Q: I have a question about settling a credit card debt.
I have a closed cc with jp Morgan that's over a year old for 5400.00. Today I received a settlement offer from collection agency for $580.00. I know there can be tax implications and it will impact my credit score, but other than that, are there any other negatives for accepting this offer? Can they consider that payment as admitting I owe the debt and retract the offer after I pay it then still come after me for full balance?
Thanks
A:
A settlement offer is that - an offer to settle the account. The offer must be in writing, which I assume it was, judging by your post. If you comply with the offer, they cannot then retract it. You should keep all correspondence, to include your response(s) and a copy of the cancelled check, for at least 4 years. If JP Morgan sends you a 1099 at the end of 2020, then I wouldn't worry about JPM suing you for the balance, but because you are dealing with an agency you can't be too careful.
If the offer to settle was made over the telephone, get it in writing before you pay a dime in settlement. A bona fide collection agency will put it in writing.
Bruce Alexander Minnick agrees with this answer
A: On a positive note--this offer to settle an old debt of $5,400 for only $580 is the best one I have seen yet. So long as you get it in writing you should consider paying it--if for no other reason than peace of mind. Keep in mind that once you agree to pay it, you must pay it; and if you do not, JPMorgan can come back at you for the ENTIRE $5,400.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
