A law firm is trying to collect on my debt, and we have mutually agreed to a settlement. I had prepared a written agreement with all the details that had been agreed upon, like the total due amount, the amount I’ll be paying, the due date etc. The agreement also states that once the final settled amount is paid, the account will be closed and there’ll be no further legal action for the same. I sent them that, but they refused to sign it. I tried calling the creditor, and he say’s he can’t help. Now, I am at a loss about what to do! I shouldn’t pay without an assurance from their side, right?

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Don’t pay them till you have the signed agreement in your hand, and you’re sure that you will be paying the actual owner of the debt.

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Verbal agreements won’t count, and you’re right in asking for the settlement in writing. However, most debt collectors want the settlement agreement to be prepared by them and refuse to sign the one sent by the debtor. Are there any other extra clauses that you’ve included in the settlement agreement? Enquire about the reason for which they’re not signing and ask them to provide with a settlement statement if they’re not satisfied with your terms.


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