[bombay24]

My question involves collection proceedings in the State of: MO

I have been negotiating a settlement with an OC since being served. The trial date is about a week and a half away, and we agreed to terms on a settlement earlier this week.

I sent them an offer which was a lump sum payment in return for full settlement of the debt, dismissal of the case with prejudice, and a release signed by their client. I asked that they sign and return my letter if they agreed to its terms. Instead, I got a call from them the following day saying that they would agree to my terms, but I would have to have the money in their hands and file a dismissal of my counterclaim before they would file a dismissal of the case. They then sent me their own letter which outlined everything in my original terms other than a release from their client. Their letter was also not signed by the attorney, however it did have their letterhead and all of the case/account info. It also asked that I send the money to the law firm, not the OC. However, I am pretty certain the OC still owns the debt as I contacted them and asked about it as well as one of the attorney's responses stated it was the OC.

My questions:
Should i insist that a release by their client be included?

Is their unsigned settlement letter appropriate?

Should i pay them and dismiss my counterclaim prior to them dismissing? Is this the typical process?

With the court date so close, should I file for a continuance just in case?


Thank you in advance for your help. I just want to make sure i do these final stages properly so that this is closed and I don't EVER have to deal with it again. This has been a huge headache and I really appreciate all of the help I have gotten!

[divemedic]

That is good, but I would shoot for a non-disclosure clause. Something like "both parties agree not to disclose any information regarding the account to any outside party." That will prevent them from reporting it to your credit.

As long as you get the dismissal with prejudice, you are good. Signature is not required. File your dismissal, you have proof the settlement has been reached. If they breach, the judge will not be happy.

[bombay24]

That is good, but I would shoot for a non-disclosure clause. Something like "both parties agree not to disclose any information regarding the account to any outside party." That will prevent them from reporting it to your credit.

As long as you get the dismissal with prejudice, you are good. Signature is not required. File your dismissal, you have proof the settlement has been reached. If they breach, the judge will not be happy.

It's already hammering my credit report. If I do not put it in, I would assume it will be reported as "settled in full" since it is clearly stated in the settlement agreement that it is for full settlement? If I put the nondisclosure in, how would it be reported and furthermore, what documentation would i have to back this up in case they don't report properly since the agreement would have the nondisclosure?

Thank you very much for your response!!