Legal Question in Credit and Debt Law in Illinois

Negotiate settlement

I am going to try and negotiate a settlement with a collection agency, I heard that if they agree to the amount and the money is paid to them, they can then hire another collection agency to go after me for the remainder.In some states this is against the law, but Illinois, where I am, was not on the list. Please advise. Thanks


Asked on 8/24/07, 10:22 pm

1 Answer from Attorneys
Lesley Hoenig Lesley A. Hoenig, Attorney at Law

Re: Negotiate settlement

I think what happens is the original credit sells the debt to many debt collectors. As a result, it is possible to have multiple creditors attempt to collect the debt against you. So you would not want to pay a settlement, unless you receive something in writing indicating that the settlement is being received as payment in full. If you have proof of that, then you should be able to defend against any other collectors' claims that you owe anything.

Something to keep in mind as well, if any said collectors sue you, make sure to appear at court, and request a trial (and appear at the trial). Do not let them obtain a default judgment.

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Answered on 9/04/07, 6:01 pm


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