topic Re: Accepted a settlement, paid, then they rescinded the settlement in General Credit Topics

Accepted a settlement, paid, then they rescinded the settlement

Anonymous — Mon, 17 Jun 2019 20:13:19 GMT

A doctor's office offered a settlement for 25% off of a medical bill. I accepted, and was promised that it would be removed from collections, without damaging my credit, because it had just been sent to collections that day and there's a grace period.

Today I received notice that my account has been in collections for almost a month. I called the doctor's office, and they said "actually the representative was mistaken, and she was not allowed to offer a settlement, so you still owe the remainder."

I received no bills, and my billing account online says I owe $0. Meanwhile it's still in collections and damaging my credit.

Once a settlement is offered, can they just take it away?

Re: Accepted a settlement, paid, then they rescinded the settlement

CreditInspired — Mon, 17 Jun 2019 20:20:57 GMT

The question is -- was it in writing? If no, I think it comes down to your word against their's in the end. So sorry that this has happened. If yes, then they must abide by their written agreement.

Re: Accepted a settlement, paid, then they rescinded the settlement

LakeLife — Mon, 17 Jun 2019 20:22:11 GMT

I have read it a thousand times to get it any offers writing, and I've never had to research the topic. That's how widely the information has been distributed. I'm afraid without something in writing you are at their mercy.

Re: Accepted a settlement, paid, then they rescinded the settlement

Anonymous — Mon, 17 Jun 2019 20:26:25 GMT

I have recorded phone calls where they admit to offering a settlement, but it was "against the rules" so they are taking it back. They say the clerk who offered the settlement didn't have the authority to do so.

Re: Accepted a settlement, paid, then they rescinded the settlement

CreditInspired — Mon, 17 Jun 2019 20:50:44 GMT

A recorded phone call. Hmmmm. Did the other party agree to being recorded or was it in secrecy. That may present a problem.

Re: Accepted a settlement, paid, then they rescinded the settlement

Anonymous — Mon, 17 Jun 2019 20:52:50 GMT

Both parties are in a one-party recording state, so it's perfectly legal, although I did notify them for some of the calls, just to be polite.

I have proof that they offered a settlement. But what can I even do with that proof? Also, what can I do to get this out of collections?

Re: Accepted a settlement, paid, then they rescinded the settlement

CreditInspired — Mon, 17 Jun 2019 20:57:04 GMT

@Anonymous wrote:
Both parties are in a one-party recording state, so it's perfectly legal, although I did notify them for some of the calls, just to be polite.

I have proof that they offered a settlement. But what can I even do with that proof? Also, what can I do to get this out of collections?

Ask if they would do a PFD if you paid the entire amount? Of course, get it in writing, if they say yes, and prior to paying?

Re: Accepted a settlement, paid, then they rescinded the settlement

RobertEG — Mon, 17 Jun 2019 21:28:25 GMT

Oral contracts are binding/enforceable, but usually much harder to prove in court.

If you have some documentation establishing the offer, then you would have an enforceable oral contract.

Their agreement remains only that until you have actually paid under the agreed terms.

Once you pay, the offer becomes a legal contract, and if they accept payment, you could sue for breach of contract.

DId they actually establish the contract by their acceptance and deposit of your payment? If so, I would consult an attorney regarding a breach of contract action.

AS an aside, under new CRA policy, the CRAs have agreed not to include medical collections in your credit report until at least 180 days after date of first delinquency. What is the DOFD?