Legal Question in Credit and Debt Law in Pennsylvania

Making an offer is not an agreement. This is Contracts stuff from the first year of law school - to have a valid contract/agreement - you need a meeting of the minds on essential terms and at a minimum you need an offer and an acceptance.

So you making an offer is an offer only, not an agreement. If the debt collector accepts the offer on behalf of the creditor, you have an agreement, but it must be in writing. If it isn't in writing, nothing prevents the creditor from selling off the balance to someone else. To protect yourself from the debt re-surfacing again, you therefore need a writing from the debt collector which outlines:

(1) the name of the original and current creditor;

(2) the original account number and any current account number;

(3) any file or reference number;

(4) the full balance owed;

(5) if resolution is based on settlement for less than the full balance, the settlement amount;

(6) when payment is to be made (say end of the month and every 30th day thereafter or whatever the terms are)

(7) indicate who the check or money order is to be made payable to (ie name of creditor or debt collector)

(8) get a PHYSICAL (not mailing) address where payment can be sent; and

(7) get a statement that if funds are received, there will be no further collection activity and that debt will be considered as settled (if you are settling) and reported as such to the 3 credit bureaus by the creditor.

Before you send payment, make a copy of the money order or cashier's check (do not send personal checks or bank account information to do a check by phone). Send any payments by UPS or FedEx or certified mail. Track the package and get a delivery receipt. Follow up within 30 days after the final payment to get a final closure letter indicating that the funds were received and that the matter is closed, that there will be no further collection activity and that the matter will be reported as paid to the credit bureaus.

That is how I do it.