Legal Question in Credit and Debt Law in Pennsylvania

You probably do not want to settle a case with a collection agency without having a consult with a consumer attorney.

Collection agenices can rarely prove a case against you in a court of law and you may be literally throwing money away.

My office offers a free consult on collection agency cases, and most other consumer attorneys offer the same as well.

Has the collection agency validated the debt? When did the account go into default? Can they provide you with proof that they have acquired the debt from the original creditor? If it has been less than 4 years since the account went into default and the other requirements have been met, then you can probably safely pay.

The settlement letter from the collector must state:

(1) the original creditor;

(2) the original account number as well as the collector's reference number;

(3) the full balance;

(4) the settlement amount;

(5) explain how the settlement amount will be paid (lump sum or in installments of so much per month);

(6) set forth the due date for the payments;

(7) explain how the debt is payable (check, money order, check by phone) (I am not a fan of check by phone);

(8) explain to whom payment is made (the collector or current creditor)

(9) explain where to direct payments - get a physical address if using UPS or FedEx (yes, it costs more but either send via certified mail or use a service like UPS or FedEx so that you can track the shipment and delivery)

(10) get a statement that when all the settlement amounts are paid, the debt will be considered as settled in full and reported to the credit bureaus as settled.

If your letter does not have these items in it, then they need to re-do their letter and do it right or else they do not get paid at all.