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Collections Law/debt settlement question



I'm in a bizarre situation and wondering if you can share some information or direction. I had a credit card that I could no longer pay on once I was laid off in 2010. In Jan 2012 I talked to them about a settlement- I asked them to call my father on the phone as well so I could get his advice before agreeing because I absolutely don't trust anything they say- so, my dad was on the phone and heard the terms of the settlement. I agreed to it and then made 3 payments over the next 6 weeks. That was it. Na´ve, I know. Now. I never had to settle any debt before so I thought that was it.

About 4 months later they started sending statements again and I let them know I wasn't happy to be hearing from them since I had, it appears they sold this debt to another company who has hired a law firm. They've called me and I refuse to talk to them. I do everything in writing now so today I received a letter detailing the original debt and indicating I have 30 days to deny validity of the debt etc.

What should I do? I paid the original creditor a settlement and apparently they turned around and sold it as though it were outstanding. I don't have anything about the settlement in writing- just my bank statements and my dad.

Thank you for your help,


You are wise to get everything in writing now, especially when it comes to financial matters. I always advise consumers to get settlement agreements in writing through fax or e-mail when they settle a debt. I would suggest you dispute the debt in writing stating the original amount, what the settlement was, copies of your bank statements and the amounts you paid. The new creditor should refer the account back to the original creditor according to the Fair Debt Collection Practices Act. You can also inform the new creditor that you dispute the validity of the debt and to cease all collections actions according to the FDCPA.

Good luck,
Gary Lee Gammenthaler

Collections Law

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Gary Lee Gammenthaler


Collections Law, Fair Debt Practices Act, Fair Credit Reporting Act, Credit Repair Organizations Act, Bankruptcy Law,etc.


25 years in the collection agency business, 5 years in credit repair business.

4 years Brigham Young University, 2 years Utah Valley University.

Past/Present Clients
Taco Bell. Tunex Automotive Repair, Carl's Jr, Sound Warehouse, 20 Attorneys in Utah, 40 Apartment Complexes in Utah.

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