Settlement scam?

[Anonymous]

I called diversified adjustments for a Verizon wireless account. We agreed to a settlement, but they said they couldnt email me a settlement offer. Once I paid they could zero the account out and then send me a settled in full letter and/or a receipt. I do live in the state of NY which is very strict. My fear is that once I give them my information they will not honor the settlement and will charge the full amount or just apply it to the total balance. Their defense was that it is illegal and that they record the phone calls. What should I do? I also called enhanced recovery co regarding a sprint account I had. they said similar things, except they could mail me an offer, but the settlement is only good until December 11. And if I do not receive it by the 11th then the settlement offer wouldn't be on the table anymore.

[Anonymous]

Sounds like scare tactics to me.

[Anonymous]

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@Anonymous wrote:
I called diversified adjustments for a Verizon wireless account. We agreed to a settlement, but they said they couldnt email me a settlement offer. Once I paid they could zero the account out and then send me a settled in full letter and/or a receipt. I do live in the state of NY which is very strict. My fear is that once I give them my information they will not honor the settlement and will charge the full amount or just apply it to the total balance. Their defense was that it is illegal and that they record the phone calls. What should I do? I also called enhanced recovery co regarding a sprint account I had. they said similar things, except they could mail me an offer, but the settlement is only good until December 11. And if I do not receive it by the 11th then the settlement offer wouldn't be on the table anymore.

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How old is the account? How long has it been with Diversified?

[RobertEG]

NYS enacted new regulations effective this year that apply to numerous debt collection practices, including substantiation of debts, time-barred debts, and settlement agreements.  Your situation is covered under the new regs.  They are requried to provide written confirmation of any settlement agreement.

The new regulation requires that within five business days of agreeing to a debt payment schedule, or other agreement to settle a debt, the debt collector must provide the consumer with a written confirmation of the debt payment schedule or other agreement to settle the debt, and a notice of certain sources of income that are immune from garnishment under federal and state laws, e.g., Social Security payments, public assistance, spousal and child support, disability and workers' compensation benefits, among others.  23 NYCRR § 1.5.

[Anonymous]

It has been with diversified for about 6 months. And the accounts are about 2 years old

[Anonymous]

I would let it sit for a few more months and see if you get a notice from a new collector on it. The communications companies, for some reason do not like to sell their delinquent accounts and will cycle them from one assigned collector to another about every 6 months or so. If you happen to get a notice from a new collector, they will almost always give a 30 day "grace period" where if you pay it, it won't get reported. If the old collectors report is still there you can dispute it as "collector does not have collection authority".