There are 3 things you need to do when settling your debts: Make sure you remove the account completely from your credit report, make sure the person who signed the agreement is authorized to do so, and put in a liquidated damages provision. A liquidated damages provision is a clause in your contract (that’s what this is) that says if the collection agency violates the agreement, they have agreed, in advance to pay you the amount in the provision.
This agreement for settlement of $xxx.xx known as the Debt is betweenknown as Collection Agency andknown as Payor. Payeecertifies that they are acting as a representative of Collection Agency, and has authority to make decisions regarding this Debt.
Upon payment ofthe Debt to Collection Agency, Collection Agency agrees that the Debt has been paid in full and agrees to remove any negative mark on the Payor’s credit report, and also agrees to not put any negative marks on the Payor’s credit report at any time in the future.
Once the Collection Agency has received the payment from the Payor, the collection agency agrees to remove the account listing completely from the Payor’s credit report. It is not currently known what the dollar amount might be if Collection Agency refuses to remove its account listing on Payor’s credit report or places one on it in the future, but Payor estimates the liquidated damages of such a negative mark to be $10,000. If at anytime in the future, the Payor finds a negative listing from Collection Agency, the Collection Agency agrees to pay the liquidated damages.
If these terms are acceptable to your company, please sign below and return a copy to me. Upon receipt of this acknowledged agreement, I will express you a money order in the amount stated above.
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