salwia2003

Debt Settlement Agreement Broken?

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You were under the impression that $3500 would settle the account? I get that from the letter too...

I think you've been suckered.

Sue for the entire $15k. Sue both First Advantage and AMEX...

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I could drive a Mack Truck that horribly written "settlement agreement" Don't ever sign garbage like that again. I was saying you were screwed until I got to the bottom where they started talking about the 1099 issue.

To answer your question, yes, collection agencies and junk debt buyers lie all the time.

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1stStep, I suppose the next step is to talk to a lawyer to explore that route, huh?

Coltfan1972, any tips on what to look for if I do another debt settlement agreement? I have some other collectors I need to deal with. Should I have a lawyer go over it? What should I require in it? (if you have time)

Thanks to you both!

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Just make it where you don't have to read anything into the letter. Iron clad.

You agree to pay XXX the creditor agrees to accept that payment as settlement in full for all claims and demands associated with XXX account, known or unknown. The balance of XXX is forever discharged and you are no longer liable for XXX.

The remaining balance will not be sold or transferred to another party and xxxx is settlement in full for all claims and demands XXXX has against XXXX arising out of XXXX account.

Just nail it down. They do this, you do that, this is what happens when both parties do what the agreement says they will do.

Need terms like forever agrees to waive all claims, full and final settlement, all claims and demands and address the balance that is getting written off. Make sure you nail them down that they can't sell that balance off and agree you are not liable to them anymore but are now liable to another party.

I could argue that you settled the account 7K and the 3.5K was the payment on the settlement balance and once you made the 3.5K the settlement of 7K was still in effect and your new settlement balance payment of 3.5 K was due next month.

I mean I'm with 1stStep, I read the letter as settlement in full. However, there should be no question at all.

1. We receive the entire Settlement Balance Due by: 06-28-12

2. All settlement payment terms are completed by: 06-28-12

Balance Owed -------------Settlement Balance Due

$15,248.82 ----------------$3,500.00

I mean this is complete garbage. So easy to say the settlement was 7K and then the new settlement balance will be 3.5 k and the balance owed 11,748.

It could be twisted into you were making a "good faith" payment toward a settlement and the settlement balance due is the balance due today to keep the settlement alive and well.

Again, I think your fine, but just get a lot better agreement next time.

"You've agreed to pay the Settlement Balance Due listed below as settlement of your Balance Owed.

That's pretty good for you right now, unless they say that settlement is just for that part of the balance that is due and another 5K of your account is not due yet, but when it becomes due we will make you a new settlement offer to settle the amount due at a discount as long as you make good on this initial balance that is due, with your settlement due payment.

Just all around loopholes. You'll be okay, go see a lawyer. It will also be and FDCPA violation (federal law violation) if they in fact have screwed you over.

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I suppose maybe my next step is to notify the new collection agency that I've settled the debt and not to contact me and send the documentation to American Express so they can hopefully update my credit report? Is there any way I can keep the account from forever being sold around?

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First source is a bunch of morons!

I settled a Cap1 business card through first source. Actually first source called and Cap1 got on the phone and setup the settlement.

A few days after they received the final payment, I all of a sudden started getting collection calls from first source, they even called a relative to find me. The excuse first source and Cap1 gave was that the account still had 3 weeks to cycle and that it was in fact settled. Bull S^&*, I gave them a verbal a$$ whopping, they had to manually look for my sister to call, she is not on the account nor does she live with me. Cap1 apologized and the calls did stop and the account is listed as settled on my CR.

Hopefully its just that the settlement did not update yet.

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Well, thanks for the replies guys. It appears I may have been a bit hasty. First Source used to be called Account Solutions Group, but the AMEX reps didn't appear to know this (understandable), and I didn't see it with a quick Google, although I may have been able to find it had I been looking for that. I had send them an email the night of July 3rd, and they promptly called me back today telling me that the AMEX account should update and report as settled in a few days or a week maximum and he gave me a number of the top guy to call if it doesn't happen. So I think they have the right intentions.

It sounds sort of related to what ioalot said. I must say though, I had only good experiences while dealing with the managers of the company once I got to that level when I offered my settlement.

Thanks guys!

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I must say though, I had only good experiences while dealing with the managers of the company once I got to that level, when I offered my settlement.

The bold is the reason why. $3500.00 X 25% (usual collector fee) = $875.00 was going in somebody's pocket. Their attitude changes a lot when they smell money.

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