Debt Settlement Agreement Broken?
Date: Wed, 07/04/2012 - 20:40
I owed $15000+ to American Express and it's been with collections moving from one to another for some time. I finally got a call from First Source Advantage and about a month later I was in a position to offer them a settlement, so I called them. They agreed to $3500 to settle the whole account. They emailed me a PDF letter stating the agreement. I have record of the email communications between us. Now, I see that the $3500 has been applied as a payment to my account at American Express, and the account is with another collector. So, is this typical behavior? They try to scam me? Do I have to get a lawyer and sue? What can I sue for? The $11000+ balance, the $3500, more? Thanks!
I'll attach below the PDF letter they sent me (with my personal info removed)
Simply send them a copy of the settlement agreement with a copy
Simply send them a copy of the settlement agreement with a copy of the cancelled check and a cease and desist letter. Also notify amex. It is more than likely a clerical error with the coding of the account.
Sure you could sue but you would need to show damages of which you have none.
Well, who do I contact with the cease and desist letter? The ne
Well, who do I contact with the cease and desist letter? The new collection agency? They might stop their efforts to collect, but is there any way I can get the charge off reported as a settlement on my credit report?
About contacting AMEX, I did this, and the rep just told me that the $3500 was applied to the balance as a normal payment and gave me the name and number of the new collection agency.
Thanks guys!
Has the new collection agency contacted you? Was your payment
Has the new collection agency contacted you?
Was your payment received by the deadline date on your letter?
I would send the settlement letter and copy of your proof of payment to AMEX and ask them to mark your account properly.
If the new collection agency contacts you, send them a copy of your letter and canceled check along with the demand to cease communication.
If your account doesn't get updated properly, dispute it with the credit bureaus and include a copy of your settlement letter and proof of payment.
Well, thanks for the replies guys. It appears I may have been a
Well, thanks for the replies guys. It appears I may have been a bit hasty. First Source used to be called Account Solutions Group, but the AMEX reps didn't appear to know this (understandable), and I didn't see it with a quick Google, although I may have been able to find it had I been looking for that. I had send them an email the night of July 3rd, and they promptly called me back today telling me that the AMEX account should update and report as settled in a few days or a week maximum and he gave me a number of the top guy to call if it doesn't happen. So I think they have the right intentions.
Thanks guys!
