It's responsible to pay debts that you owe.
Joe wants to buy a new home, but knows that he has an outstanding debt with a previous insurance company which would make the purchase difficult.
Joe wants to clear his outstanding debt so that his credit runs clean.
Joe pays off his debt to his previous insurance company.
Joe calls the insurance company and tells them that he already paid and will sue if they do not remove the debt, even though that’s not true.
Joe's credit is cleared, and he is eventually approved to purchase a new home.
After removing the debt based on Joe's word, the insurance company finds out he was lying, and sues him.