I settled a debt but I’m still being collected on. What should I do?
You settled a debt and now you are still being collected on for that debt.
Maybe you owed $5,000 and settled for $3,000, and now they say you owe $2,000 on your credit report.
Or maybe it’s not on your credit report, but you’re getting calls and letters from collectors saying they want the other $2,000.
This is something that happens more than you would expect.
What should you do?
The simple answer is you start suing the bad guys.
We sue them under the Fair Debt Collection Practices Act (FDCPA).
Sometimes we do a dispute through the credit bureaus. If they don’t fix the problem, we are able to sue them under the Fair Credit Reporting Act (FCRA).
The point is that the bad guys should be sued.
Who are the bad guys?
Whoever you settled with.
If it’s a debt collector and they are still reporting and trying to collect, I would certainly sue them.
What if they sell the debt to another debt collector?
Now the new collector is calling you, writing you, credit reporting on you, and trying to collect this debt.
So, I would sue the new debt collector because there is no longer any debt to collect.
The balance is zero.
There is no longer anything owed.
Therefore, the is nothing for them to write about, call about, or credit report on.
I would also sue the original debt collector for this because they knew the debt was settled and they still sold it.
They sold a bogus debt to the next debt collector in line.
They knew that when they transferred this debt, the next guy would call, write, and credit report.
So, we sue both of them.
Let them argue back and forth.
The new collector will try to say they didn’t know it was bad debt, the other guy didn’t say it had been paid.
Okay, now let’s see if they will swear under oath and say that again.
The old company that sold the debt will say they told the new company it was a paid debt.
Or they claim that when they sold it that they make no representation that any of this information is accurate.
They were buying it “as is.”
We want them to fight about this, each blaming the other.
At this point, we can just sit back and enjoy the show.
It makes things easier for us when the defendants turn against each other. The more they fight, the worse it is for both of them.
So, if you have settled a debt, but someone is still trying to collect this debt, figure out who you need to sue for money damages.
Maybe it’s just the original debt collector that you settled with.
Or it could be both the original collector and the new company who bought the bad debt.
Whatever the case, take action and hold the bad guys accountable.
If you live in Alabama and you have any questions, feel free to get in touch with us.
We would be glad to help you in any way we can.
You can reach us by phone at 1-205-879-2447, or you can fill out a contact form and we will get in touch with you quickly.
Thanks for reading!