Creditor

[crusheroz]

What is the name of your state? WA I just recently settled a debt for a phone bill (Qwest). The payment was sent to the collection agency (RCO). The payment was a settlement of 20% less than the balance. I still have the letter for the CA offering this. Yesterday I recieved a letter for another collection agency trying to collect the rest of the balance. Isnt the some how illegal on Qwest part. I settled the account, I have proof of payment and paperwork, shouldnt this account be closed out? What else can I do?
Thank you!!!

 

[Ladynred]

Unfortunately, if you didn't get them to send you a 1099-C (cancellation of debt income), then it is perfectly legal for them to sell the remainder to another collection agency.. stinks but its true.

Did you get anything in writing from either the CA or Qwest that said your debt was paid in full ? If so, you can *try* sending that, along with a dispute letter, to the new CA but it may not get you very far.

That's always the risk with settling - you thing you're doing the 'right thing' and then it comes back to bite you yet again just when you thought you were rid of it.

 

[crusheroz]

The 1099c is for debts of $600 or more. This was a $350 phone bill that I settled. I paid 80% of the bill (20% less). The letter states that this amount will settle this account and it will be closed. So when the CA sent the money or how ever they do it to Qwest, instead of Qwest closing it out, they sent it to a new CA. I believe they only way a CA can offer a settlement is if the original creditor agrees to it.

 

[Ladynred]

Not exactly true. The 1099-C will totally cancel out the debt, regardless of the amount. If its not $600 or more, then it just isn't reported to the IRS on your taxes.