Is it legal to settle your credit card debt, and then the creditor sell the remaining balance to another Co?

I was on the verge of Bankruptcy a couple years ago and my parents generously offered to allow me to move back home for a year to get my credit squared away.





In that year, I managed to settle my debt with almost all my creditors for about 1/2 to 2/3rds of the orginal debt. For example, my debt with one credit card was about $1,800 and I settled for $1,000 and paid it off.





A year or so later, I'm starting to receive letters from different creditors stating that I owed now $800.00 to them as they've bought the balance of my debt from the last collection agency.





Is this legal? Why should I bother settling if they can turn right around and make the pay the full balance anyway? I live in the State of Oklahoma if that matters.

Is it legal to settle your credit card debt, and then the creditor sell the remaining balance to another Co?
Do NOT pay them anything and tell them that you've settled the original debt with the original company. If they insist that you owe the money tell them that you have the documentation to show that the debt was settled, and if they report you to the credit companies, that you'll file a wrongful debt suit against them. Play hardball and you'll win, but under no circumstances pay them a penny. If you do, it's like an admission of the debt.
Reply:Settlement of a debt means that you and the company you owed the money to have voided the previous contract and entered into a new one, which you have satisfied all the terms of. There's nothing left for them to sell to anyone. DO NOT PAY a penny. Report Abuse

Reply:If i knock on your door and say I'm here to collect your debit to visa ,Would you just hand over the money, of course not. A sold debt cannot be collected because they are not the original lender tell them to bug off.Only the original lender can sue you and since they sold the debt no one else can sue you no matter what they say.
Reply:in my opinion, i think you should pay, if you don't agree , speak


with a lawyer.
Reply:If you settled the debt, did you do so in writing? To settle any debt, it's best to get it in writing (contractual agreement between both you and the creditor). If you don't have the settlement stated in writing and signed (agreed to) by both parties, then they can indeed pursue the debt.
Reply:This is a very tricky situation. They CAN write off the $800 as bad debt (charge off), and possibly even sell it to another creditor. The key is how you made the agreement with them for the settlement. Did you get the settlement offer in writing and did it specifically say that this would be considered a 'paid-in-full' debt? If so, then you have grounds to sue them and I would consult a lawyer.





If you have a letter but it doesn't say they will consider it paid in full, then you MAY have grounds to sue, but it's up in the air as to if you'll win. What I would do is write the new creditor disputing the debt and show them what you got from the original creditor about the settlement.





If you do NOT have it in writting, then you are out of luck and need to work something out with the new creditor. Make sure you ALWAYS get it in writing when settling. Remember too, they can still report a settlement as a charge-off or as 'settled for less than balance' on your credit reports.
Reply:Credit card companies can legally sell their receivables (money owed to them) to other companies. They usually sell it at a discount and the purchaser tries to collect the whole amount. For example, your credit card company may have sold your $800 debt to the collection company for $400; the collection company makes a profit by collecting the whole thing.





So... how does this affect you? If you have a written statement from your credit card company that the debt was satisfied in full by the amount you paid -- in other words, they took what you owed and wrote the rest off -- you should be able to provide that to the collection agency and get off the hook for the $800. If you don't have such a statement, you're probably stuck.
Reply:do not pay them