Third-Party Payment Agreement

A Third-Party Payment Agreement is a contract between a debtor and a third party, such as a family member, friend, or employer, in which the third party agrees to make payments on the debtor’s outstanding debt to a creditor or debt collector. The agreement typically includes details about the amount and timing of the payments, the method of payment, and any conditions or limitations on the arrangement. The agreement may also include provisions for the termination or modification of the arrangement, as well as any fees or charges associated with the service. The purpose of a Third-Party Payment Agreement is to provide a way for debtors who are unable to pay their debts directly to receive assistance from a willing and able third party, and to ensure that the payments are made in a timely and consistent manner. The agreement can also help the debtor avoid default or further collection action, and may be used in conjunction with other debt relief options, such as settlement or consolidation. The agreement should be carefully reviewed and understood by all parties, and may require the consent or approval of the creditor or collector.