collection agency

What is the name of your state? Indiana

About a month ago I received a letter form a CA that they had received permission from their client to settle for 65% on a credit card debt. I called them back to make arrangements to do this and agreed to pay this off with 2 payments. The CA is now saying that they have no record of this and won't stick to the agreement. They say I have to prove it. I have tried to talk to them but they refuse to budge. They are now saying that if I don't make a payment on the full amount that they will start calling everyday. I talked to a lawyer but he said that they can do anything they want and I can't do anything about it. I had already made one of the payments. Am I up the creek without a paddle or is there something I can do?

Jerks. This is all too common.

Indiana allows for accord and satisfaction (See Indiana Code 26-1-3.1-311)

Send them a letter (certified, RRR) explaining to them that you had a settlement agreement that you attempted to honor in two payments. Let them know that they dishonored their word and that you intend to send a restrictive endorsement check after 30 days have passed, giving them time to object. Let them know that deposit of the check constitutes an accord and satisfaction, and discharges their claim against you.
Send this letter out and give them 30 days to respond.
If they do not, or respond saying that it's okay, send them another letter stating that you did not hear from them (or received their letter, dated *whatever*) Include the certified mail number of the first letter you sent, along with a COPY of the return receipt card (indicates they got the letter). Include a paper check for the remaining payment with the words "Tendered in full satisfaction of claim" written in the memo area.
They will see this and likley cash the check. Not doing so will necessitate the waste of additional funds and time to collect on the balance, and it's not worth it to them to do that. Once they cash the check, any additional claims they have against you on that debt are waived (also state that in your letter, again.)
Include in your letter that you require the return of the instrument (check) within 90 days if they do not agree to the accord and satisfaction. State that if they deposit the check, they are to cease all further communication with you.
If they do not agree, they will return the check and you can try again later.

Sample accord and satisfaction letter can be found at:
[url]http://www.creditinfocenter.com/forms/sampleletter3.shtml[/url]

This is geared towards residents of California (because their accord and satisfaction procedures are specific), but it's a safe path for you to follow as well.

You're not trying to "get away" with anything by doing this - just forcing them to honor their initial settlement agreement (which was pretty high in the first place. They're making out like royalty on this deal.)

If they don't agree to the accord and sat, just wait a while. Communicate with them ONLY by mail. If they call, tell them to put whatever they have to communicate to you in writing. Tell them you refuse to deal with them on the phone. They'll still call and try, but hey.. let 'em. Turn your ringers to "low" and think of them as sweet, soothing music.
You can make a few settlement offers by mail, citing your first payment in every single one of them (these agencies tend to conveniently forget about funds you already sent them when it serves their interest.) It probably won't come to that.

If you need more info or are not clear on ANYTHING, please ask for more help. We'd be happy to

Thank you Kevinss!! This info really helps!!

[Ladynred]

You have to remember one thing - if it ain't in writing, it don't count .. (bad grammer intended .. lol)

Your verbal agreement meant nothing and they, predictably, ignored it.

From now on, do everything in writing ONLY. If you want an agreement.. get signatures first.