Debt collection

[Stegal]

What is the name of your state?Idaho. In an attempt to get my financial afairs in order, I recently wrote a letter of settlement to a collection co. I owed $1600.00 on a medical bill, in the letter I offered to settle for $1000.00 total. In my request I added that I would be making 2-$500.00 payments the first payment being made at the acceptance of the aggreement, With the final payment ($500.00) to be made on a specific date (14 days later). In addition to the payment arangement the collection co. agreed to report the account paid in full to the 3 credit bureau's.
The aggrement was excepted and signed by the manager and a signed copy returned to me, at which time I made the first Installment. 14 days later as promised I went to the collection co. office to make the second and final payment. I was then greeted with hostility and anger citing that they could not except my payment as payment in full, and that they could no longer accept the agreement that that they accepted and signed just 14 days prior. In addition they would not even take my payment of $500.00.
Can they do this? Outside of law suit what are my options? As per my research I dont beleive I've done any more then a credit counselor would have done, I've just eliminated the middle man. What are my rights? Thanks for your help

[xylene]

You have not paid in full.

You have settled.

A credit counselor would not get you paid in full.

If you want paid in full pay 1600.

If you want to save 600 bucks you get a settled account.

You should not be conducting such matters over the phone, only by mail.

Perhaps you should consult with a lawyer.

[Stegal]

Thanks for your response. Let me clarify. first of all I have done nothing "on the phone". All has been done either in person or by mail. It doesnt matter to me what they want to call it settled Vs paid in full. They agreed in writing to show paid in full to the credit reporting agencys. But the question still stands. How can they dishonor there signed agreement?

[xylene]

Originally Posted by Stegal

How can they dishonor there signed agreement?

Easy. They have.

Now sue for your damages.

[nrknlknek]

Realistically, suing for damages is not an option. First, it is unclear to me whether or not you have a cause of action upon which any such relief could be granted. Second, the collection agency, it seems to me, would have defenses. You are in the same boat as you would have been j\had to you not made the deal that they subsequently (according to you) repudiated. I would pay it off as quickly as you can which hopefully will be prior to their being able to secure a judgment. If they do file suit, but you are paying it off; it is likely the Judge will compel them to take reasonable payments over time.