topic Re: Question regarding PFD letter with Check enclosed in Rebuilding Your Credit

Question regarding PFD letter with Check enclosed

Anonymous — Fri, 03 Oct 2014 15:49:16 GMT

Good morning everyone! Just purchased myfico 3 scores and reviewed some of the collection reports on file. I am getting familiar with goodwill or PFD letters and wanted to know if I included a check with the balance and maybe some verbiage like "if you accept this check and process you agree to remove account from all three bureus within 10 days". - Or something similar

Perhaps they will just laugh but was wondering if that was an option to avoid the going back and forth of will you or wont you delete. Would my letter have any validity if they cash the check?

Re: Question regarding PFD letter with Check enclosed

Anonymous — Fri, 03 Oct 2014 15:53:38 GMT

Depends on the CA. Some of them are willing to do PFD's and many are not. The ones that won't will simply cash your check a put your letter in the circular file.

Re: Question regarding PFD letter with Check enclosed

Anonymous — Fri, 03 Oct 2014 16:11:05 GMT

If they cash the check I think actually binds them into a contract. If they don't delete it after they cashed the check I would contact the CB

Re: Question regarding PFD letter with Check enclosed

Anonymous — Fri, 03 Oct 2014 17:11:13 GMT

That's kind of what I was hoping would happen if they did in fact cashed it. Really thinking about doing this but wanted some feedback on this before i pulled the trigger.

Re: Question regarding PFD letter with Check enclosed

Anonymous — Fri, 03 Oct 2014 17:15:30 GMT

I believe if they cash it knowingly that they won't honor the pfd is fraud.

Re: Question regarding PFD letter with Check enclosed

Anonymous — Fri, 03 Oct 2014 17:26:08 GMT

A note with a check is not any form of a legally binding contract. You would need some type of correspondence from the CA stating PFD in order to argue that. You never know, they might do it but I wouldn't count on anything. If that was the case I would write a contract to Cap 1 to remove all lates on my next payment.

Re: Question regarding PFD letter with Check enclosed

Anonymous — Fri, 03 Oct 2014 17:30:53 GMT

You are correct - But we all know there are CA's out there that ignore the law.... With your letter in the shredder, some would certainly feel safe. If going that route I would suggest at the very least to annotate it on the check itself, rather than relying on a separate letter that could get conveniently lost.

Re: Question regarding PFD letter with Check enclosed

Anonymous — Fri, 03 Oct 2014 17:32:29 GMT

But you only authorizing them to cash the check with in return for pfd. If they cash the check otherwise it is fraud as it would be considered an unauthorized transaction.

Re: Question regarding PFD letter with Check enclosed

Anonymous — Fri, 03 Oct 2014 17:35:34 GMT

@Anonymous wrote:
A note with a check is not any form of a legally binding contract. You would need some type of correspondence from the CA stating PFD in order to argue that. You never know, they might do it but I wouldn't count on anything. If that was the case I would write a contract to Cap 1 to remove all lates on my next payment.

Its no less valid than any verbal contract/agreement made over the phone. Easier to enforce in fact, ASSUMING the letter is not lost/destroyed. But still a bad idea.

Re: Question regarding PFD letter with Check enclosed

Anonymous — Fri, 03 Oct 2014 17:35:53 GMT

I would put on the check something like payment for deletion. I think u might have better chances sending it to the original creditor then to the CA. Unless it was sold to Another Agency.

Re: Question regarding PFD letter with Check enclosed

Anonymous — Fri, 03 Oct 2014 17:44:21 GMT

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

Re: Question regarding PFD letter with Check enclosed

Anonymous — Fri, 03 Oct 2014 18:41:47 GMT

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.

Re: Question regarding PFD letter with Check enclosed

Anonymous — Sat, 04 Oct 2014 00:09:13 GMT

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.

Re: Question regarding PFD letter with Check enclosed

Creditwiser — Sun, 05 Oct 2014 14:43:34 GMT

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.

Re: Question regarding PFD letter with Check enclosed

Anonymous — Mon, 06 Oct 2014 16:13:49 GMT

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.

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

Re: Question regarding PFD letter with Check enclosed

Anonymous — Mon, 06 Oct 2014 17:34:31 GMT

Thanks for the find Primrose!