Legal Question in Credit and Debt Law in New York

settlement agreement

I owed money a collection agency took the debt. after paying over 2000 on a 3700.00 debt, I was sent a payment notice for 2900.00 I contacted them and the agency agreed to accept a lum payment of 2060.00 by the end of august. I received the settlement agreement in the mail dated same. today I got a call from another collection agency and i was told the original agency with whom I have the settlement agreeement gave it to them an now neigher party is willing to accept the agreement. I believe that this document is binding on the original agency and any other agency to whom this debt was transferred to. I dont know if I should send the money to the originating agency since they no longer hold the creditor's lien on me for the money. If I go to court will the settlement agreement be condidered binding on either agency and will this document prevail?


Asked on 8/25/05, 8:57 pm

1 Answer from Attorneys
Guy Lewit Guy Mitchell Lewit, Esq.

Re: settlement agreement

You would hve to check out the agreement sent to you by the first agency. If they were the authorized agent of the creditor and you accepted the settlement offer and are not in default of the offer I think you could pay it and the court would not allow the 2nd agency to continue against you. The first agency had impied authority to settle, if not actual authority. THe thing I find odd is that if you paid $2000 of a $3700 debt you should only owe $1700 and if you settle it should be for less, not more. Many judges don't allow agencies to add interest on principal while you are paying, but that is up to the Judge. To be safe, I would say your agreement at $2000 is binding (IF THEY ACCEPTED WHAT IS IN EFFECT YOUR OFFER TO PAY $2000).

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Answered on 8/26/05, 1:18 am


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