Debt "Settlement"

[odetoelvis]

What is the name of your state?What is the name of your state?Maryland

Two months ago, my boyfriend settled a debt of $2,000 for $1,400 with a collection agency. He recieved a call yesterday, from a different agency saying that he owed $600 for the same debt. My boyfriend told them that he had settled already and they said, "No, you just paid that portion with the other company, we are collecting the remaining $600." Is this legal? I have never had any credit problems and have no experience in this area. This $2,000 debt was run up by his ex-wifes boyfriend. They are dirt poor, and he knows he will get nothing from them, so he was just trying to get everything taken care of. Does he have to pay the $600 this new company is requesting?

I'd appreciate any help...thanks.

 

[cmorris]

What does he have in writing?

 

[TiredandCranky1]

What is the name of your state?What is the name of your state?Maryland

Two months ago, my boyfriend settled a debt of $2,000 for $1,400 with a collection agency. He recieved a call yesterday, from a different agency saying that he owed $600 for the same debt. Does he have to pay the $600 this new company is requesting?

I'd appreciate any help...thanks.

He should have gotten atleast a number verifying the settlement or a statement saying the debt has been settled. I would have tried to get them to go for a lower amount.

 

[Ladynred]

Yes, its legal, happens all the time, and unless your BF got something in writing stating that it WAS an agreed settlement, then this new CA is going to hound him for the remainder. Its a pretty standard trick of CA's to do this so they can get as much money as possible from you. If you don't nail them down in writing, you're basically screwed as they will sell the remainder to another collection agency as they have in this instance.