What recourse do I have to recover a double payment on a defaulted debt?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What recourse do I have to recover a double payment on a defaulted debt?
I had a past due balance of $1300 on a credit card. I settled the balance with a collection agency for a one time payment of $933 and made the payment in full. One year later, a law firm acting on behalf of the creditor garnished my bank account for the same debt for $1300 plus some interest. What do I need to do to recover either of the payments?
Asked on June 15, 2011 under Bankruptcy Law, Ohio
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
You need to sue--or rather, you may need to sue, if after proving proof that that the debt had already been paid and demanding repayment, they do not voluntarily return the money. Send the law firm evidence that the debt had already been paid (e.g. the agreement to settle for less than full; and proof of the payment). Since you don't have to pay the same debt twice, the law firm (and it's client, the card issuer) should return the money to you; if they refuse to, you may need to sue them to make them honor their obligation.
One possible wrinkle: if the collection agency was not actually working on behalf of the card company or did not remit the money they collectred from you to the card company, it's possible you may need to pay the credit card issuer (since they did not previously get their money) and sue the collection agency for fraud.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.