any suggestions?

[greenpaladin31]

Hey guys. This is my situation...I had done a debt settlement on a credit card company so I could get all my credit debt out of the way for future BI. A couple of days later I received a letter from a law firm stating...

"This is to notify you that your account with XXXXXXX, account number XXXXXX has been purchased by XXXXXXXXX and has been placed with the firm of XXXXXXXX for collection."

Could they do that? It was settled over the summer and the account has been closed. I also googled the company that bought my account and some were saying that it is all a scam. I don't know what to believe right now. Any suggestions or anyone had any experience like this before? Thanks.

[highwayman]

Sometimes if the debt is a few months old sub collecting companies buy your contract from the original collector hoping that they will do a better job collecting and sometimes they do.

But if you already settled and worked out a payment plan with the original collection agency then it's case closed, the rest of the junk mail you'll get is because your name has been looked up somewhere in the computerized TRW system which triggers aggressive collecting agencies (who don't know that you settled) to start bugging you to settle your debts.

[Norm357]

Hey guys. This is my situation...I had done a debt settlement on a credit card company so I could get all my credit debt out of the way for future BI. A couple of days later I received a letter from a law firm stating...

"This is to notify you that your account with XXXXXXX, account number XXXXXX has been purchased by XXXXXXXXX and has been placed with the firm of XXXXXXXX for collection."

Could they do that? It was settled over the summer and the account has been closed. I also googled the company that bought my account and some were saying that it is all a scam. I don't know what to believe right now. Any suggestions or anyone had any experience like this before? Thanks.

Lawyer up. I declared bankruptcy several years ago and at the begining of this year, I was served by a collection agency for a debt that had allready been settled under the bankruptcy. It was settled with a phone call, but it was still embaressing getting served at work.

Collection agencies are the scum of the earth who buy old debts for pennies on the dollar figuring if they can get "some" money out of the debtor, then they are ahead.

[Taz_bb2]

It also depends on if you have the settlement in writing. NEVER, EVER, settle anything that pertains to your credit without getting it in writing.

You can call up, offer a settlement, pay it as agreed over the phone, and the very next day they can come after you for the balance. Verbal agreements hold no weight at all.

I settled a half dozen accounts about 10 years ago. Each and everyone faxed the settlement agreement to me before I sent them the money. Not a single one tried to sell out the balance to a collections agency, and I've never heard from any of them since.

If you have it in writing, go after the collection agency to make sure that they cease and desist all activities and that it doesn't go on your credit report. If it does, give them 30 days to have it removed or else hire an attorney to go after them for violation of the Fair Credit Reporting Act.

If you don't have it in writing, you may be SOL.

[kendral77]

May I also add that if/when a debt is settled, not only get it in writing, but under absolutely no circumstances, give them access to your account. THEY WILL WIPE YOU OUT if you do . . .

Source: Dave Ramsey and the Total Money Make Over