If a debt collection account is "settled in full" can the original creditor still try and collect?

Question

I opened a cell phone account back in 2002 for a friend. I thought the account was switched to his name, but the phone company lied; they can't really do that, so it was still in my name. They kept charging the account every month, even tho it wasn't being paid on. In 2004 they sent collections after me. I was told if I paid 1/2 the balance immediately that the account would be settled. Now, 3 years later, they're coming after me for the other half. Can they do that? I have a letter from the original collection agency saying my payment was accepted as "full and complete settlement of the account."

Answer 1

What they're doing is totally and completely illegal. You have to take it up with the three credit bureaus (Experian, Equifax, and TransUnion). Send them a copy of the letter stating that the account was settled and accepted as such, and make sure you include the loan number. The credit bureau is the one who has to get it settled and OFF your credit report. To expedite things, I would also open a claim against them on the Better Business Bureau. A gym did a similar thing to me, and it was totally solved within two weeks. Don't underestimate them, they're fast, and what's more, they're free. Good luck!

Answer 2

No they can't do that. Are the people trying to collect the money the same company or is it a collection company that "bought" this account from the original creditor? If it is a different company you may need to get the original company involved to prove that the account is paid. Either way-pull your credit and see if this account is showing up there. If it is, you need to send a copy of the letter you have to the reporting agencies and have your credit updated. If this account isn't on your credit then it isn't really "hurting" you, other than the collections people being annoying as hell!
pull your credit for free once a year-
www.annualcreditreport.com/

Answer 3

Make a copy of the letter from the original collection agency and send it to whomever is trying to get you to pay. Send it via return receipt and preferably registered mail.

A settlement is just that. The collection agency, which is the cell companies legal representative, has agreed to settle for what you paid them. By extension the cell company has agreed to the settlement.

If they put anything on your credit report, contest it it and send a copy of the settlement letter. If they threaten to take you to court, tell them to go for it and tell them you will countersue.

Answer 4

All these answers are right, you should do all the things suggested (include the original notice for the full ampunt and your cancelled check copy fr the settlement payment if possible)and also contact your state attorney general office, especially if this cell phone company makes a pactice of deceiving consumers.

Answer 5

If the debt has been satisfied, then they are not suppose to still contact you in re: to a debt that has been paid. Check to make sure the info was forwarding to the original creditor. You can also send the original creditor proof that the company they paid to collect the debt in full accepted a settlement on their behalf. Hope this helps.

Answer 6

Yes, the original creditor has the right to honor or refute settlement offers. I can almost guarantee which cell company you're talking about. If it's the one I think it is, it's written into your service agreement that they have the right to expect full payment regardless.

Answer 7

No. Send them a copy of the letter from the collection agency along with their request for the other half and advise them if they continue to bill you that you will file charges for harassment.

Answer 8

you need to show them the letter that states your payments was accepted as full and complete settlement of the account.