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Legal Implications of Letter and Check???

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Established Member

Re: Legal Implications of Letter and Check???

The first time I ever heard of the restrictive endorsement idea I doubted it as well so I called a lawyer to ask if it could be used as an effective tool in credit repair and the answer I got back was absolutely. I was told that copies of a cancelled check would hold up in court. You just have to make sure the check is recieved by an actual human. The creditor however has the right to not accept the check.
Message 11 of 13
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Moderator Emeritus

Re: Legal Implications of Letter and Check???

This could vary by state -

bxthoroughbred wrote:
The first time I ever heard of the restrictive endorsement idea I doubted it as well so I called a lawyer to ask if it could be used as an effective tool in credit repair and the answer I got back was absolutely. I was told that copies of a cancelled check would hold up in court. You just have to make sure the check is recieved by an actual human. The creditor however has the right to not accept the check.



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Message 12 of 13
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Senior Contributor

Re: Legal Implications of Letter and Check???

Absolutely right, SideWinder (like you needed my agreement! LOL!) ... in fact, most states do NOT recognize restrictive endorsements (I believe that the number of states that allow REs to be legally binding is limited to 10 at the most).

The majority of the ones that DO require that BOTH sides agree to the conditions and requires that a separate agreement be in place. Meaning, the RE does NOT override a pre-existing agreement and must be actually in accordance with one.

There's a lot of BAD info on the web about this. Many of the states that are touted as being an RE friendly state are actually NOT. You MUST read the statutes of the state in question to be sure.

And even then, let's say that you're in a RE friendly state and your creditor is NOT. If the creditor sues you for the debt in THEIR state, your RE, unless you domesticate the case, holds NO legal water. IOW, you're *blanked*.

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Message 13 of 13
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