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I paid a Collection debt with settlement. Is my problem gone?

In March/2008 I paid 60% of the huge amount that AT&T was charging by a Collection agency. I did a set up settlement with the agengy. Today 10/09 I saw in my credit report that AT&T put the rest of the amount in my credit report thru different Colletion agency without contact me. I called At&T and they said I own them this money. But when I paid the settlement the Colletion said I was done with this debt and they sent a letter saying that. I'm very upset with AT&T for messing up my credit again. They are asking me to send a bunch of papaer to prove the settlement. I'm affrad this problem never stop. I want to sue AT&T since my bill was $700 and I paid the settlement $2000 (after 2 years negociating with them) of the $3500 that they were charging... What do I do?

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Attorney answers (2)

Avvo Pro

Reputation Level 13
While I have no advice for you as you have trusted a thief and got burned, your situation is a good example for others of what not to do. NEVER pay a debt collector! There may be honest debt collectors somewhere, I have never encountered one in my law practice. Perhaps they are like Unicorns? Debt collectors are trained to be razor-sharp thieves who will try to convenience you that you should use your rent money to pay them on an old bill. Debt collectors will break every deal they make with you if it will mean more commission for them. NEVER pay a debt collector!
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Reputation Level 20
If you have a settlement agreement releasing you, you should provide it to them. If all you have is the collection agencies letter, show it to them. You need to prove your case that you intended to pay off this debt in full and that the collection agency agreed to this. Did you write "endorsement represents full and final settlement of all claims" on the back of the check?

Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.

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