Q: Concerned over wording of Debt Settlement Agreement.
I offered a one-time lump sum payment to settle a debt with a third-party debt purchaser and received a settlement agreement that is worded like the following:
"This letter agreement shall confirm that Defendant "Name", has agreed to pay and Plaintiff "Name" has agreed to accept the total sum of $###.## as full and final settlement of the above referenced account."
"Defendant agrees to pay the total amount of $###.## via an initial down payment of 'same amount' due by January ##, 2020 as full and final settlement of the referenced account."
I am concerned about the wording 'via an initial down payment' instead of stating a 'via a lump sum payment'. I mentioned it to the attorney representing the collector and his response was, "The wording still says you are making a single payment that is full and final. There is no other interpretation. Even if it says down payment, it is only one payment."
Should I be concerned or is the agreement acceptable as is?
A: I am always concerned when an agreement is not clear in its wording. You might ask that the wording be changed to allow you to feel more comfortable before signing. I would suggest that you allow an attorney to review the letter for you as they may be able to determine more from actually seeing the letter. You may be able to find one to look at it for a reasonable amount or even for free if that is all they are doing for you.
The information given is for educational purposes only and does not create an attorney/client relationship.
Tim Akpinar agrees with this answer
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