[raindad]

Recently I reached a settlement agreement on a debit I owe. I was contacted in Sept by a collection agency, Commercial Recovery Systems (CRS), who was representing Main Street Acquisitions Co. (MSA). CRS faxed me a copy of an agreement to settle for half of the original debt which is a total $7000.00. I had to agree to give them my bank account information for direct withdraw on the monthly due date in which I did. October was my first payment which was withdrew. November nothing was withdrawn. In early December I got an alert on my credit bureau of a hard inquiery by MSA then another alert of a failed to pay which dropped my credit score 25 points. CRS then withdrew a December payment on the due date.
In November my bank report showed the money was available and no request for withdraw was ever made by CRS. The money was in the bank then and actually still is now.
My questions are: Is it my responsibility to alert CRS when they fail to withdraw payment? Since it was there mistake can they report back to MSA and have the negative report removed from my credit or should I contact MSA directly since I feel there agent won't want to accept the mistake? DO I call CRS and make the November payment or use there mistake for negotiating a correction to my credit bureau? If this was a situation where I made the payment then I would understand that I know I owe the bill and I know its due the same time every month so late payments are not excusable as far as credit reporting but I feel since CRS insisted on direct withdraw every month then they get full responsibility for the missed payment.

[ScottGem]

Given the fact that if you miss a payment it can void any settlement agreement, I would be on the phone the moment the debit was missed. I would call both companies and follow-up it up with written communications.

Do they have a judgment against you? If they do, then it is possible they can clean your account out. I would also read the settlement agreement because it may give them permission to clean out your account.

[raindad]

There's nothing in the agreement to allow them to clean out my account but again they have my account numbers and everything I've read on the internet about both of them is they are shady. There's no judgement either. When they first contacted me they had been call and sending letters to my ex. The first time they got a hold of me I agreed to settle. Given there reputation I figured if anything was missed they would call right a way. The first payment in October didn't go through and they put me on a 3 way call with my bank and as it turns out it was CRS' mistake as they didn't enter the right account numbers. So what your saying is give CRS a call or MSA?

[raindad]

By taking a payment in December are they obligated in the assumption by doing so that they are still in a binding agreement?

[ScottGem]

The fact that there is no judgment works greatly in your favor because they need a judgment or something in the settlement agreement to clean out your account.

But I would call both and follow up with letters.