Legal Question in Credit and Debt Law in Virginia

I had an RV charge-off in the amount of about 44k several months ago and am trying to get the debt resolved via settlement. It has since been placed with a collection agency and they told me that the original creditor would be willing to settle account for $10,000. I have received the settlement letter in writing and also confirmed debt was placed with the agency from the original creditor. They advised me that I would receive the title about 2 weeks after the payment is posted to the account and it is sent back to the original creditor. It does not state this in the settlement letter as the collection agent told me they are unauthorized to put that in the letter since they do not own the debt. I contacted the creditor and they verified that the title would be sent upon settlement but they also said they are unable to put this in writing and to deal with the agency directly. They told me it should state that in the original contract, which I looked over and couldn't find anything relating to settling on a default and receiving the title. Original loan was taken out in state of Virginia. Is the settlement letter enough to fork over thousands of dollars or do I need extra protection that they will send the title. Settlement letter states account number of original loan, total balance owed, and settlement amount to settle account with an expiration date and current date. Any insight would be helpful. Thank you


Asked on 10/11/16, 5:59 pm

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

I see no credible reason as to why this creditor should not be willing to memoralize in writing the issue as to the settlement resulting from your default

and the sending of the title to you (which presumably is in their possession) after your payment of $10K has cleared.

And, consequently, I have to conclude that since you have nothing in writing

in regard to your right to receive this title in return for the above-referenced payment,

(and, furthermore, the creditor's apparent refusal to provide such),I believe this could prove problematical for you if you proceed with this purported "settlement" without some written assurance in regard to this issue.

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Answered on 10/12/16, 7:35 am


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