Agreed to Settle a "Debt," but Think I Was Scammed

My question involves collection proceedings in the State of: Connecticut.

Hi all,

I received a phone call from a debt collector yesterday. She said that I had a debt related to an old credit card from almost 15 years ago. I don't have a recollection of having this credit card, but I was 18 at the time and it's possible I might have had it. It was a fairly small amount charged (less than $300), and with fees they were seeking a little over double that. There were some things that didn't add up, like how I wasn't contacted sooner. She said that they had sent letters to the address they had on file, but I had never lived at that address (a family member did, years after the account was supposedly opened).

I started to ask if maybe my identity might have been stolen. The girl on the phone said that the only way to tell was after I was taken to court, and that at that point I would be on the hook for thousands of dollars in court fees, etc. She said if I wasn't sure and I might have opened the credit card account (again, almost 15 years ago), I should not take the chance.

My wife and I are in the process of getting a mortgage, and thinking that this could haunt me, I offered to pay off the debt for a little under half the amount they were asking for, and the woman accepted. I used a debit card from my bank to make the payment (so she took my debit card number, along with expiration and the three digit code on the back). She said that I would receive something in my e-mail to sign and send back.

I never got anything in my e-mail. As I thought about it a bit more, I did a little research and learned that because the debt was so old I shouldn't have paid it (again, I don't even think it was my debt, I honestly have no recollection of opening an account at this store). My wife called a consumer protection number in my state and they said that I shouldn't have paid it and now that I did it can negatively affect my credit, but that they couldn't help me. Now I'm even more scared than before. Again, my wife and I in the process of getting a mortgage.

In hindsight, I should have researched this further before jumping on a payment when they called, but I got scared and made a mistake. Looking at it now, do you see any options I might have? It was a debit card (like a credit card), so I could call my bank and do a chargeback. I never signed anything (because they didn't send it), but I don't know if that matters. And I'm just hosed? Or do I have any options here?

Thanks in advance for any advice you guys might offer.

You are right, you were scammed. Even if the debt was indeed yours, it was almost certainly time barred from collection. Further any derogatory information from your credit report had expired long ago as well.

YOU SHOULD NEVER GIVE OUT DEBIT CARD NUMBERS TO UNKNOWN PEOPLE OVER THE PHONE. IT DOESN"T MATTER WHAT STORY THEY GIVE YOU.

Call your bank immediately and tell them that you did something very stupid in giving out your number to an unidentified party. Not only do you risk whatever amount you THINK you authorized, you could be looking to have your account drained.

The other sad issue that even paying $1 on this debt would make the entire loan collectable again.

For the sake of figuring out what I can do next, let me make a few assumptions:

1) Assume that I did really sign up for this card way back when and the debt really was mine
2) Assume that they are a real firm and are not going going do drain my account (but obviously don't mind being very deceptive).

Can I argue that I was deceived in to paying them what I did, and therefor stop the payment with my bank? If I do that, will it reset me back to before I ever made a payment, or has my account now become actionable again no matter what? Do I have any legal options here at all?

When you know the facts, let us know the facts.

Mr. Knowitall,

Unfortunately I have no way of knowing if the debt really was mine. I called the original store, but they had no info. The original debt collector said he couldn't provide me with any info until it got to court. I think the only option I have is to assume that it is mine.

As to the second assumption, so far they've only debited what I agreed to. If they were being fradulent, it would be a different matter all together, so for the sake of this forum I think these are very safe assumptions (given that either one would really alter the situation).

If you guys could help me out within those assumptions, I'd really appreciate. I guess if you know how I can figure out either one for sure, that would be super helpful as well, but I think I've got all the info I'm going to get with my very limited means.

statute of limitations goes to the first missed payment, having made a payment if you miss a future payment the statute of limitations begins again.

Hi Lehk,

Thanks for your help :)

I guess my question was, can I say that I didn't mean to pay make this payment because it was misrepresented to me? I can challenge it with my bank because it's so new, but I don't know if that will hold up. And if I do challenge it, does that make it so that there never was a payment? Or will the statute of limitations be reset regardless of whether I challenge it?

To be clear, according to what we agreed, the debt is now paid off. I offered to pay $XXX to settle the debt, and they did it. But I think the whole thing was misrepresented (mainly that I don't even think it was my debt, but I had no way of proving it, so I just bit the bullet to avoid having to go to court). My realization after the fact was that even if it was a legit debt (which I have to assume), I was really liable to pay it. Now I'd like to get out of that.

It gets hard once you have sent them money. In sending them money you are saying I agree. In most states you have reaffirmed the debt by sending them money.

the only way to "challenge" it would be to claim it was a fraudulent charge.

you can bet 100% the collector recorded the call and will provide that recording as evidence for trial if you falsely report fraud

Okay, so let's say I just write off the payment as my stupid mistake... at least it was an agreement to settle the debt in full.

The only other problem is that the lady said that I would receive something via e-mail that I would have to sign and fax back within 7 days. I assume this is my agreement to the terms of the settlement. The problem is that I haven't received this in my e-mail. If I don't get it, will they have the right to change what we agreed to on the phone and instead apply my payment as a single payment toward a larger debt, rather than a full payment for what we agreed to settle on?