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A Debt Settlement Company Paid a Creditor and They Now Say the Debt is Still Owed. – Ken

“Dear Steve,

have contract with debt settlement firm i have asked you things before was very pleased with your detailed answers

have you ever heard of a debt settlement firm paying a creditor acct. for a client and now they show i owe them

Ken”

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

Dear Ken,

I have seen the situation before. This can arise from one of two primary ways.

  1. The settlement deal was reached with an outside collection agent of the creditor who they will say did not have the authority to agree to such a deal.
  2. The settlement deal was not obtained in writing saying that the balance of the debt would be discharged.

I’d suggest you get your hands on the agreement the debt settlement company got from the creditor and produce a copy of that to the creditor in question.

Most of these issues are purely administrative and can be resolved with a copy of the settlement agreement.

Your debt settlement company should gladly help you to clear up this issue. If not, let me know.

Please post your responses and follow-up messages to me on this in the comments section below.

Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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