Persels and Associates Closed and I’m Being Chased for a Debt They Settled


Dear Steve,

About 4 yrs ago, my husband and I were completely in credit card debt. We went through Persels and associates. I know what you’re thinking, NO DEBT CONSOLIDATION LOL! Anyway we were well on our way to being debt free.

This past June, we paid off our last creditor. It felt so good! Well, I am now receiving mail and phone calls from ANOTHER debt collector saying that I owe $3000 to one of the creditors I had paid off with Persels.

I talked to them and they said I need to produce a paper saying the amount paid with credit card account number etc. I thought that would be easy but now I can not get in touch with Persels and associates by any means! I need help! I need to know what the next step is! Thanks.


Without the proof and documentation that you made the payment and what the agreement was, I’m afraid you don’t have much to fall back on to show as proof that the account was settled. Persels should have provided you with copies of all the agreements when they settled your debt.

You might want to contact CareOne who worked closely with Persels and see if they have any way to assist you to get the correct documentation. They might at the very least have some idea where the client records are now.

While the debt might have been settled under a written agreement, if the creditor didn’t keep it, didn’t properly notate the account, and sold it on to a third party without the documentation, ouch! You’ve got no proof if you don’t have the documentation.

But it also means the collector might not have the documentation necessary to validate your account either.

If you can’t get anywhere with the documentation, contact a consumer attorney to defend yourself and help you to validate the debt or determine it is now outside the statute of limitations.

See also  CareOne / Persels and Associates - Consumer Complaint - March 7, 2013


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

Damon Day - Pro Debt Coach

Steve Rhode

4 thoughts on “Persels and Associates Closed and I’m Being Chased for a Debt They Settled”

  1. You were sent multiple letters and emails prior to the closure. One of those letters contained instructions on how to access a client portal hosted by National Data Systems the software provider post the conversion off the Care One platform. If you don’t have the instructions, please contact the software company to determine how to gain this access. If the deal was closed prior to the conversion when the records were maintained on the Care One system, they may be able to assist you in locating the settlement letter.

  2. I would contact the “independent contractor” attorney who represented you in your state. His or her name will be on the mail you have been receiving from the firm. The state bar or the internet will have an address and phone number, and they are just as responsible for malpractice or fraud as Persels or CareOne. Contact them and ask for proof of the settlement, by phone and in writing. Asking another attorney to do that might be more effective, but it is not necessary.

    The lawyer will not have the settlement agreement either, but their state bar counsel will probably be interested to learn this, and may be able to help you. There is a fund in almost every state to help people who lose money to bad lawyers, and they might also have malpractice insurance. The settlement agreement may not even exist. Some of these outfits paid creditors without getting a legally enforceable settlement agreement. Some of them just pretended to settle accounts, paid your money to them without any agreement at all, to get the success fees.

    One of the hidden secrets of debt settlement is that affirmative acts to settle a debt acknowledges it, and restarts the statute of limitations in most states. Letters and payments in debt settlement are often sufficient to validate the debt. Thanks to your debt settlement lawyers, you may have lost valid legal defenses on the account.


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