Legal Question in Credit and Debt Law in Connecticut

Two years ago, my husband sent a final payment to Lowe's credit card, which had moved to Capitol One. But he sent it after Capitol One had changed over to GE Money Bank to service the account. When GE sent bills, he informed them he'd paid it off to Capitol One. When collection agencies contacted him, he told them the same, and yet they kept calling. So, now we're about to be sued, and I spoke to the collection agency myself and what was a 400 dollar debt is supposedly 1800, but they are willing to settle for 1200, or 1034 if we pay by the end of August. My husband still insisted he paid it, so I dug through our old statements and info from Lowe's. I found an unopened envelope from Capitol One and lo and behold, they had returned the check to us, instructing us to deal with GE Money Bank from now on. We'd apparently tossed it into the "closed" folder without a second thought.

At this point, is there any way we can negotiate a more reasonable settlement? My husband genuinely believed he had paid in full (the check was for the full balance at that time). I called the agency back yesterday, and she did not return my call...and the first payment is supposed to be taken from my bank account this Friday. I'd really like to know if we have any leg to stand on at all here? Thanks.


Asked on 8/19/09, 7:09 am

1 Answer from Attorneys
Linda Subbloie Linda A. Subbloie, Esq.

Unfortunately, this is one of those situations when good intentions really has no relevance. The lesson to be learned is follow up on debts that you believe you paid off. (or, balance your check book)

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Answered on 8/24/09, 7:34 am


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