Can A Settlement Be Negotiated With A Creditor For Less Than Owed?

Some collection agencies will agree to settle for far less than owed and then turn around and hire another collection agency to collect the difference. However, in Maine this is illegal. Once a creditor deposits or cashes a full payment check, even if she strikes out the words payment in full or writes, "I don't agree" on the check, she can't come after the balance.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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