What to do if you settled a debt but now a different collector is demanding payment?

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What to do if you settled a debt but now a different collector is demanding payment?

My wife co-signed a loan for our grandson which was turned over to a collection agency. A lump sum payment of$7000 was agreed on to settle the debt.The payment was made and now a different collection agency is threatening legal action if another $4300 is not made. What do we do?

Asked on June 6, 2012 under Bankruptcy Law, Idaho

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

I am hoping that you have papers from the other agency settling the debt in full, correct?  First you need to ask the present agency for "validation" of the debt.  That would be a copy of the original agreement, a copy of the transaction history on the account and a copy of their agreement with the original debtor allowing them to collect.  I would send them the settlement agreement with the original collection company (whom I hope was authroized as well) and call your state attorney general's office.  Good luck.


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