Plaza Associates Aggreed to Settlement, then after they received first payment, they stated they hadn't and that I owe full amount NewYork New York

Contacted by Plaza Associates about an old Advanta account. After explaining what had caused default, gentleman was very nice and said he understood. Even praised me for doing the right thing and taking care of my obligations.

The balance on the old account has now risen to over $23,000.00 because they have been adding over $600.00 per month in over the limit fees and finance charges. (That is why I had to stop paying them to begin with). I was on a "hardship" plan and was paying them over $600.00 per month, and they were tacking on over $700.00 worth of fees and interest each month!!.

Anyway, we agreed on an amount of $9,500.00 to settle the account. He asked for a payment of $500.00 and in Good Faith, I provided ALL contact information and banking information.

I told him at that time, that I could make the first $500 payment, but did not know if I could pay that amount every month. He said, that we could re-visit the account at any time and change the payment to what I was comfortable with. He said the payments would come off of the $9,500.00.

I stated that I needed something in writing and he said that after my payment cleared, the company would send something to me. I kept my word and made the payment.

When I received the statement from Plaza, it gave me credit for the $500, but showed the balance due as the whole @23,000.00 and made no mention of a settlement agreement. I called and had difficulty reaching the agent that had helped me, but everyone kept saying there was no way I could have settled by making monthly payments.

I finally talked to a "Supervisor" and I explained that we had not agreed on my paying the whole amount, but had settled on the $9,500.00. He said he would send me the letter I wanted.

I received the letter, but all it says is that they received my payment and that "it is my understanding you are not in a position to settle this matter for $9,500.00 in a lump sum settlement as previously discussed with Mr, *** ." Mr *** and I NEVER discussed a lump sum payment of $9,500.00.

When I finally talked to Mr. Bailey again, and I brought up the settlement agreement we had made, he said that we had never made that agreement. After I kept insisting that we had, he started raising his voice and said that I had agreed to the terms he was stating(lump sum of $9,500.00 or payments to pay the whole $23,000.00. I told him that those terms were NOT what we had agreed on and he got sarcastic and VERY irritated and finally left the phone and let someone else take the call.

The next person started saying that if the case were as I was stating, someone would have to be fired, and on and on. He said I should continue with payments and that I could try to settle later.

I sent a certified letter stating that since they were not keeping their end of the agreement, I would consider it null and void, and would not make any further payments until I could afford them.

I received the next monthly statement now stating that I defaulted on the agreement to pay $500.00 per month on the account($23,000.00) and that if I pay, I can "avoid the possibility of this office undertaking additional activity..."

Since the agreement was made over the phone, it will be my word against theirs. Any suggestions on how I should proceed? I can't believe a company like Advanta allows someone like this to represent them.

When you call the 800 number Advanta gives you, they answer "Customer Service", but they will not tell you what company it is. I asked, "is this customer service for Advanta or a third party collection firm?", and all she would say was :"this is Customer Service". Afterwards I noticed the phone # I was given was just a digit or two different from Plaza's, so now I know it was the same office.

Plaza victim
other
U.S.A.

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