Results 1 to 10 of 11

Hybrid View

  1. #1
    Join Date
    Mar 2011
    Posts
    6

    Default Debt Paid but Not Settled

    My question involves collection proceedings in the State of: California
    Briefly:

    1. Short sold house with Wamu in 2009
    2. Settled second mortgage for $3600
    3. Per instructions paid $1000 in escrow, $1600 in escrow (seperately) and $1000 check by phone. Have cashed copies of all
    4. Account gets listed as paid less than owed and i dont hear about it until 3 weeks ago.
    5. Chase (bought wamu) is requesting the full amount of the second mortgage
    6. Told them to take a hike, i paid it.
    7. New collections hits credit, i become unhappy


    So the bottom line is i paid this debt but thru all the buying and selling of banks they think i still owe the money. i never got a settlement letter from the original debt settlement because wamu never paid the collections agency. none of this is my problem but its up to me to fix it. what now?

  2. #2
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Debt Paid but Not Settled

    2. Settled second mortgage for $3600
    3. Per instructions
    You have proof of the settlement offer?

    You do say you have proof of fulfilling the financial end of it. Send whomever is dunning you copies of the agreement and proof of payment.

    Also, contact the credit reporting agencies and dispute the inaccurate reporting. btw; just in case you didn't know; if they settled for less than payment in full, that is what your credit report will reflect.

  3. #3
    Join Date
    Mar 2011
    Posts
    6

    Default Re: Debt Paid but Not Settled

    I have the settlement offer letter and copies of cashed checks totalling the settlement amount of $3600

    The origional collections agency claims they never recevied payment from wamu and as such will not give me a letter stating the debt is settled.

    The new collections agency says without a settlement letter my previous deal is invalid, they placed the new collections. Whats weird is they show the total amount due and no matter how you cut it $2600 was paid directly to wamu thru escrow so even if they wanted the full amount it should be $2600 less. Its proof their numbers are inaccurate.

    When the new collections agency contacted me i provided them with the settlement offer and cashed checks. i sent them a letter via email stating that the account should have been closed and they still didnt verify the debt.

    This has negatively affected my credit just when i was about to purchase a new vehicle and i no longer qualify.

  4. #4

    Default Re: Debt Paid but Not Settled

    If Wamu sold the debt to the collection agency and wrote it off, then you no longer owed Wamu and they should not have accepted payment (pretty sure that's fraud).
    If they merely employed the collection agency to collect it on their behalf, then Wamu would need to tell the collection agency the debt has been settled.

    You need to send those documents in writing, not email. I think about 90% of company emails goes right into the ether, I can't count the number of places I've emailed (to spend money with!) that never reply.

  5. #5
    Join Date
    Mar 2011
    Posts
    6

    Default Re: Debt Paid but Not Settled

    So obviously this is an uphill battle which me, as a consumer, is pretty much helpless. Can i sue these people or something? I attempted to find a lawyer in my area but they all wanted to run me thru bankruptcy which i dont need

  6. #6
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Debt Paid but Not Settled

    Quote Quoting mittens
    View Post
    If Wamu sold the debt to the collection agency and wrote it off, then you no longer owed Wamu and they should not have accepted payment (pretty sure that's fraud).
    If they merely employed the collection agency to collect it on their behalf, then Wamu would need to tell the collection agency the debt has been settled.
    y.
    exactly.

    there is huge misunderstanding when it comes to debt, original creditors, collection agencies, and debt buyers. It is difficult to determine whether a debt is being collected by a collection agency where the original creditor still owes the debt or where the debt has been sold and you are being contacted by a debt buyer.

    You need to figure out which situation it was. If the debt was still owned by WAMU, you should be able to straighten this out. If WAMU had sold the debt, sorry to say but you are still on the hook for the full amount as WAMU had no authority to accept anything to settle the debt as it was no longer theirs to collect.

  7. #7
    Join Date
    Mar 2011
    Posts
    6

    Default Re: Debt Paid but Not Settled

    I just confirmed that the original debt collector was acting on behalf of wamu, and they claim to have never received compensation from their client so they never marked the account as settled.

    1. Sponsored Links
       

Similar Threads

  1. Credit Reports: How a Settled Debt Should Appear on a Credit Report
    By 99monguse in forum Personal Finance And Investment Law
    Replies: 1
    Last Post: 01-27-2010, 03:51 PM
  2. Judgment Settled and Paid, but Now in Collections
    By thenewbeetrader in forum Civil Procedure
    Replies: 2
    Last Post: 11-03-2009, 09:43 PM
  3. Debt Collectors: Proof of Settled Debt
    By taz in forum Debts and Collections
    Replies: 3
    Last Post: 06-30-2009, 07:26 PM
  4. Debt Collectors: Can a Settled Debt Be Fought After the Fact?
    By 22togro88 in forum Debts and Collections
    Replies: 1
    Last Post: 08-08-2008, 02:55 PM
  5. Debt Collectors: Florida Debt That Was Settled Comes Back Again
    By Davesbroke in forum Debts and Collections
    Replies: 7
    Last Post: 10-17-2007, 09:58 AM
 
 
Sponsored Links

Legal Help, Information and Resources