Q: Some time ago, I agreed to settle a credit-card debt for less than what I owed and paid that amount in full. Now, several years later, another company said it purchased the unpaid amount from the bank and wants it with interest, $16,000 total. What can I do? — C. Garcia, Denver
A: There are several things in play here that consumers such as you need to know.
The first key element is whether you have the settlement from the credit-card issuer in writing back when your debt was negotiated.
It’s critical to have had something that shows your charge-off was a settlement in full. Without that, it might be difficult, though not impossible, to set aside the remainder.
Any form of paperwork — canceled checks, correspondence, etc. — with the credit-card issuer should help, so dig around in your records.
Failing that, contact the issuer and ask for an account history for the last few months of your account until its final entry. Do this in writing.
Banks frequently sell off bad or charged-off debts to collection agencies or debt buyers for pennies on the dollar.
The folks at the Colorado attorney general’s office note that debt buyers are subject to federal and state statutes governing debt collection. You can simply refuse to pay the debt and advise these collectors to stop contacting you. Do it in writing. By law they’re required to cease all communication unless it’s to file a lawsuit.
Or you can write the collector and dispute the debt. In that case, they must provide proof that it is a legitimate and collectable debt.
If the collector attempts to contact you after you’ve refused to pay or before providing proof of the debt, that violates the law, and you should file a complaint with the attorney general. See .
Also consider a complaint with the federal Comptroller of the Currency, the regulator of many large banks that issue credit cards, over the selling of a debt that was settled. Visit .
Don’t be bullied.
