question for DebtCollector' and LadynRed

[nobody]

What is the name of your state? Tx

My question in what is the difference between an account being "settled" and an account being "settled in full". Can a "settled" account still show a balance due? Also, can a "settled in full" account also show a balance due even though I have not seen this before?

I am asking because I am trying to settle an account. I had 2 accounts and one letter states that when the agreed upon amount is paid it will be "settled in full". The other account being handled by another "recovery specialist" will not agree to a "settled in full" because she is stating that they only have preprinted forms and none say this. (????) Both accounts are being settled with the original creditors collections department and the lady in question is the supervisor I talked to who approved the first settlement agreed upon with one of the specialists who work for her.(????) Needless to say I am confused. I have already sent the money for the first settlement offer but I am leery of the wording of the second letter.

Are they trying to set this up as a continued collection after being "settled" and would it make any difference to get the settlement letter to state "settled in full". I am not worried about the derogatory of being "settled" as I need this done but the legalities of the wording.

Thanks in adavance.What is the name of your state?What is the name of your state?

 

[seniorjudge]

If it's settled, that means it is over.

If there is a judgment and they accept in settlement less than the judgment, then there should be a satisfaction of judgment filed.

If there is no lawsuit and you settle it (regardless of the amount) then the creditor should give you a full release and satisfaction of the debt and a promise not to pursue it any more.

 

[nobody]

Update... The account I asked about last November is being collected on for the remaining balance by the original creditor. Is this illegal? I have the settlement agreement which says they "...will accept $xxxx.xx as settlement on the above referenced account." and that any oustanding liens released and judgements satisfied. I had neither of these if it matters. Can they legally pursue this same account again after "settling". FYI on the other account they finally did show a 0 balance on my credit reports as of 2 months ago. Is there really a difference between "settled" and "settled in full."

 

[Chien]

You originally posted this to DC and LNR. If you’ll forgive an interjection, I regard it as a distinction without a difference. I don’t know whether you previously settled with a CA or the OC but, if it was a CA, it was done with the OC’s authorization and, if done on the agreed terms, that can’t be recanted by the OC.

To analogize further, with your reference to “judgements satisfied”, if I have a judgment and settle for less than the full amount owed, I’m legally obliged to still file a “full satisfaction”. I can indicate whether it was for all or less than all of the amount due, but it does not alter the fact that it is a full satisfaction and obviates any further legal rights to enforcement and recovery.

Aside from the fact that the OC is now coming after you, what is your status? That is, have you informed them of the settlement and the corresponding terms? If so, are they continuing? If not, tell them and show them. I’ll have to check “novation” and “accord and satifaction” under TX law but, on the information posted, I believe they have no legal right. I agree completely with SJ.

 

[nobody]

Thank you for your reply. The original post was made over 10 months ago and I would like any advice I can get. I originally settled with the OC based on a letter offering to settle the debt - it was about 4yr and 6mo old and past the SOL but I wanted to settle it anyway. I called and came to an agreement on the amount and terms - I was told it would be reported as "settled in full for less than the full balance" which is fine with me I just wanted to be done with it. I got this in writing except it said that the credit bureaus would be notified that this debt is "settled". It was never reported this even after several disputes. Now almost 11 months later I get a letter from a collection agency saying they have been assigned this debt (the original amount minus the amount settled for) by the OC for collection. I originally tried calling the number on the settlement agreement I have to speak to the account supervisor who made the agreement with me but they only work from 830am to 130pm and I missed her(yes she still works there). I have not tried to call back as I would like to know for sure where I stand on this first. Thanks for the help. I have settled other accounts with collection agencies since then that have only said the account would be "settled" and they kept their word and Zeroed the balancde and sent me 1099-c's. It may be a mistake on the OC's part but again I would like to know where I stand on this.

 

[TigerD]

It most likely is a mistake. Simply send them a dispute letter with a copy of the paid settlement letter and it should go away.

DC