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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I am interested in paying off a few debts on my credit report.

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I am interested in paying off a few debts on my credit report. One in particular has a balance and the collection agency (which has verified they have purchased the debt from the credit card company) has offered me a settlement on the balance to which they wrote a letter stating to me that if I pay the settlement amount, they will update all three credit bureaus as "paid in full" with no obligation to the rest of the balance. They also want me to send a money gram. Is that safe? It is better to get a money order or cashiers check and send the payment via certified or registered mail? What steps do I need to take to make ensure that they do not come after me for the remaining balance, as well as ensure the update to the credit bureaus?

WebLaw :

*Due to rules of your state bar or mine, nothing herein is intended as legal advice, only intended as general information to better help yourself.*

Customer:

ok

WebLaw :

It appears that you have done your homework well. Since you have verified the debt, verified that the collection agency now owns the debt and you have a written offer of settlement that includes an update for the credit reporting agencies, it appears safe for you to send the money gram. Absent the above verifications in writing, you would not want to send any money.

WebLaw :


Please use the REPLY button if you have any questions concerning my answer. Otherwise please click ACCEPT so that I am paid by the site for answering.

Customer:

Do I need to sign the document as well for it to be official?

WebLaw :

No-- it is only necessary that it be signed by the collection agency to enforce the agreement against the collection agency

Customer:

Ok thank you. I just wanted to be sure. I don't want to send a money gram and they say they never received it or I sent it to the wrong person.

WebLaw :

I agree -- that is why the verification is so important

Customer:

Thanks for your help.

Ellen and 2 other Bankruptcy Law Specialists are ready to help you

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