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Question
I live in Az and have heard that even if one settles with there creditor or collection agency by making a lump sum payment and has in writing that the account will show paid, that they can turn around and still sue you for the unpaid portion....This true? Why would anyone attempt to settle if that is true and just file bankruptcy instead?...
James,
Good question. If you have a settlement-in-full agreement in writing from the creditor, they can not then sue you for the remainder. If they do file such a lawsuit, the settlement agreement should be enough to get the collection case dismissed. As such, it is important to get the agreement in writing from the creditor or collection agency that the payment is "payment in full".
Some unethical collection agencies do sell off remaining balances to other debt buyers, as there is no honor amongst thieves. However, if a consumer is sued later by such a subsequent debt buyer, the settlement-in-full agreement the consumer had with the previous debt buyer or collection agency should be enough to get any collection lawsuit dismissed.
Hope this answers your question. If you have any other questions, please do not hesitate to ask.
Jason A. Shear, Esq.
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Answers by Expert:
Jason Shear, Esq.
Expertise
I can answer questions for residents of New York and New Jersey regarding creditor harassment claims under the Fair Debt Collection Practices Act (FDCPA); credit reporting errors under the Fair Credit Reporting Act (FCRA); debt collection defense/credit card defense; student loan law; and consumer class actions. I can also answer questions relating to consumer debt defense/collection agency defense, specifically pertaining to consumers being sued or harassed by collection agencies or NY collection attorneys. If you live in New York and have been contacted or sued by firms such as: Mel Harris & Associates, Forster & Garbus, Rubin & Rothman, Choi Law Office, Lacy Katzen, Malen & Associates, Solomon & Solomon, Daniels & Norelli, Cohen & Slamowitz, Pressler & Pressler or others; give us a call at (716) 831-1111.
Experience
I have obtained settlements for consumers in NY and NJ under the FDCPA and FCRA. I have successfully defended consumers who were sued by collection agencies/debt purchasers in the New York State courts. Visit our website at: www.brentandshear.com
Organizations
National Association of Consumer Advocates (NACA)
Brent & Shear, P.C.
Consumer Attorneys
3957 Main Street, Second Floor
Buffalo, New York 14226
(716) 831-1111
Education/Credentials
BA/BS, Accounting & Political Science, Hunter College.
Juris Doctor, Univ. at Buffalo Law School.
LLM (Criminal Law), University at Buffalo.
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