"Closed and Satisfied" vs. "Paid in Full"

[Anonymous]

First, I promise this will be my last question in regard to the settlement offer I recently received!  I would like to pay it, but I want to make sure they won't try to come after me for the rest of the money after I've settled.  In their letter, they state:

"Upon receipt and clearance of your payment, this account will be considered satisfied and closed, and a settlement letter will be issued."

Does this language generally mean a CA plans to consider the account paid in full and discontinue further collection?  I believe this company is collecting for a previous CA or has purchased the debt since my account number with them is the same as my account number with the previous CA, except the previous CA's initials are now the first letters in my account number with this new CA.  I would like to put all this behind me by settling the account, but I also don't want to create a worse situation when my payment resets SOL and this current CA or the previous CA come after me or sue me for the rest. 

If I pay the settlement, I will send them a money order via FedEx or USPS CMRR and then hold on to the letter they sent me offering the settlement, the proof of delivery, and the receipt for and possible trace of their cashing the money order.  I'm just hoping this will be enough to prove the account is settled.

[llecs]

"Satisfied" sounds definite to me. You're on the right track with the CMRRR and MO.

[Anonymous]

Thanks, llecs.  The settlement needs to be received "before 1/24/2013."  I read that "before" to mean they need to receive it by 1/23.  I plan to try sending it through the USPS on Tuesday using Express Mail with a Return Receipt.  If the USPS can't guarantee overnight delivery, would it be acceptable to send it using FedEx?  I'm not sure how FedEx's proof of delivery compares to a Return Receipt from the USPS, but I'm guessing FedEx could provide me with a signature and proof of delivery.

[RobertEG]

Satisfied means they consider the debt as legally $0, regardless of whether paid in full or for a lesser amount.  No more debt, no more collection.

The creditor and debt collector must then both update your file to show a $0 debt balance, and the debt collector must close their collection.

Satisfied does not mean paid in full.  If the debt is settled for less than its full amount, they are authorized to additionally report a special comment recording that fact in the consumer's credit file.  If reported, it advises others pulling your CR that, in the past, you did not fully pay all debt you incurrred.  That is a negative comment in any manual review

I suggest that, as part of your settlement offer, you obtain their statement that they will not report that additional special comment.

Without that comment, your CR will appear the same as if it had been paid in full.

[Anonymous]

Thanks, Robert.  Thankfully, the collection has fallen off my CR, but it's still within SOL in the state where I'll soon be moving, which is also the state where the debt was originally incurred.  I'm mostly just concerned about being sued, which is why I want to settle.  Your advice letting me know the debt would be considered satisfied once I pay the settlement and that all collections will stop are very helpful.

Do you have any thoughts on whether it's okay to send the settlement via FedEx if the USPS can't guarantee overnight delivery?  I want to make sure they receive it before the date indicated on the settlement offer to ensure that it's "closed and satisfied" and not simply considered a payment toward the debt.

[RobertEG]

It's a negotiation response, so the timeliness is the issue, not the form in which it is communicated to them.

Showing recepit by their stated deadline is certainly prudent.

If you meet all terms of their offer, then SOL will no longer be a concern provided it is clear that your payment satisfies all debt.