Pending Litigation Over a Settled Debt

urza513 · #1 06-11-2009, 03:18 PM

My question involves collection proceedings in the State of: Colorado

I had an outstanding debt that I was served papers on. I then went to a collections agency and settled the debt for an amount they were offering. I've contacted the lawyer who filed the suit and he said that even though I settled the debt with an authorized agent, I am still responsible for his fees. Is this really the case?

It seems to me that if he was told he has sole authority to settle the debt, then it falls to his client to revoke authorization from all previously authorized agents. If they were given authorization to settle and did, then the lawyer is obligated to drop the case and settle his fees with the client. Is this correct?

Thanks in advance!

divemedic · #2 06-11-2009, 03:37 PM

1 If you got the settlement in writing, then you are not liable for his fees. He needs to take that up with his client.

2 It is illegal under the FDCPA for a collector to charge any fees in connection with the collection of a debt, unless specifically allowed by law, or specified in the original contract with the creditor.

urza513 · #3 06-11-2009, 03:42 PM

Thank you for your quick reply, I really appreciate it.

The only other question I have, will the timing of it make any difference? Because I settled the debt after the papers were served to me, is there any legal recourse that the lawyer would have?

divemedic · #4 06-11-2009, 04:38 PM

The attorney's contract was with his client, not you.

jk · #5 06-11-2009, 04:48 PM

Quoting divemedic

The attorney's contract was with his client, not you.

yes but...

depending on what this was, debtors liability for legal fees could have been included in the underlying contract should collections be neccessary.

divemedic · #6 06-11-2009, 05:42 PM

duplicate post

Quote:

yes but...

depending on what this was, debtors liability for legal fees could have been included in the underlying contract should collections be neccessary.

That contract was settled. He has it in writing.

jk · #7 06-11-2009, 06:56 PM

Quoting divemedic

duplicate post

That contract was settled. He has it in writing.

OP never stated he had diddly in writing. If he does, I'll change my point but until then, I suspect OP received summons for the debt plus legal fees. He ran to the creditor and gave them the debt minus legal fees and felt he paid the debt.

Obviously a collector would be foolish to not accept payment of the underlying debt so he does.

So, does the OP have a statement with "PAID IN FULL" on it?

Notice how the OP keeps mentioning "settled"? I think there is more than OP is telling us.

Not saying you are wrong or I am right but the OP has not provided enough info to make that call.

urza513 · #8 06-11-2009, 07:56 PM

I did receive a letter from the collection agency stating that the debt had been "paid in full" and forwarded it on to the lawyer in question. With this documentation I gather that the original contract is now settled and no further actions are allowed?

jk · #9 06-11-2009, 08:03 PM

with that, I would say yes.

divemedic · #10 06-11-2009, 08:04 PM

Send the lawyer a copy of the letter, and add a letter of your own telling him to cease contact with you.