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Collections Law/2 collection agencies at one time

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Expert: Michael Brotherton - 6/2/2008


Question
My credit card company sold my account to someone else(LTD Aq.)  who in turn hired a collection agency to go after me.  After working out a settlement( I even received the offer on paper), I should mention that originally the collection agency said they sent it back to LTD , and as long as LTD didn't send it to a local lawyer they could handle it by contacting LTD and telling them I would settle if they get the account back.  The next day they(the collection agency) called me and said that LTD said it was ok and they(LTD) would send it back to them(the collection agency). A few days ago I received a letter from a local law firm/collections saying they were retained by LTD to collect the full balance.  How can it be possible for two places to try and collect from me at the same time, especially when I already worked out an acceptable settlement from the first collector, which by the way, after looking at the bank statement shows they took the money as per our agreement?

Answer
The question is were there any instructions or requirements in the settlement letter giving conditions to obtain the settlement? If you met the conditions and paid the amount agreed on then you may send a copy of the letter to the collection attorney and a letter informing them of the settlement they should drop the case. Otherwise contact LTD and advise them to cease collection. Send the letter by certified mail, return receipt requested. This should resolve the issue. If not, file a complaint with the FTC or the state attorney general.

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Michael Brotherton

Expertise

Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. Mike is well versed in Loss Mitigation practices and the legal collection process. He has helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. FinancialEmergency.com is a consumer web site which actively promotes Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).

Experience

Over 40 years combined experience negotiating disputes and resolving financial issues related to consumer debt, corporate issues and mortgage modifications.

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