Just something I found while doing some research

[Anonymous]

I came across this interesting article...Thought it'd be informative!

I negotiated a settlement with a creditor for less than I owed. The creditor is now suing me for the balance. Is this legal?

Yes! You need to read the following information carefully.

Some collection agencies will agree to settle with you for far less than you owe and then turn around and hire another collection agency to collect the difference. However, in many states this is illegal. Once a creditor deposits or cashes a full payment check, even if she strikes out the words payment in full or writes "I don't agree" on the check, she can't come after you for the balance. The states in which this law is enforced:

• Arkansas
• Colorado
• Connecticut
• Georgia
• Kansas
• Louisiana
• Maine
• Michigan
• Nebraska
• New Jersey
• North Carolina
• Oregon
• Pennsylvania
• Texas
• Utah
• Vermont
• Virginia
• Washington
• Wyoming

Some states have modified this rule. In the following states, if a creditor cashes a full payment check and explicitly retains his right to sue you by writing "under protest or without prejudice" with his endorsement, then he can come after you for the balance. But those exact words must be used. If he writes "without recourse," communicates with you separately, notifies you verbally or writes on the check that it is partial payment, it is not enough.

• Alabama
• Delaware
• Massachusetts
• Minnesota
• Missouri
• New Hampshire
• New York
• Ohio
• Rhode Island
• South Carolina
• South Dakota
• West Virginia
• Wisconsin

[TryingVeryHard]

Very informative. It could have been more useful with the source to back it up. Now, you gave me something to research. Thanks again.

[future]

good info, to share and KNOW... ty

[Junejer]

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@Anonymous wrote:

I came across this interesting article...Thought it'd be informative!

I negotiated a settlement with a creditor for less than I owed. The creditor is now suing me for the balance. Is this legal?

Yes! You need to read the following information carefully.

Some collection agencies will agree to settle with you for far less than you owe and then turn around and hire another collection agency to collect the difference. However, in many states this is illegal. Once a creditor deposits or cashes a full payment check, even if she strikes out the words payment in full or writes "I don't agree" on the check, she can't come after you for the balance. The states in which this law is enforced:

• Arkansas
• Colorado
• Connecticut
• Georgia
• Kansas
• Louisiana
• Maine
• Michigan
• Nebraska
• New Jersey
• North Carolina
• Oregon
• Pennsylvania
• Texas
• Utah
• Vermont
• Virginia
• Washington
• Wyoming

Some states have modified this rule. In the following states, if a creditor cashes a full payment check and explicitly retains his right to sue you by writing "under protest or without prejudice" with his endorsement, then he can come after you for the balance. But those exact words must be used. If he writes "without recourse," communicates with you separately, notifies you verbally or writes on the check that it is partial payment, it is not enough.

• Alabama
• Delaware
• Massachusetts
• Minnesota
• Missouri
• New Hampshire
• New York
• Ohio
• Rhode Island
• South Carolina
• South Dakota
• West Virginia
• Wisconsin

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Sounds like a good reason to get everything that you want to happen in writing.

[Anonymous]

Gotta be careful when posting links cause if there's advertising links within the other website promoting credit repair sites Barry might delete.  I did that once and had to go bury my head in the sand.

[TryingVeryHard]

I understand. I was actually hoping for state law citations.

I am not sure, but I believe this post may constitute plagiarism, because of the verbatim cut and paste. I can be wrong.

[Anonymous]

Simple copy/paste.  Can't live without it!

Plagiarism is the practice of claiming or implying original authorship of (or incorporating material from) someone else's written or creative work, in whole or in part, into one's own without adequate acknowledgement.  Copyright infringement is a violation of the rights of the copyright holder, when material is used without the copyright holder's consent.

[Anonymous]

Restrictive endorsements are an interesting topic-

Did you have one on the payment sent to this CA?

[Anonymous]

Well I do apologize if I wasnt supposed to do that....I guess next time I should double check!!...My apologies!!

Timothy: I am dealing with a CA right now and sent them a letter telling them I will be sending a restrictive endorsement on the amount we settled...Awaiting their reply

[Anonymous]

I have been afraid of this working on PFDs in the past.

I have modified my letter to include a statement saying that not only will this account be considered paid-in-full, but that the remainder of the balance is not to be sold to any third party debt collector.

Hope that covers me...