Legal Question in Credit and Debt Law in California

Re: Letter claiming debt settled

If the check you sent them to settle the debt bounced, I have to believe that all bets are off in terms of a settlement of the obligation. A letter from their company should be binding, so long as you complied with the terms of that settlement. Failing to pay it by bouncing a check almost certainly would be considered a breach of a material term of the agreement, and put you back at square one. Without further information, if your check bounced, I would have to say you still owe the entire amount and have to start over. If, however, the check did not bounce, and you have a letter from them saying they have or will accept payment of $x as full settlement of the debt, and you paid $x, then you have a good argument you no longer owe them anything.

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