Hi everyone. My partner and I put a TON of time and effort cleaning up our credit. We recently purchased a home. When we first pre-qualified for our mortgage, our mortgage guy told us to pay off the last couple of collections we had. We did as we were advised. One of my creditors offered me a VERY generous settlement offer, I took it, I have a copy of the letter stating the account is "PAID" with a zero balance. I forwared it to the mortgage guy and a couple weeks later, bam! We had our mortgage. TONIGHT, I get a call from a collection agencey trying to collect the DIFFERENCE of the settlement! I live in the state of Michigan. is this legal??
Did you settle with the original creditor, or a collection agency? Is this a different collection agency?
I settled with the original creditor and did some research of my own. It is ILLEGAL to for a creditor to have a collection agency collect the difference on a settlement. I called the original creditor today, and got that taken care of. Thanks anyway!
