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What violations do I have here?


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I am in California.

Last year I sued a company for trying to collect a debt I did not owe from them. We settled. However, I was going through a lot at the time and did not put a liquidated damages clause in the settlement agreement. So I have to go after them again.

However, a few months after the settlement, their collection agency, Crappy Collector, LLC  continued to come after me. They even sent me something under the terminology “payment rewards program” saying if I completed it that I would become eligible to apply for the program’s bank issued unsecured credit card (with a 19.99% APR). Even though I understood it (I read EVERYTHING), it is incredibly convoluted and the least sophisticated consumer would be FUBAR by the end of the situation (they were offering $205.15 off of $479.15, but mud was clearer than the way they put it; as was the whole credit card scheme). They also claimed in these collection letters that they were the owner and current creditor of that account.

I sent them an ITS in response they said, “We acknowledge receipt of your correspondence concerning the above referenced account. Crappy Collector, LLC acquired the account is the current creditor. Although we disagree with the merits of your dispute, we have terminated for the collection efforts and closed our file. Crappy Collector, LLC is no longer reporting the account to the credit bureaus.” That letter was dated 9 months after the settlement with the original creditor and I received at least 3 of the crazy collection/credit offer letters during that time.

My questions are:

 

·       What violations do I have against the company that I settled with?

 What violations do I have on the collection agency? Thank you!

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9 hours ago, Ready To Fight said:

I am in California.

Last year I sued a company for trying to collect a debt I did not owe from them. We settled. However, I was going through a lot at the time and did not put a liquidated damages clause in the settlement agreement. So I have to go after them again.

 

However, a few months after the settlement, their collection agency, Crappy Collector, LLC  continued to come after me. They even sent me something under the terminology “payment rewards program” saying if I completed it that I would become eligible to apply for the program’s bank issued unsecured credit card (with a 19.99% APR). Even though I understood it (I read EVERYTHING), it is incredibly convoluted and the least sophisticated consumer would be FUBAR by the end of the situation (they were offering $205.15 off of $479.15, but mud was clearer than the way they put it; as was the whole credit card scheme). They also claimed in these collection letters that they were the owner and current creditor of that account.

I sent them an ITS in response they said, “We acknowledge receipt of your correspondence concerning the above referenced account. Crappy Collector, LLC acquired the account is the current creditor. Although we disagree with the merits of your dispute, we have terminated for the collection efforts and closed our file. Crappy Collector, LLC is no longer reporting the account to the credit bureaus.” That letter was dated 9 months after the settlement with the original creditor and I received at least 3 of the crazy collection/credit offer letters during that time.
 

 

My questions are:

 

 

 

·       What violations do I have against the company that I settled with?
 

 

 What violations do I have on the collection agency? Thank you!

Who was the company you settled with?

What do you believe they did wrong after the settlement?

Who is the “crappy collector”?

Could we see a redacted (personal information removed) copy of the letter?

Is the original creditor still reporting on your credit report?

 

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On 9/21/2021 at 4:27 AM, BV80 said:

Who was the company you settled with? I signed an NDA, so I can't say.

What do you believe they did wrong after the settlement? They didn't call the debt back from the collection company and stated in the settlement agreement that they would submit to the CRAs that it would be deleted; the collection agency letter affirmed that the first part didn't happen and that the collection agency placed it back on my credit after it had been deleted.

Who is the “crappy collector”?

Could we see a redacted (personal information removed) copy of the letter? Sure.

Is the original creditor still reporting on your credit report? No.

 

I'll post the letter in a minute.

 

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1 hour ago, Ready To Fight said:

 

I'll post the letter in a minute.

JCAP letter.pdf 1.23 MB · 6 downloads

It appears Jefferson Capital purchased the debt.  Did you open the account with the original creditor?  

Did the terms of the settlement state that all claims you had against the original creditor were considered settled, or something to that effect?  If so, and you accepted the settlement, you can’t go back sue again for more money.  

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On 9/21/2021 at 7:21 PM, BV80 said:

It appears  purchased the debt.  Did you open the account with the original creditor?  

Did the terms of the settlement state that all claims you had against the original creditor were considered settled, or something to that effect?  If so, and you accepted the settlement, you can’t go back sue again for more money.  

Yes, I opened the account. However I returned something, have proof I did and that they received it. They never credited my account.

 

They left me an opening with the settlement agreement in trying to be @$$holes because they didn't cover their performance of the contract and it was their performance after the contract was signed that their breach occurred (I hope that makes sense).

 

Oh and neither Crappy Collector, LLC or the OC sent me a letter warning that they were going to put the item on my credit from the beginning.

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5 hours ago, Ready To Fight said:

They left me an opening with the settlement agreement in trying to be @$$holes because they didn't cover their performance of the contract and it was their performance after the contract was signed that their breach occurred (I hope that makes sense).


I apologize for all the upcoming questions.

Okay, but what does the settlement say in terms of your acceptance of the settlement?  Does it state anything about holding them liable for “any claims”, “all claims” or “future claims”…anything like that?  Does it mention anything about them being “absolved of” claims?   Or that your acceptance of the settlement “resolves” all issues?

Just because they didn’t mention or address specific claims doesn’t mean they left you an opening to go after them again.  Settlement agreements mean that the complaints one party has against another party have been settled.  They don’t usually list all the possible claims a party might have in the future or that the parties forget to include.  Here is an example.

Let’s say you owe $500.00 on an account.  The creditor agrees to accept 50% as settlement.  It sends you an agreement that states upon their receipt of that 50%, the account is considered settled and paid in full.  You pay the $250.00.  They accept your payment.

Later, they send you a letter saying they had forgotten to include a charge in the original balance and that the original balance was actually $550.00.  Therefore, the 50% settlement should have been $275.00.  Since you only paid $250.00, you now owe them an extra $25.00.

They don’t have a leg to stand on.  The agreement said that $250.00 settled the account in full.  They cannot come after you for that extra $25.00 because they are the party who already said that your account was settled and paid in full. 

Then you have to consider the statute of limitations.  When did the incident for which you sued occur?

When did you return the item or make your last payment on the account?

Does the agreement state that you are not liable for the account?   

5 hours ago, Ready To Fight said:

Oh and neither Jefferson or the OC sent me a letter warning that they were going to put the item on my credit from the beginning.

Unless your state law makes that requirement, neither the OC nor the JDB have to provide you with such a warning.  

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This is an interesting situation.

By interesting, I mean it is a bit complicated.

Add to that we have very limited information.  The OP doesn't want to violate a NDA.  I understand.

So we don't know if anyone violated any part of the settlement agreement, partly because we haven't seen the agreement.

That being said, if the party with whom the OP had a settlement agreement sold a debt that didn't exist, they may be liable for something or other.  Depends on what the agreement said.  

The new JDB may or may not be liable for something or other.  

 

What that means is, the OP has two choices:

1. Go on the the internet and ask some people without legal training in different states from yours what to do about a situation where the facts are vague, or

2. Consult an attorney, give the attorney the agreement and all the facts, and see what the attorney says.  You can show the attorney the information in the settlement without violating any NDA.

 

Do I \need to say which path is wiser?

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