topic Re: Cashing Check Constitutes Payment in Full in Rebuilding Your Credit

Cashing Check Constitutes Payment in Full

Ned505 — Thu, 30 Oct 2008 17:46:12 GMT

A few months back, I sent a check and a letter on a OC account to the payment address. The letter stated that cashing the check constituted payment in full, and was very simple. The check notation reference "Month Day settlement". They did deposit the check. I have a certified copy from my bank.

I have not yet pulled my CR to see if they are reporting a zero balance. But I have not heard from them in either letter or telephone.

Does anyone have any comment or advice at to next steps?

Thanks

Message Edited by fred0521 on 10-30-2008 10:46 AM

Re: Cashing Check Constitutes Payment in Full

Anonymous — Mon, 27 Oct 2008 20:07:07 GMT

Did you make sure that a restrictive endorsement is legal (and/or binding) in your state AND the OC's?

Even if it isn't enforceable, I've heard of many a company refusing to accept R/Es.

Re: Cashing Check Constitutes Payment in Full

Ned505 — Sat, 13 Dec 2008 19:01:20 GMT

I do not have any reference on if the R/E (I think that means Restrictive Endorsement) is binding in the two states in question.

Since I have not heard from them (written or telephone) in over 60 days I am wondering if I should let some more time pass. Or what other's experiences have been.

Message Edited by Ned505 on 12-13-2008 01:01 PM

Re: Cashing Check Constitutes Payment in Full

Anonymous — Mon, 27 Oct 2008 20:28:11 GMT

Was this is a negotiated settlement or did you just send in a settlement payment with the RE?

I would pull reports and see what is reporting.

Re: Cashing Check Constitutes Payment in Full

Ned505 — Mon, 27 Oct 2008 20:52:45 GMT

It was not a negotiatied settlement. They were not expecting the check, and It had been delinquent for over a year.

I acted in the hope that them getting something is better than nothing.

Re: Cashing Check Constitutes Payment in Full

203bravo — Tue, 28 Oct 2008 16:30:39 GMT

It would be a good idea to check for strict state laws that legally bar a creditor colleting the deficit amount when they cash a check that is marked "payment in full." If by chance your state does not have a more restrictive law, then the creditor can endorse the check "under protest" and preserve their legal right to continue seeking the deficit.

Re: Cashing Check Constitutes Payment in Full

Ned505 — Thu, 30 Oct 2008 17:53:00 GMT

I forgot to include the fact in my original post the the account went to a CA in after the OC charged off the account after 6-mon. from DOLA. and I DVd them (the CA) in April. I got no response. Then that is when I sent offer of settlement and the check to the OC.

Message Edited by fred0521 on 10-30-2008 10:53 AM

Re: Cashing Check Constitutes Payment in Full

Anonymous — Tue, 28 Oct 2008 18:23:54 GMT

@fred0521 wrote:
I forgot to include the fact in my original post the the account with to a CA in Toledo, OH and I DVd them in April. I got no response. Then that is when I sent offer of settlement and the check to the OC.

Are you able to see the face and/or reverse of the cancelled check?

In OH, the recipient can simply write "under protest" (or something to that effect) on the face or reverse and completely nullify the R/E's terms (also known as "Accord and Satisfaction"). Or they can simply cross out the verbiage on the check itself.

Ohio is not a R/E friendly state. What state are YOU in?

States that recognize and enforce R/Es are: Arkansas, Colorado, Connecticut, Georgia, Kansas, Louisiana, Maine, Michigan, Nebraska, New Jersey, North Carolina, Oregon, Pennsylvania, Texas, Utah, Vermont, Virginia, Washington, and Wyoming

Re: Cashing Check Constitutes Payment in Full

Ned505 — Thu, 30 Oct 2008 17:49:16 GMT

I am in one of those States you mentioned. And I have a copy of the check from my bank. There is no writing or stamping on the check other than someone wrote the account number on my check.

Message Edited by fred0521 on 10-30-2008 10:49 AM

Re: Cashing Check Constitutes Payment in Full

Anonymous — Tue, 28 Oct 2008 19:08:01 GMT

@fred0521 wrote:
I am in Nebraska. And I have a copy of the check from my bank. There is no writing or stamping on the check other than someone wrote the account number on my check.

Then they might fight you, but you ***should*** have a permissible defense if brought to suit. You'd still have to show up (of course) and you might have a fight on your hands, but you can always plead your state's law. That would probably require domesticating the suit (making the CA come to YOUR courts to settle the suit).

Unless the CA's a total looney, the threat that you will pursue settlement of the case (if they decide to bring it to suit) in your jurisdiction should suffice.

Not to get TOO personal, but how much of a difference are we talking about, here? I think THAT more than anything will decide what lengths the CA would go to for any balance remaining.

Re: Cashing Check Constitutes Payment in Full

Anonymous — Tue, 28 Oct 2008 19:09:31 GMT

Forgot to say: If the amount remaining is large enough (say, $1K or more), hold on to that freaking check like it's worth a gajillion dollars!!!!!

I figure you will, but it was worth mentioning!!!

Re: Cashing Check Constitutes Payment in Full

llecs — Tue, 28 Oct 2008 20:53:33 GMT

Wonderin wrote:
States that recognize and enforce R/Es are: Virginia

Actually the Code of Virginia will recognize REs, but it is not enforceable in most situations. For example, if I write "For Deposit Only", it cannot be cashed, but it can be transferred to a 3rd party. Or if I write, "Payable only to XYZ CA, upon endorsing this check, you must delete all references from my CR" or something to the effect, then by law, XYZ can transfer the check to a 3rd party and they don't have to delete. It is allowed, but not enforceable.

Re: Cashing Check Constitutes Payment in Full

Anonymous — Wed, 29 Oct 2008 21:42:38 GMT

I'm not sure about your particular situation, but most creditors have boilerplate language in their credit agreements that the creditor can accept a payment marked as payment in full without any detriment to themselves. Additionally the credit agreement generally requires that in the event of litigation you agree to sumbit to the jurisdiction of the courts where the lender is located.