COLLECTION QUESTION: SEARS CHARGE PLUS

[tryin_to_make_it]

I opened up a Sear Charge Plus credit card account in April 2006.  It went into chargeoff around this time last year (Sept - Oct 2007).  It first went to NCO Financial for the original balance of $2933.  I think I recieved one phone call from them, but I made no payments to them. i guess they sold my account to National Enterprise Systems (NES).  In fear of accruing more charges or eventually being sued, I agreed to settle for half the balance with NES.

Question 1: Should i have DV'ed eventhough I knew the debt was mine before agreeing to their settlement? 

Moving along...the settlement was set at $1467 which would be paid in four installments drafted from my checking account over the course of 60 days. Stupid me... they never sent in writting what we agreed to on the phone?  

Question 2: For future reference, if this happens again should i stop any draft payments if they don't send anything in writting?  

NES actually drafted three of the four payments.  NES did not draft the last one.  i called to see what the problem was only to find out that NES had sold my account, breaking our settlement agreement.

Question 3: Can they do this  IS THIS LEGAL or did I screw myself by allowing them to draft the first 3 payments without first getting a written agreement from them?

My guess is they sold because they made their money back from the first three payments and didn't want to fool with me anymore. But anyway they sold my account to LTD Financial Services, which is who its with now, for the original balance of $2933 minus the three payments i made to NES leaving a balance of $1860 with LTD.  Again knowing the debt was mine i didn't bother to DV LTD. I started making payments with them and now my balance is $1400.  They are offering a settlement for $980. 

Question 4: Have I completely screwed myself?       

Question 5: is there anyway around this leagally is it too late to DV since i already made payments to LTD?

Question 6: have i lost my bargaining chip for a PFD since i have already made some payments?

SORRY IT'S SO LONG, BUT I NEED ALL THE HELP AND ADVICE I CAN GET!!!!!!    

[llecs]

#1. Yes, always DV before PFDing, settling or paying. To opin, never ever never talk to a CA on the phone. Their word is not their bond. And always get everything in writing. Never make incremental payments to a CA. Never give out your banking info (click here). Never pay with a personal check. And, IMO, never offer a payment without a PFD (unless you are being sued, up against the mortgage process, etc.)

#2. In the future, never talk to the CA. DV them, and if they verify and you agree with it, then offer a PFD and wait for a written acceptance of the PFD. Then make one payment to PIF or settle. If in a situation now, where you are making multiple payments on a sizable debt, I would rapidly save $$$, and offer a PIF via a PFD to get them to delete quicker and pay off the debt sooner.

#3. It is not legal because you had an agreement, but because you cannot prove that, you are out of luck. If you took this to court, you'd have to show the judge a copy of your agreement or a voice recording of the agreement (but be careful, not all states allow you to record calls without consent of the other). See also my answer for #1. Never ever never talk to a CA and never trust a CA.

#5. I'd DV LTD now! I would also DV NES if they are reporting. And even NCO if they are too.

#6. You hurt your chances for a PFD, but not all is lost. BUT DV First!!!!! If LTD comes back with the balance, then offer a PFD based on a settlement or PIF.

[tryin_to_make_it]

Thanks for the advice and quick response.