Can a credit card company sue for a balanceif a verbal agreement was made tthat 90% would satisfy the account?

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Can a credit card company sue for a balanceif a verbal agreement was made tthat 90% would satisfy the account?

My daughter agreed by phone to pay 90% of her credit card balance and the company agreed this would satisfy her account; they would write off the rest. She made that payment over 1 year ago. Now she received a letter threatening litigation for the remaining balance. She has written them several letters stating the agreement and no further payment would be made. The balance is under $500. What should she do?

Asked on September 30, 2010 under Bankruptcy Law, Wisconsin

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 14 years ago | Contributor

IF there was an agreement, it is enforceable. The question is, if there is nothing in writing--e.g. nothing signed by a representative of the credit card company or its collectoins agency--can she prove that the agreement was made? If the evidence of the debt is in writing but there's no evidence of a written agreement to settle the debt, it may be difficult for her to prevail. She needs to look at her income and assets, her credit rating (which could be damaged by this matter, especially if she goes to court and loses), and the value of her time, and decide whether or not she may be better paying the rest, or trying to again settle for a portion of it--though if she does either, she needs to get any agreement and evidence of paying off the debt in writing, to avoid the matter coming up yet again.


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