Legal Question in Credit and Debt Law in Massachusetts

Re: Did the creditor renige on settlement?

The answer to your question may depend on whether the creditor ever accepted your offer of settlement. It sounds like they did not accept your offer. The fact that they cashed your check doesn't necessarily mean that they accepted the terms of the settlement offer - although it does slightly muddy the waters.

You should take the paperwork to a consumer protection attorney in your area to review the debt, the agreement, and other paperwork to determine the rights and liabilities of the parties.

Re: Did the creditor renige on settlement?

Unless you have a document signed by the creditor agreeing to accept less than the full amount of the debt you must pay it.

If you have documentation you believe binds them to accept the lesser amount in full, bring that to an attorney to review it.

Re: Did the creditor renige on settlement?

The central issue in your question is whether an "accord & satisfaction" has occurred between you and the creditor. Pursuant to Massachusetts Law, the elements needed for a valid accord & satisfaction are; 1)a bona fide dispute, 2) an agreement whereby the creditor will accept less than the amount he originally claimed due and debtor will pay more than the amount he originally claimed owed and 3) actual payment and acceptance of such amount (see Rust Eng'g Co. v. Lawrence Pumps, Inc. , 401 F. Supp. 328, 333 (D. Mass. 1975). The issue is fact specific. Please feel free to contact my office for a free initial consult based on the facts of your specific situation.;))