An individual sent me an email today asking whether they should still respond to a lawsuit filed by a collection agency.  The individual explained that they had reached an agreement with the collection agency on a payment plan.

My first response was to  tell the individual that they had made a huge mistake in agreeing to pay the collection agency anything.  Typically, as you will see from any of myother posts, a collection agency has a difficult time in proving a  case against you in a court of law in Pennsylvania. 

My second response was that if they are going to continue on with the proposed settlement, making their mistake even larger, then they should absolutely file a written response to the lawsuit.  An agreement with a collection agency is pretty meaningless unless you have it spelled out specifically inwriting.  I would never trust an oral agreement with a collection agency, ever.  If you fail to file your response to the lawsuit, the agency most likely will simply enter a default judgment against you for the full amount of the alleged debt, often with an inclusion of their attorney fees.  If you do “strike a deal” with a collection agency, (which again is a huge mistake) then at least get it in writing.