Legal Question in Credit and Debt Law in Illinois
How do I protect myself when paying off debt to collectors?
I am trying to settle a debt with a collection agency over breaking a lease at an apt. complex. The collector told me that he is willing to settle for half of the owed amount but will not send me any pre setllement papers stating the amount agreed upon will be for full and final payment. How do I know that once I send him half of the amount he wont say thank you for the first half? How do I insure that the amount I send him will be for full and final payment of the judgment?
2 Answers from Attorneys
Re: How do I protect myself when paying off debt to collectors?
You don't know. In fact, even if you had those papers, they mean nothing. The original landlord, or the collection agent can still try to get the other half from you.
Since, in their opinion, you already owe the money, their "release" does not provide consideration, and thus the papers are not binding.
Good luck
Re: How do I protect myself when paying off debt to collectors?
You are quite right. There is no assurance that they will not later try to colelct the other half of the debt. Collection agencies are often predatory and deceptive in their tactics. They push the boundaries of the law, which is why federal debt collection law is so restrictive upon the tactics that can be employed by a collection agency.
If you orally agree to send half as full satisfaction of the money due it is simply your word against his.
Very truly yours,
Thaddeus J. Hunt, Esq.
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