nco

If you did not stipulate that Arrow not sell off the remaining balance as part of your settlement, then yes.

seriously they can really sell off the settled portion of a debt? does this happen often? i have several settled accounts and that was never stipulated to my knowledge-i'm getting kinda worried now...

Happens all the time when dealing with Junk Debt Buyers. Remember: There is no honor among theives.

I hope you have that settlement documentation and proof of payment. If so, tell them you won't pay them a dime unless you are forced to in court (and if they manage to get the judgment you will appeal) so they should go pound sand. And if you got a 1099C for the written-off portion of the debt, even better.

A reasonable person would consider a settlement offer to forgive the remainder of the debt and I have absolute confidence that, even if the local county judge is corrupt, the appellate court will find in favor of the alleged debtor.

It's called "zombie debt", the newest scam - is what it sounds like. Here is an article on Forbes about it and some things you can do:
"http://www.forbes.com/2008/10/31/debt-creditors-default-pf-education-in_af_1031investopedia_inl.html"