Legal Implications of Letter and Check???

[Anonymous]

I was wondering, after getting some offers like this in the mail by CC companies and others,  what would the legal implications, benefits something like this would have:

Sending a letter with a check attached to it, with wording along these lines: Collection Agency agrees to the follwing terms by cashing this check: it agrees to stop reporting acct #... to the CRAs and to consider this account PIF and fully satisfied, if collection agency does not agree with these terms do not cash check.

Chances are they will cash the check, how does that stand as dispute material, in a court of law, or as a way to get something deleted??? One would have to keep a copy of the letter with the check, just brainstorming...

[Tons_of_Debt]

I don't know about attaching a letter, but I know adding a note in the "memo" line or on the back has little to no legal standing.

[hoping2rebuild]

Also all they would have to say is that there was NO letter with the check

You would have no proof that you did include a letter.

IMHO I would PFD and wait to get something from them in writing

[irishchk23]

There was a discussion on this last week.  Check out this thread.

http://ficoforums.myfico.com/fico/board/message?board.id=rebuildingcredit&thread.id=21133&jump=true

I had read about this somewhere too, before reading this board, and a couple weeks ago tried it but under different circumstances.  I filed BK but since I'm trying to clean up my reports I offered PFD to Kohl's and BofA (I had a line of credit IIB) eventhough I'm not required to pay them (I had numerous lates reporting as well so double ding).  I see that BoA cashed the check at the end of last week and am waiting to see if it comes off my report.  Hopefully since these are two reputable companies they will delete but it was a chance I took.  I don't know about CA's though.  

Message Edited by irishchk23 on 08-11-2008 04:08 PM

[Anonymous]

Even if it is legally binding in your State, The CA would still have 90 days to back out of it.

[Anonymous]

Im am aware that Memo or endorsement lines have no or limited legal power, however, if you were to send a check taped to a letter stating in BIG letters the implications of cashing the check PIF, make and keep copies of what you are sending, and after they cash the check start a dispute with proof on hand, would that work at all???

I mean, if CCC can get away with signing you to a 200/yr program for cashing that $25 check (yeah we got one of those) couldnt we do something along those lines??? It would mean not having to wait for a PFD response, since they would have the money right then...

[Anonymous]

If you are in a hurry, why don't you just fax them a PFD? It's not a guarantee. But it's your best bet.

[Ceejay1978]

I dont know whether to add this to this thread or the other but I think that the restricted endorsement thing worked for me.  They made an offer to me and when i accepted and sent the check I sent a letter along with it and signed it restricted endorsement.  Neither the OC or the CA shows now.  I dont see any harm in it but if they dont take it off (even if you send the letter and cancelled check to the CRA)  the most they can do is leave it on.  Then you PFD...  or GW.  and then the most they can say is no.  Its a shot in the dark but I think it worked for me

[Anonymous]

I understand that there are other ways to go through with PFD, but I wanted to know, mainly, if this would be enforceable at all...

[hoping2rebuild]

 IMHO once they removed the check from the letter they could say

you sent them an updated contact info sheet, sheet music, anything

I think it would be hard to prove exactly what you did send them, again they could

argue that you typed up your letter later.

I would want something from them in writing