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Debt Settlement Letter

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Bank of XYZ 


Amount Due as of March 9, 2015: $
 XXXX  Account # XXXXX


March 9, 2015
Address-AJ's address
Our client, the above named creditor, has agreed to accept your offer of 1 payment(s) totaling $.xxxx  as settlement for monies owing on your account. Please make your check or money order payable to Bank of  XYZ. The terms of the agreement are:
Date Amount    
03/13/2015 $XXXX
This settlement offer is void if the agreed payments are not made as stated above.
Whenever $600.00 or more in principal of a debt is discharged as a result of settling a debt for less than the balance owing, the creditor may be required to report the amount of the debt discharged to the Internal Revenue Service on a 1099C form, a copy of which would be mailed to you by the creditor. If you are uncertain of the legal or tax consequences, we encourage you to consult your legal or tax advisor.
This communication is from a debt collector. We are required to inform you that this is an attempt to collect a debt, and any information obtained will be used for this purpose.
Clerk Reps Name-SH
Collection Agency Nmae
Collection Agency name


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I tried to post the above letter, several times, and it would not post. I hope it does not pop up and I have several of the same thread. I was wondering if I can be held liable for the unpaid portion of the original balance. The collection agency says this is a final settlement.

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Well, the above letter is pretty boiler plate verbage.  Some will say that since it doesn't explicitly state that the remaining balance won't be sold/collected on etc, yes.  Others, myself included, would tell you that if you keep a copy of that letter as well as proof that payment was made according to the above terms & request a satisfaction letter afterwards, you will have an ironclad defense if you ever do get another JDB/CA call or summons.  It all depends on your level of paranoia.

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