Re: Bullet Proof -- Thanks Whychat!

Posted by Why Chat (12.77.181.83) on September 07, 2002 at 08:32:18:

In Reply to: Re: Bullet Proof -- Thanks Whychat! posted by lucy on September 07, 2002 at 00:18:40:

WHOA!! Lucy!!
You missed my point entirely!!
I said that the SOL LETTER could be held to prevent further collection activities of any kind, including resale. That is because it prohibits any FURTHER collection activities of ANY kind.

When you make a "settlement" whether it is with a CA or OC, you have an agreement that they will accept XX $$ as settlement for THEIR claim on the account. Many settlement agreements also go on to have an "agreement" relating to THEIR reporting to CRA's.

BUT, as far as I know, unless you have in your agreement with a CA or OC that they WILL issue a 1099C to you for the unpaid balance, there is NO legal contract that prohibits them selling the balance of the account.

You need to understand there is a LEGAL difference between a "settlement" and a non-payment on an account. You CAN legally prohibit collection activities of any kind, including reporting and reselling IF you HAVEN'T "settled".
But once you have, in effect, validated their "ownership" of the account, you cannot legally prohibit their resale.It is called restraint of trade.

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