The only time we have seen the settled balance been reassigned or sold to another collection agency is when the collection agency or creditor misapplies the settlement as a partial payment only.

It's usually just an honest mistake on the part of their accounting department.

That’s the main reason why its important to make sure the settlement is binding on both parties so if something like this does happen, it can easily be corrected.

I can't count the number of times people have tried to settle on their own and been burned because their paperwork isn't in order and another collection agency bangs on their door looking for more money. Sometimes this has happened a few months later, other times it can happen a couple of years down the road.

Total Debt Freedom ensures this sort of thing is not an issue for our clients; if you are settling your own debt, be sure you know what you are doing to avoid this potential problem.

Yeah, news to me too. I'll just consider it fiction until there is some type of proof of this.

Agencies buy old written off debt, that's a pretty standard practice. But buying settled debt? sounds kind of unlikely.

"There is a group of companies that buy settlement paper. they try and collect on it. they consider anything they collect as bonus. they buy it for about a .01$ on a thousand. all they collect is gravey. they are slimey. "

Which group of companies are you referring to? This is news to me.

A settlement is binding on both parties if its done correctly.

Owing collector,

This is why I only offer collection agencies 10%, if I am going to give more I rather give it too the creditor.

There is a group of companies that buy settlement paper. they try and collect on it. they consider anything they collect as bonus. they buy it for about a .01$ on a thousand. all they collect is gravey. they are slimey.

Very common.

"Send us half the balance and we won't bother you again." Then basically the collection agency puts the payment on the debt and pretends they can't contact you anymore and ships the account back to the creditor with notes that say a payment was made and then the person disappeared.

Then the creditor sends it to a different agency (since the first one couldn't collect it, try another!) and the process starts all over again.

If you made a settlement with the creditor and you have the release letter to prove it, they can not send the remainder to a collection agency. Do you have the settlement agreement before you handed over your money and the release letter after the settlement payment was made? If you have none of these, then you are probably on the hook for the remainder of your debt.

- If i have made a settlement with a creditor and paid the amount agreed upon, could the outstanding portion be sold to another company?

- I got a message the other day from "the legal department of blah blah blah" and when I googled the number left it was Contact Resource Canada Inc. The message said they have been trying to reach me for 917 day and they are going forward with legal proceedings, does this sound right?

Answers to any of these questions would be appreciated.