Collection over settled debt

by Wendy

I settled a credit card acct two years ago along with another account with the same creditor. The agreement was 12 monthly payments, which i made on both accounts through debt settlement company. The one account was settled and closed, but the other one never got settled and closed.

Now a collection lawyer is calling me saying I never made the payments. I sent him proof that I made every payment. Now he wants a letter stating the account in settled. I never got one on the other account, but that one is done and over.

Does this happen a lot and will I be victorious if they sue me? This is the end of a long battle to get all my accounts settled and paid off. My parents helped me and I am on the road back.

I even have a credit score of 683, which isn't too bad. Can you give me advice on what to do in this situation? The lawyer is a real jerk and acts like he has never spoken to me before when he calls.

Comments for Collection over settled debt

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Feb 02, 2010
debt settlement no proof
by: Gerri

Let me get this straight Wendy - you paid a debt settlement company to negotiate your debts and they never gave you written confirmation that your debts were settled?

You need to go to the settlement company immediately and ask them for proof that the debt was settled. If they did not get proof that the debt was settled from the creditor, then they were not doing their job. Please take this step first and let me know what they say.

As for the debt collection lawyer, he has to follow the same rules as every other debt collector. Don't let the fact that he is an attorney intimidate you.

Use our free Debt Collection Worksheet to keep track of your conversations with him. I'd also recommend you at least read the first chapter of our ebook Debt Collection Answers, which you can read online for free to give you an overview of your rights when dealing with debt collectors. For the time being, if he calls, just tell him you are researching the matter and will get back to him shortly. Be firm.

In the meantime, the settlement company should be assisting you. Let me know what you find out OK?

Feb 02, 2010
Be Proactive
by: Michael@CRN

Hi Wendy,

You should demand a complete accounting from the settlement company of how all fees and payments were collected, disbursed, transacted (including dates).

At this stage I suspect the attorney is representing a debt buyer and will have to prove the claim if challenged by you now, or through discovery if it gets to the courts. The burden of proof is on them to show they are trying to collect a legitimate debt.

Your situation will unfortunately happen and can get complicated without the appropriate settlement documentation. That being said, be proactive now in gathering up all documentation to support you position that the account has been settled... just in case you need it.

Michael Bovee
CRN

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