CA refunded payoff from 2 years ago because OC didn't accept terms

[My_dog_FICO]

Timeline: mid 1999 defaulted on mortgage - no more payments since

Feb 2006 CA (NMRC) contacted and requested settlement. Agreed on $750 for $26k loan. (obviously I didn't know SOL) Received approval for payment and they accepted payment. Did NOT get final letter of settled debt (didn't know back then)

Oct 2006 another CA contacted and requested settlement. I faxed them the letters from Feb and they left me alone.

Sept 2007 another branch of the Oct 2006 CA contacted and requested settlement. Stated and faxed same as Oct 2006 but they wanted final disposition letter. Took 3 weeks, but I got one from NRMC. I faxed to Sept 2007 CA and they're leaving me alone.

Now for the crazy part. Last week I receive a check from NMRC for the $750. After calling them to find out what's up, NRMC states that the rep who made the settlement with me never received OC approval and then he split the company. They never should have taken our money, so they sent it back - almost 2 years later.

Advice? Should I cash the check since if NMRC is telling the truth, the don't have legal right to the $750?
If anyone else asks for payment should I reply they are SoL because the dept is past the FL SOL (5 years) or did my attempt to settle in 2006 reset the SOL start date?
Should I do anything with the OC to ensure the debt is off the books?
Since this debt is NOT on any of the CRA's should I do anything at all if I don't get a court summons?
Or should I just hire an attorney to straighten this all out?

You guys have been great in helping others - I hope you can point me in the right direction. I fully understand your advice is not legally binding, just looking for suggestions from people with knowledge and experience (Tuscan and Dog).

In Recovery - Greg

Message Edited by FAKO_Junkie on 11-08-2007 06:41 PM

Message Edited by FAKO_Junkie on 11-08-2007 06:43 PM

[Anonymous]

What ever you do DON'T deposit the CHECK!!!!

You may want to speak to an attorney. Try naca.net many get a free consultation.

[My_dog_FICO]

Timothy,

Thanks for the advice and the link. I think I'm going to call on JALA (Jacksonville Area Legal Aid) next week. I personally think cashing the check should be ok as NMCO doesn't have any right to the money, but I agree that I should hear that from an attorney, not my uneducated conscience.

Again, thanks to all who post such good advice. I'll be sure to finish off this post with the results, when they come through.

[Anonymous]

WOW thats some CRAZEY stuff

I agree NO NOT CASH THE CHECK!

[haulingthescoreup]

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@FAKO_Junkie wrote:
Timothy,

Thanks for the advice and the link. I think I'm going to call on JALA (Jacksonville Area Legal Aid) next week. I personally think cashing the check should be ok as NMCO doesn't have any right to the money, but I agree that I should hear that from an attorney, not my uneducated conscience.

Again, thanks to all who post such good advice. I'll be sure to finish off this post with the results, when they come through.

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I would worry that endorsing and depositing the check would obligate you to something, the way that PFD'ers try to do with their payment checks. I'm suspicious about a CA volunteering to do something nice for you.

[Ausfarm]

Don't cash the check before talking to an attorney.  This situation brings to mind accord and satisfaction situations.  When you send a check to settle a debt using that law, if the creditor cashes the check, they have 90 days to send the check back (at least in my state). Anyway, it's interesting by analogy.  One would expect if they were going to reneg they should do so w/in a reasonable period of time, not 2 years after the fact.  Having said that, I seriously doubt there's any law or other authority that would allow them unilaterally to return the check and reneg the deal? 

Anyway, its seems that a deal is a deal.  I imagine that the OC will have a breach of contract cause of action against NMRC for settling w/o their permission.   They'd probably go after the $ they could have got from you had it not been for NMRC's acting w/o proper authority.  If you cash that check, you potentially jeopardize that. 

Message Edited by Ausfarm on 11-09-2007 09:26 PM

Message Edited by Ausfarm on 11-09-2007 09:29 PM

[My_dog_FICO]

Update:

The check has not been cashed. I'm still afraid of what legal breach of contract that may create and screw me later.

Bad news: The current CA sent me a Validation of Debt letter today. Not the one that returned my check. I immediately typed up and mailed a VD requesting DOLA. I did not acknowledge the debt and did not sign the letter. I sent it out from the PO today CMRRR.

My question - that I haven't been able to find a clean answer for is:

If they return a Validation of Debt and it has a DOLA that is past my states SOL, what do I do next? How do I tell them to take a flying leap and not end up with them trying to sue? I know if I go to court I would probably win because of SOL, but I'd rather not get to that step. This is a rather large debt so I do think they will push as hard as they legally can (or more).

Thanks for all the help. I love you guys.

G

Message Edited by FAKO_Junkie on 11-10-2007 02:24 PM

[Anonymous]

questions?

Why no signature on a DV/VD leter?

[Ausfarm]

Why are you afraid of a breach of contract?  You made a deal w/ the original CA, who had authority to make a deal w/ you on behalf of the OC, and you fulfilled your end of the bargain.  That is to say, you paid the $750.   Seems to me that it's the original CA that made a deal w/ you that should be afraid of a breach of contract suit from the OC.  Since, the original CA settled with you potentially losing the OC alot of money. 

Again, this situation is so unusual, it would be worth talking to a consumer/debt collection attorney.  Usually a first consultation is free and, depending on what you case you may have, the attorney might be willing to take the case w/o any $ from you (for example the law might requirement the payment of attorneys fees if you're successful).  And your case has some pretty compelling facts.  I can't remember, did you sign an agreement with the original CA or do you have anything from the original CA that contains the essence of the agreement that you made to settle the debt for $750?

If the SOL has run, I would send a cease and desist letter.  Of course, if the CA/OC is serious about suing they will most likely file suit against you if you send a C&D letter.  Personally, I wouldn't care if I knew the SOL had run.  I would have my attorney file a motion to dismiss b/c the SOL had run.  sYou have to remember, all the CA is trying to do when they sue your is to get you to pay something.  Most people get so scared when they're served they settle.  Some people have settled and paid on debts that didn't even belong to them. 

[haulingthescoreup]

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@Anonymous wrote:

questions?

Why no signature on a DV/VD leter?

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No signature on any correspondence with a collection agency, lest they scan your signature, create a nice new contract, and print your sig on it.