Legal Question in Credit and Debt Law in Ohio

Collection Account Satisfied - Then Disputed

Recently a law firm acting on behalf of the State of Ohio Attorney General collected a debt from me and closed the account based on our agreement. The original debt was for $3500 and the final settlement agreed upon with the law firm was $1800. I sent the check for $1800, made out to the State of Ohio, and their office cashed the check. The law office also sent me a letter saying that ''the account is satisfied in full and that they are closing their file.''

This was completed roughly 7 weeks ago.

Yesterday, I spoke with the law firm about the payment and they said the State of Ohio rejected the payment and wanted the full $3500. Can they do this? The law firm acting on behalf of Ohio negotiated a settlement, I completed my end of the deal and the state of Ohio cashed my payment check 7 weeks ago.


Asked on 9/18/03, 11:19 am

2 Answers from Attorneys
David Slater David P. Slater, Esq.

Re: Collection Account Satisfied - Then Disputed

Hopefully, you indicated on the check " payment in full". If not, you may be able to rely on the attorney letter (as agent for State of Ohio) should they sue you.

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Answered on 9/18/03, 12:37 pm
Guy Lewit Guy Mitchell Lewit, Esq.

Re: Collection Account Satisfied - Then Disputed

The law is that an agent can bind its principal if the agent was acting with authority to do so by the principal. It appears the law firm was retained by OHIO to collect debts and my guess is that they had authority to settle. You have to show that there was a settlement and that would bind the State of Ohio...(they can get the funds form the law firm if the law firm did not have actual authority from its client..but that's not your problem.) Tell the law firm that as far as you are concerned, the matter was resolved and you are not paying ONE MORE CENT. Don't offer to pay anything as that would negate your claim that the matter was settled. Of course, they can still sue you...they just can't win (if what you've set forth is accurate) but you'd still have to defend yourself.

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Answered on 9/18/03, 12:45 pm


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