1. Neither me nor the Collection Agency (and it's assigns) shall disclose any information in relation to the account, except for what has already in public knowledge.
They have business obligations with the OC, accounting obligations, and possible tax obligations that are, amongst others, internal business activities that would most likely mandate disclosure of their business activities related to your account. If summoned for information by a court, they would have no option but to provide ordered disclosure.
I know they have business obilgations with the OC. What I am targeting are the "umbrella" companies (like LVNV Funding) that own multiple other collection firms. They have been known to settle for less than owed with one sub-firm, only to take the remaining amount and farm it out to another one of their sub-firms to collect upon the remaining amount. The issue of the consumer dealing with the OC and the original tradeline is a completely separate issue from settlements with a JDB or CA.
2. The alleged debt is extinguished in it's entirety.
Most often, the debt collector does not even own the debt, but is merely a collection agent of the debt holder. There is no way a debt collector can fulfill an agreement to extinguish the debt in its entirety, or agree to additional debt that has accrued to another party. And they most certainly cant require the OC to delete any reporting related to the debt that the OC has made.
Again, this applies only to the JDB/CA at hand. When I mean "extinguished", I mean that the forgiven part of the debt is not sold or transferred in any way to any other party, including the OC. This clause prevents them from reselling the remaining debt.
3. No 1099's shall be issued (if the portion of the alleged debt cancelled is >$600)
I agree with prior comments.
This is actually a tricky issue...normally, OC's are required to issue the 1099's on uncollectable debts. However, there are JDBs/CAs out there that will do that just to reap the tax benefits that come with the issuance of a 1099. There are ways that consumers can counter this, but then again I am neither a tax professional nor a lawyer, so I can't advise on this stuff. Personally, I think the idea that a JDB/CA issuing a 1099 is both unethical and it stinks to high heaven; they can just go [redact] it.
4. Liquidated damages of $100,000.00 shall be paid by party who breaches this contract, accelerated, and due in full.
Damages agreed to as to fact and amount without the right to legal opposition?
If both parties sign the NDA, then both parties unequivocally assent to this clause. The NDA will cut both ways.
