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I’m Working With a Debt Consolidation Company But Have Two Attorneys Trying to Collect The Same Debt. – Luisa

“Dear Steve,

I am working with a debt consolidation company who have made settlement arrangements for all my cards. Unfortunately, I had a court case filed against me by Collections Attorney A (don’t want to mention Attorney’s name) for my last card. I was able to make a settlement agreement (with signed documents as proof) on that card and assumed that Attorney A would file an update on the settlement with the court. Next thing I know, Collections Attorney B sends me a letter for the same card asking me to pay the debt in full in 30 days, which I can’t do.

Is it legitimate for a card company to hire two different collection attorneys/agents at the same time? How can they both be coming after me at the same time?

Luisa”

Dear Luisa,

It sounds to me like we have a special and technical situation that those of us debt professionals call a SNAFU. SNAFU is actually an acronym for Situation Normal All F**ked Up.

It seems to me that if you presented your written agreement from Attorney A to Attorney B, that should go a long way to take care of the situation.

One possible explanation is that the original creditor had placed the account with Attorney A and around the same time you reached an agreement with Attorney A, the original creditor pulled the account back and sent it to a different collection attorney.

The attorney is not going to file a settlement agreement with the court.

Just to be sure this is what happened I’d suggest you call the original creditor and confirm the situation with them. Most importantly what I need for you to verify with them is that the written agreement you have with Attorney A is recorded with the creditor and they have accepted that repayment arrangement.

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

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Steve Rhode

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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