Voiding a collections agreement

[ivanmo]

I recently reached an agreement to pay an old bebt with a collection agency after they offered to reduce my debt amount. However, a few days after our agreement (which took place over the phone), I was told that it had been voided by the firm's attorney after he had determined that I could pay a greater amount than what I had been originally offered. When the agreement took place, I had given them a credit card payment for 80% of the negotiated debt with the remaining balance payable in 2 weeks. Now, the collection agency is demanding $2000 more and has told me that it will refund me my previous payment if I cannot come up with the additional money and take me to court for the original debt amount plus their attorney's fees. Is this action legal despite the fact that we had a previous agreement to repay the debt? If so, what can I do make the collection agency adhere to it? I want to clear this account, but feel that the collection agency is being unfair.

 

[I AM ALWAYS LIABLE]

My response:

1. You didn't get it in writing before you paid.

2. You acknowledged the debt, thereby starting the Statute of Limitations clock all over again.

3. What they did is legal. You never had a bonifide contract because it wasn't in writing. Certain contracts over a certain dollar amount MUST be in writing, or they are void.

But, you never mentioned your State, so I can't give you specifics.

Because of how you handled this situation on your own, without legal advice, you have basically screwed yourself, and you now owe the entire amount.

Good luck to you.

IAAL

 

[waynab]

hello from tennessee. you need a lawyer and fast. i have always understood that if your check is cashed by a creditor that means acceptance of the monthly payment. i think credit cards might fall under this too. you might want to check out your local consumer credit counceling agency. they are non for profit organization and can help you. at the very least, they can make a deal with these people before it goes to court. they can get the interest ceased and sometimes the amount reduced.