Question regarding PFD letter with Check enclosed

[Anonymous]

I would advise against this, as it is your word against theirs as to what was in the letter. Just because you said the check was for a PFD does not mean they have to treat it as such. They could cash the check and apply it to your balance, then turn around and report a partial payment, and still report the balance aging the debt. Now if you put something in the memo stating the check was for PFD, and it was cashed, you would have proof from your bank showing that the stated intention was for that action. At least then you would have a leg to stand on, but if it were me, I would just wait for something back official, and pay then.

Camel

[Anonymous]

Thanks to everyone who did chime in, I really do appreciate the feedback. I'm going to have to think about this, I do like the suggestion of adding something to the Memo.

[Anonymous]

I'm willing to give it a try with PAY FOR DELETION memo on the check. I have just sent out my first round of PFD letters. Depending on what I hear back I will give this a try on my next round.

[Creditwiser]

The goal is always to get them to send you a PFD letter first. If you went thru with sending a note with a check, I would call first and see if they at least will verbally entertain the idea. 

I just dealt with Midland Credit in a simialr fashion. They gave a verbal PFD over the phone and I paid. The said they would send a letter to support that. The next day I receive a notification of account change. Midland marked the account as PIF but its still on my report as a PAID collection. This was in mid Sept.  On Oct 3rd the collection was deleted from my report. I never did receive the letter from them.

I think this all hinges on who you're dealing with but I would definitely feel them out on the phone before making a decision.  Good luck.

[Anonymous]

I've done some digging and I found some info.

Section 3-311 of the Uniform Commercial Code does state that a debt can be discharged with a check designated as payment in full "if the person against whom the claim is asserted proves that the instrument or an accompanying written communication contained a conspicuous statement to the effect that the instrument was tendered as full satisfaction of the claim." However, it's up to the claimant to prove "that within a reasonable time before collection of the instrument was initiated, the claimant, or an agent of the claimant having direct responsibility with respect to the disputed obligation, knew that the instrument was tendered in full satisfaction of the claim." So if you receive a check marked "paid in full" made out for less than the amount you have agreed upon, you'd best not cross out the words "paid in full" or write "disputed" on it and cash it anyway, as you risk having the entire debt discharged. However, this condition does not apply to "transactions conducted or performed, in whole or in part, by electronic means or electronic records, in which the acts or records of one or both parties are not reviewed by an individual in the ordinary course [of business]," which means that this scheme will not work at all for most bill or credit card payments, as those payments are typically handled by automated systems and not humans. 

Read more at http://www.snopes.com/business/bank/paidfull.asp#QM7boTtETSdqVDrK.99"

And then go here http://educationcenter2000.com/debt_collectors/restrictive_endorsments.htm and scroll down to Restrictive Endorsements.

[Anonymous]

Thanks for the find Primrose!