Is This Legal?

Did you make a deal for a settlement? If that's what you did and then you missed payment(s), generally the settlement offer is revoked and they want full payment because you didn't honor your promise to pay. Payments you've already made should be applied.

midland?i'm guessing you got nothing in writing on this.why?because as ohiogal1 stated if you had an agreement in writing then any payments should get deducted from the total owed.midland is a JDB that should have been forced to validate the debt first.never just pay,or make arrangements to pay a voice on the phone.

btw i saw where you got the letter,but again guessing you got nothing in writing pertaining to the arrangement.if you did then they wouldn't be pulling this as if they weren't a JDB then you could contact the OC and report them.

[COLOR=black]So are you saying that I can apply what I've paid to what they are saying I owe? That would be doable. Wouldn't feel like they are taking advantage of my situation. BTW how do I do that send a letter? And thanks for all the replies.[/COLOR]

You'll need to show proof of your previous payments in order to deduct it from the balance due. Do you have canceled checks or statements you can show? I would simply draft a letter asking to set up payment arrangements and continue paying as you did previously. Include your first payment with the letter. Make sure that what you offer is something you can afford to pay monthly. Once you establish an agreement, you can't miss payments. That will get you right back into this mess again.