Ok, I'm going to give you the whole story. I have a debt from a Jewelry company in Illinois from 2004. I haven't made a payment on the account since sometime in 2004 as well. I received a call today from an attorney's office in California, attempting to settle the debt with a one or two time payment. They said if I do not, they have already filed an order to subpoena me through the Sheriff's office. I agreed to settle the debt through two post dated checks, which I supplied the corresponding check numbers and account/routing number. I thought about it for a while, and I'm not sure if this is the route I should go. I called back, and told them that I would like to speak to my attorney first, and possibly would like to settle this in court. They asked me why, and said if I'm asking to revoke the checks, that I couldn't do that. Then he starts getting all offensive, saying that if those checks don't clear for any reason he'll have me in check writing school for the next four Saturdays and this and that, and he would make me pay triple the amount for each check and no bank would deal with me again. So my question is, what should I do? It's going to be a struggle to get the money by the date the check posts, and I don't know if I should settle this in court or not? The agreement amount is 1000 dollars, but they stated with the original principle amount, plus interest, plus attorney and legal fees, it will be about 3600. Also, what can they do to me? I'm just in a position right now where I feel I was taken advantage of. Thanks

Hello j:

There is NO settling in court. There's only winners and losers. If they're suing you for MORE than you settled on, and you have NO defense, they're going to win for everything they sued you for.

Plus, I'm not sure if what the attorney told you on the phone isn't right.

excon

So basically there's nothing I can do, just buck up and get the money together?

If it makes any difference, I told them that I will need a copy of the original contract faxed to my office, and they said they cannot produce one, but the documents will be subpoena'd upon the case going to court.

Tell them you need documentation that they are legally empowerd to collect the debt. And, that when the second check clears you will expect a letter from that stating that the debt was settled and nothing more is owed.

You should have held out to make sure they are empowered to collect. However since you have sent the checks, you are better off paying.