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Can the balance of a settled debt be sold?

I settled two debt for less that the full amount (which is reflected on my credit report). I have been contacted by a company that says they are collecting the remaining balance on the debts. If the original creditor settled for a lesser amount, how is there a balance? Can they do this? I have ask for validation of the debt.




keystrokes
Debt Samaritan
Posts: 496
Credits: 7333.15

Sub: #1 Yes, a creditor can sell off the remaining balance to some compa
Mon, 11/06/2006 - 11:39

Yes, a creditor can sell off the remaining balance to some company who in turn, can attempt collections. You can save this from happening if you have a "PIF" from the original creditor saying that the debt is paid off and you owe nothing. Do you have anything like this so that you can show it to the new company and prove that you owe nothing from the original balance. If you don't have this letter, contact the original creditor and place your request in writing.




Unregistered

Sub: #2 But if the original creditor agreed to a less than full amount t
Tue, 11/07/2006 - 07:41

But if the original creditor agreed to a less than full amount to settle a debt, how is there a remaining balance? If they agreed to the settlement then I would think they are agreeing to an amount to pay off the account. If the account is not paid off then why should any debtor agree to settle an account.




keystrokes
Debt Samaritan
Posts: 496
Credits: 7333.15

Sub: #3 How will you prove that a settlement happened with your original
Tue, 11/07/2006 - 16:11

How will you prove that a settlement happened with your original creditor? They offered you a less than full amount and you agreed to it and did the payment. After that, did you keep any proof mentioning that the creditor closed the account? If you don't get this in writing from the creditor, they will sell the balance to some other company at your back. Since you lack proof of this account already settled with the original creditor, the CA will try to stay on top of you unless there is something to prove that this debt was taken care of. If there is no proof, they will say, it never happened.




DebtCruncher

Posts: 2298
Credits: 26979.080293007

Sub: #4 Debtor has the burden of proof...
Tue, 11/07/2006 - 17:59

Keystrokes is right. If they just applied your payment to your balance, and never actually wrote off the rest, how do you prove that they actually agreed to settle.

Big companies record all their phone calls, but do you? If you agreed to the settlement over the phone, then you really have no proof that they agreed to accept your payment as a settlement.

Collectors will say anything to get you to give them money "now" and they bank on the fact that the uneducated consumer doesn't keep evidence of a transaction.




Unregistered

Sub: #5 These were paid with a refinance of our home. I got letters fro
Wed, 11/08/2006 - 07:21

These were paid with a refinance of our home. I got letters from 3 different companies agreeing to an amount to settle or payoff the accounts. The money was sent by the title company to all three accounts. I have gotten calls from collection companies about all 3 of the accounts. Office One Superstore account was in collection by a collection attorney in my state. Cavalary callings about a Providian account and 3 different companies have called about a Sears account. I have provided the settlement letters for the Providian and Sears accounts and proof of payment from the title company to each of the collection companies. The Office One was paid if full, but I also get calls from several different companies about the balance owed on this account, which was paid in full, meaning there is no balance due.
So I do have proof and have provided it, now what?




FYI

Posts: 1950
Credits: 20054.35

Sub: #6 You need to fax/mail them a copy of your proof of account settle
Wed, 11/08/2006 - 19:58

You need to fax/mail them a copy of your proof of account settlement or balance in full.

_________________

[img]http://i226.photobucket.com/albums/dd107/unclewulf/DCC/untitled.jpg[/img]




Unregistered

Sub: #7 I have provided proof of settlement and payment in full. This d
Thu, 11/09/2006 - 08:37

I have provided proof of settlement and payment in full. This doesn't seem to make any difference with the collection companies. I just don't see how the original creditor can sell a balance when they agreed to a settlement, but evidently a lot of companies have this practice.




Unregistered

Sub: #8 ready to pay negotiated amount
Wed, 01/07/2009 - 20:31

i recently had a bankruptcy dismissed because i could not pay the trustee the monthly amount ( 100% of my debt was the amount i had to pay while in bankruptcy protection ) the first creditor has called and offered a reduction of 40 percent..i want to pay, but do not know what to ask for in my part of the negotiation, as proof of the debt being settled, and what to have the credit card company put in writing so that they cannot sell the remaining part of my debt sold to someone else




Unregistered

Sub: #9 I settled several debts with less than full payment. All over th
Wed, 01/07/2009 - 20:42

I settled several debts with less than full payment. All over the phone nothing in writting. At the time I didn't think nothing of it but now within the last 6 months I have been sued by 3 different ones for the remaining amount. So far I have had one dismissed without prejudice(LVNV) Had court today with CACH waiting to hear back from my lawyer on the out come. And I just got served yesterday by LVNV again for a different account court date 1/27/09. So far no one has been able to vailadate the accounts. But I hoping they will all end this way because I PAID and don't want to pay again. The OC can't do anything for me. Some of them have actually marked on my credit "settled for less than full". I'm thinking i'm getting sued left and right cause the SOL is up this year.




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