settled a debt for 25% of the balance owed last week with a collection agency. I have the settlement agreement in writing and I wrote if you cash this check then the account is 'settled with no further obligation' which is the wording used on the settlement agreement. Also, the account number from both the CA and OC are written on the check. I also have proof of delivery and a copy of the cashed check.

I received a letter today from the same collection agency trying to collect on the remaining balance. They claimed that the account was sold to themselves via another LLC. The account numbers of the CA and OC are the same. I am in CA.

What is my legal recourse? If they sue me do I have an adequate defense?

Thanks

Edited by misoc
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Wow, I have heard of months or years and then getting a call but not 1 week. :shock:

Don't bother calling them. They will tell you that the collector had no right to make such an agreement and that the collector does not work for them anymore, even if the collector you made the agreement with is in the cubicle next to the collector you are talking to. You will just be banging your head against a wall of incompetence.

Make a copy of the agreement and the cashed check. Along with those, include a C&D letter that states that the attached is the agreement made by you and the company on this account and the check showing that I have fulfilled my end of the agreement. You therefore are not to contact me anymore. Send this CMRRR.

If they sue you, you have an affirmative defense of what I believe to be Equitable Estoppel. You simply attach the agreement and the cancelled check as exhibits to your answer.

And this my friends, is why I state that if you are going to settle with a CA/JDB, make sure to get it in writing and keep a copy of the cancelled check/money order receipt stapled to it and KEEP IT FOR THE REST OF YOUR LIFE.

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Thanks for the reply. It might be kind of hard to say the rep has left the company because the same rep sent the new notice! Does the wording in the agreement 'settled with no further obligation' prevent the CA from legally selling the account?

Edited by misoc
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"Unless you have an agreement that explicitly set out both the settlement terms, extinguished the debt and prohibited transfer of any remaining balance, they can come after you..."

This is what I am worried about. I assumed that the wording 'settled with no further obligation' set forth by the CA was sufficient.

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Hi,

I settled a debt for 25% of the balance owed last week with a collection agency. I have the settlement agreement in writing and I wrote if you cash this check then the account is 'settled with no further obligation' which is the wording used on the settlement agreement. Also, the account number from both the CA and OC are written on the check. I also have proof of delivery and a copy of the cashed check.

I received a letter today from the same collection agency trying to collect on the remaining balance. They claimed that the account was sold to themselves via another LLC. The account numbers of the CA and OC are the same. I am in CA.

What is my legal recourse? If they sue me do I have an adequate defense?

Thanks

See the red? That is "Exhibit A" in your FDCPA suit for Misrepresenting the Legal Nature of the Debt, and don't let them claim "BFE" because there is NO WAY they can claim that with the same collector after you now who settled the debt a weeek ago.

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