Is an Oral Agreement from a Bill Collector Binding in Court?

[Jlmjlm7]

I currently have a $2k rent debt from 2011 (Georgia) in collections with National Credit Systems. I spoke with them recently to arrange a "pay to delete" scenario, and the collecter I spoke to said he would do it but wouldn't be able to put the agreement in writing. He tried to justify this by saying that our conversation was recorded and that would be sufficient evidence of our agreement to remove the debt from my credit report after I paid it in full.

 

So my primary question is: Is an oral agreement to delete this debt from my collections report binding? I am extremely hesitant to trust a bill collector's word for anything.

[Second Chances]

The statute of frauds governs which contracts must be in writing to be enforceable. http://law.justia.com/codes/georgia/2010/title-13/chapter-5/article-2/13-5-30/. The situation you describe doesn't really fall within any of those categories. However, even if your situation fell into one of those categories, if you paid in reliance of that assertion, the court may find it enforceable anyways. http://law.justia.com/codes/georgia/2010/title-13/chapter-5/article-2/13-5-31/

 

All that being said, without a written agreement, it becomes an issue of "he said, she said." I don't what National Credit Systems' reputation is with regards to PFDs. At the very least, I would try to get a recording of the agreement.

 

Others may have different advice.

[cashnocredit]

Oral contracts are usually enforceable but there are some restrictions that vary state by state.

 

Your problem isn't enforceability but the notion that the collection company would provide you the recording with which you could prove the contract. Not going to happen.

[Second Chances]

Edit: The statute of limitations in GA for written agreements is 6 years, so you can still be sued for the debt, assuming there was a written lease. There is a benefit to not being sued, even if it remains on your report.

[pkrider7]

I agree with others, get that recording yourself with their consent and all their information if they don't want it in writing. It's the only way I would do it. You could always try sending them a letter for them to sign in agreement for the PFD.

[cashnocredit]

The statute of frauds governs which contracts must be in writing to be enforceable. http://law.justia.com/codes/georgia/2010/title-13/chapter-5/article-2/13-5-30/. The situation you describe doesn't really fall within any of those categories. However, even if your situation fell into one of those categories, if you paid in reliance of that assertion, the court may find it enforceable anyways. http://law.justia.com/codes/georgia/2010/title-13/chapter-5/article-2/13-5-31/

 

All that being said, without a written agreement, it becomes an issue of "he said, she said." I don't what National Credit Systems' reputation is with regards to PFDs. At the very least, I would try to get a recording of the agreement.

 

Others may have different advice.

 

Perhaps if you make are recording with the collector where you both acknowledge the recording and he agrees in return for full payment the account will be deleted you might have something. Even if not legally, my guess is that he's not authorized to make this offer so he may well delete it rather than risk the recording coming to the attention of his boss. That's likely to work and suing to enforce the contract could be slow and expensive.

 

The best way to approach PFDs is to always maintain you don't believe the debt is legitimate but you are willing to pay to settle the matter. This gets them off the hook since they aren't deleting a known legitimate account.

[Jlmjlm7]

Ok, so it sounds like as long as I make my own recording and maintain that the debt is not valid to give the CA reasonable legitimacy for deleting the debt once it is paid, then it may work.

 

Thanks for the help. I'll update once I get further in the process.

[cashnocredit]

Ok, so it sounds like as long as I make my own recording and maintain that the debt is not valid to give the CA reasonable legitimacy for deleting the debt once it is paid, then it may work.

 

Thanks for the help. I'll update once I get further in the process.

 

Good luck. It might not work but it does give the collector a rationale. If not or he objects to you recording the conversation a strongly written letter insisting the debt isn't yours but offering a PFD to settle might work with the boss man.