What can I do if a collection agency won't honor a settlement agreement?

Q. I had a retail credit card that I stopped paying after I lost my job. The card eventually got sent to collections, and I later worked out a settlement to pay $400/month for three months. I paid the $400 for the first two months, but couldn't pay the full amount the third month. I called the collector and told him that I couldn't make the full payment that month. He agreed to accept $200 that month, and $200 the following month.

I sent them the $200 for that month, and then they sent me a bill for $1000. When I called to inquire about why my bill was now $1000, they told me that the collector who I made the agreement with no longer worked there and that they were not going to honor the agreement.

What recourse do I have now?

A. I regret to inform you that you're probably stuck now with a $1000 bill since you didn't get the settlement in writing. This happens all the time with collection agencies. That's why I always say get EVERYTHING in writing. A written agreement is enforceable by law, but not an oral agreement. And collectors know that. Even when you make an agreement with a collector over the phone, you should get them to send that agreement in writing before you make your first payment.