My question involves collection proceedings in the State of: California.
We had an account go into collection when we were out of the country and were not aware of the payment delay. In 3 years, the original charge of 400+ has grown into 1100+. We recently moved back to US after 5 years and a collection agency is trying to get us pay the money. Initially, they wanted us to pay over the phone through a credit card. We refused and sent them a settlement offer with option of repaying the amount if they agree to close the account as fully paid. We were willing to pay the full amount as well. However, it has been 3 months and we have not heard from the collection agency.
We are not sure what we need to do now. We were hoping to close this delinquent account and clear up this bad credit history. If the collection agency does not respond to the settlement offer, then what are our options now? Are they not obligated to respond to our letter?