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When a lawsuit reaches a settlement with prejudice it means that the case is won. A person may still have to pay money or relinquish claims to a debt collector.

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11y ago

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What happens when a collection agency does not honor a settlement agreement?

If this occurs, then they may have violated the Fair Debt Collection Practices Act, or they may have generally breached a contract with you. If the violate the Fair Debt act, then you have a lawsuit against them.


Can a collection agency remove a collection from your credit report?

Yes, a collection agency can remove a collection from your credit report if they agree to delete it as part of a settlement or negotiation.


What is the use of a collection agency debt settlement?

A collection agency debt settlement means when someone is in debt and a company offers a settlement amount to the creditors owed. Payment arrangements are discussed and made, sometimes the amount is way less than the actual bill.


Can a collection agency send your account to an attorney for a lawsuit if it is has been delinquent for less than six months?

Yes.


My account balance with American express has been turned over to a collection agency. Does American express over a reduced payoff as a settlement?

when a company "sells" a bad debt to a collection agency it is at a fraction of the total bill due. So, if you have a bad debt to American express in the amount of $10,000, more than likely it was sold to the collection agency for 2-3000. The remainder can be written off by American Express on the taxes that are filed by the company. What you can do is contact the collection agency after saving 40% of the debt (or 4000) and offer to negotiate a settlement. If you settle for $4000.00 you are saving $6000 and the collection agency is making 50-100% profit on the bad debt. This what the debt settlement companies do - no sense in paying the settlement company fees when we can negotiate ourselves.


If you don't receive a summons or any documentation regarding a pending lawsuit by a collection agency how do you know if it's really true?

If you are being sued, you will always receive a summons. Sometimes it is delivered by a process server sometimes by registered mail. A collection agency telling you, you are being sued, does not necessarily make it fact. Only attorneys can file suit and they have to adhere to the state laws where the person resides. A collection agency cannot sue you regardless of what they claim. Sorry, I should add you need to be aware of the difference in collection agency and collection attorney. For instance Mann-Bracken LLC, are collection attorneys and/or arbitrators. They can initiate a lawsuit.


Can a collection agency sue for under 300 dollars in Tennessee?

Yes, there is no minimum or maximum amount of debt required for a lawsuit to be pursued.


Can a collection agency file a judgment on you for credit card debt in Texas?

No. A collection agency has no legal authority. They can refer the account to a collections attorney who can then file a lawsuit for the debt owed. Yes! A collection agency has the right to file a lawsuit as the assigned creditor under the agreement that you signed when applying for the credit card.


How do you pay a collection account?

Have the collection agency send a written agreement accepting the settlement or payment amount agreed upon BEFORE rendering any payment(s).


What is collection agency?

A Commercial Collection Agency is and agency that collects debt on behalf of their clients, same as a consumer collection agency, but a commercial collection agency collects business to business.


Can a collection agency sue you in court?

A collection agency cannot file a lawsuit against a debtor. The agency can refer the account to a collections attorney who is licensed to practice in the state where the debtor resides, and that attorney can file a suit against the debtor. Some collection attorneys or firms are also licensed to arbitrate accounts, which means the account is sent to the National Arbitration Board rather than the use of standard civil lawsuit procedures. Actually - a collection agency CAN sue you in court, IF the collection agency owns the account. However, you are correct, they cannot file a lawsuit against a debtor IF they are acting on behalf of the original debt owner, i.e., Sears, JC Pennys, etc. Most collection agencies, who actually OWN the debt account, purchase these things at very small costs ... as the original folks have written it off their books. Therefore, if they do take you to court, most likely, it will be small claims court... Debt collection, inlight of credit cards, etc., is actually a CIVIL matter and NOT a criminal matter.


How do you satisfy an unsatisfied judgment after another collection agency bought the account from the first collection agency that originated the judgment?

you "satisfy" a judgment by paying balance in full or settlement. but understand that once a judgment has been issued by a court then there can be no one else that does this.