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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.

Other Maine Collections-Creditors Rights FAQs

Q: Can A Debt Be Enforced If The Statute Of Limitations Runs Out?
A: If the statute of limitations has expired that means that the debt cannot be enforced by lawsuit, that does not dismiss the debt and the creditor can still leave it … More
Q: Can unsecured debts be settled?
A: An unsecured debt is a debt where there is no collateral. Unsecured debts include medical bills, credit cards, department store cards, personal loans, collection … More
Q: What Is A Secured Collateralized Debt?
A: Secured, collateralized debts are a home or automobile.
Q: Does The Debtor Have To Have A Good Reason To Want To Settle?
A: If the account is paid current and there is no recent history of late payment, it will be difficult to convince the creditor that it is in their best interest to settle.

Collections-Creditors Rights Sub-categories

Chex Systems
Collections
Creditor Remedies in Bankruptcy
Debt Collections
Enforcement of Judgments
Fair Credit Reporting Act
Fair Debt Collection Practices Act

Identity Theft
Judicial Remedies
Mortgage Foreclosure
Non-Judicial Remedies
Secured Transactions
Types of Creditors