Expert: Creditwrench - 5/26/2009

Question
My mother passed away earlier this year and I (her daughter) am handling the
settlement of a large amount of credit card debt.
I have offered the collection agencies an equal (albiet very small) percentage
of some money I had set aside to settle these accounts and I have been
successful in settling a few of them. Today however, I have come across a
new term I do not understand and subsequently this opens up a follow-up
concern.

One of the collection agencies say they can accept the payment but it will not
be a "Settlement" but only a "pro-rata payment" on the account. I am
wondering what the term "pro-rata payment" means and what the difference
is (legally speaking) between the two options.

My second question is regarding the accounts I have already settled with. The
letters I wrote all specifically stated that I would pay a certain amount in
settlement of the account, the amount was accepted and I paid it. The term
Pro-rata payment was never brought up. However, I have not received a final
letter stating that the account was settled. If there is a big difference between
"settlement" and "pro-rata payment" Do I need to be worried about these
accounts as well?

Answer
The first question that has to be answered is whether or not your mother left money with which to settle her accounts. If she did you should use that money to pay her creditors but only if you can pay in full. Never make payments to any of her creditors but rather only payment in full and only by U.S. Postal Money Orders or bank certified cashier's checks but never from any of your own accounts. All such payments should be sent by certified mail, return receipt requested.
Your name should not appear as the sender on any of the money orders or on cashier's checks unless you sign as estate of (Ms. ????? ?????)
Be sure you don't get yourself personally involved in any way except as acting on behalf of your deceased mother.