Should a Payment Accompany a PFD???

[Anonymous]

I'm getting ready to send a PFD letter to a Collection Agency and was wondering if I should send payment with the letter using the cashier's check and restrictive endorsement or is the proper way to PFD to wait to get a response from them first and then send payment. Just thinking it may speed up the process if payment accompanies letter...but don't want to go through the hassle of having to dispute afterward if they don't honor the letter and the restriction on the back of the cashier's check. Any advice?

Message Edited by reddkaandy on 10-18-2008 12:59 PM

[My2cents]

Get the response first, because if you send the money you lose the leverage of paying for the deletion

My2cents

[Anonymous]

No send the PFD letter and give them a time limit to respond .... I think the standard is 15 days but you should research that ( do a search for PFD and you will find the answer )

Once they agree... in writing  THEN you send the payment AND use restrictive endorsement for the check.

I would still wait for an expert to chime in before taking action... they would probably be able to give you step by step instructions without telling you to research it.

Good luck!

[llecs]

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@Anonymous wrote:

Once they agree... in writing  THEN you send the payment AND use restrictive endorsement for the check.

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Keep in mind that not all states allow this.

[Anonymous]

Not all states allow PFD or not all states allow restrictive endorsement?

[llecs]

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@Anonymous wrote:
Not all states allow PFD or not all states allow restrictive endorsement?

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Restrictive endorsements.

And some states don't allow typing when tired, but that never stops me.

[treski]

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@llecs wrote:

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@Anonymous wrote:
Not all states allow PFD or not all states allow restrictive endorsement?

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Restrictive endorsements.

And some states don't allow typing when tired, but that never stops me.

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States oughta outlaw typing under the influence, IMO.  Of course, I wouldn't stop, either.

[Anonymous]

What do you mean by the states don't allow restrictive endorsements? The check can't be cashed by the CA??? Or do you mean some states don't recognize it/honor it such that if I took it to court it wouldn't be a anything that bound the CA to the terms because its not recognized? I'm a bit confused by the "not allow" part.

Well, it almost doesn't matter because I'm going to send the PFD letter alone at this point. After hearing about the "some states do not allow," I'd better get something from them in writing...I bet that's allowed/binding!

Thanks you guys...I appreciate the advice.

[llecs]

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@Anonymous wrote:

What do you mean by the states don't allow restrictive endorsements? The check can't be cashed by the CA??? Or do you mean some states don't recognize it/honor it such that if I took it to court it wouldn't be a anything that bound the CA to the terms because its not recognized? I'm a bit confused by the "not allow" part.

Well, it almost doesn't matter because I'm going to send the PFD letter alone at this point. After hearing about the "some states do not allow," I'd better get something from them in writing...I bet that's allowed/binding!

Thanks you guys...I appreciate the advice.

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Sorry if wasn't clear. PFD, by all means!!! And if they respond in writing, the send off a check.

Restrictive endorsements are not always allowed. Each state creates their own laws on that. For example, here in VA, if you send an OC a check with a restrictive endorsement that says "Upon endorsement, OC NAME agree not to transfer check and to delete any reference from the CRAs" or simply, "Payable only to OC NAME", then if they pass it to a CA or don't delete as in the prior example, it is NOT legally binding in court. VA will allow restrictive endorsements, but you can't sue if they don't follow the instructions on the check.

[Anonymous]

Ok, That's exactly what I thought. That's why I stated that it must mean "some states don't recognize it/honor it such that if I took it to court it wouldn't be anything that bound the CA to the terms."

All the more reason why I'm just gonna send the PFD, wait for a response, and then send payment...I'm probably still going to include a restrictive endorsement to reiterate whatever they've already agreed to at that point...but their legal responsibility will be heavily weighted on their response letter coupled with my original letter stating the terms instead of the check.

Thanks for clarifying and for responding!