HELP! Need fast advice!

My previous posting was answered and was very helpful.... thank you all! But now it seems that it worked and I just want to make sure I am not getting into something that will come back and haunt me!!! One of my creditors agreed to a settlement.... which was too good to be true! And is the reason for my next posting! They agreed to have me pay only 40% of my debt, and once paid, would have the bureaus show the account "paid in settlement". Of course I had them fax me something to show in good faith, which they did immediately. First is this legal, and is a fax binding if we both keep to the agreement and Second, once done, can they still come after me legally? Or a third party come after me for the balance? Is there anything else I should do to protect myself? Please help!!!!! Thank you in advance!

If they agreed to settle on your acct, then you should be good to go once you pay them, especially if you got it in writing. Make sure you have them send you a settled in full letter once your check clears the bank (Personally, I would send a money order or certified check. It makes the process go faster). Then, once you have this letter, keep it forever. Just in case.

Well, to make the agreement binding immediately, I went ahead and posted a check by phone with a postdated check. But it is good to know that this will finally take this creditor off my back!!! Should I make sure a third party will not be collecting and starting this process all over again? Or will the letter suffice as evidence of payment in settlement?

[Ladynred]

Unfortunately, its very possible another CA will come sniffing around for the remainder, that's why your 'settled in full' letter is so important. You'll have to file it away and keep it for forever as it will be the only thing you have to stop another CA from hounding you for the balance.

BTW, 'paid for less than full amount' on your credit report is a negative entry, so don't expect any jumps in your scores after paying this.