Help....collection agency not honoring the reduced settlement

[jlc614]

What is the name of your state? NY

I received a collection notice which offered a lower payoff if I sent the payment by a certain date and returned the letter signed that they sent me. It was a very simple letter explained the options...setting up payment arrangements for full amount or pay lump sum on settlement. I checked the lump sum payment, (of course mad e a copy) and sent bothe the original and the check to the company. The check cleared well before the dead line so I know that they received it in time and again I have a copy of the letter which I returned. Well I am still receiving notices regarding the account. Actually the first letter said thank you for your payment but we do not show payment arrangements on this account please notify us when the nexy payment will be received. I both called and wrote the creditor at this point....explaining what the letter I returned had said and that I wanted a letter showing that it had been paid as per the settlement offer. i have heard nothing more since then except for another bill which came about three days after I mailed my letter. What can I do to settle this matter...do they not have to honor the agreement that they offered...they cashed my check and I stated on the check "payment in full per attached settlement."

 

[Ladynred]

Was this letter from the collection agency signed by anyone ?
Did you sign the letter that you returned to them ?

Do you have any evidence that they received your letter, other than their next letter saying 'thanks for your payment' ? I'd have sent the payment and their settlement letter back to them certified, but not much you can do about that now. Did your return letter go to the same address that these new collection letters are coming from ?

Its time to send them a certified letter, stating that per THEIR letter (attach their settlement letter with important things highlighted !), you forwarded payment and consider the matter closed. I'd make this as strongly worded as you can that by continuing to dunn you, they have renegged on the agreement and if they do not honor the agreement, you will file complaints with the FTC, your State atty general's office and THEIR state AG's office, as well as the BBB. I wouldn't say you're going to sue them just yet, but I would if they continue to harrass you.

 

[kevinss]

Additionally, see if you can get a copy of the cancelled check from your bank. In New York, they may write "under protest or without prejudice" on the check, which negates the "paid in full" designation.
See if that happened. If they didn't, then the debt IS paid in full. If they did, they basically skee-rewed you intentionally.
Proceed the same way (the way Ladynred suggested) regardless. However, IF the check doesn't have the statement above on it, then the debt IS paid in full, and you have that cancelled check to use as proof.