I am in the process of trying to settle with an OC for a lessor amount than is due. Is it better to send them a letter with a check, stating that if they cash the check it is an indication that they have agreed to that amount as the entire amount owed, or should I have them send me a letter first indicating that they are agreeing to settling for a lessor amount?
I agree with Greg. There is a legal term that I can't think of right now for sending a check with a condition attached... selective endorsement or something like that... someone here will correct me. In any case, I don't believe that sending such a check is legally enforcable in every state, so you might wind up with them cashing your check and not agreeing to any of your terms. I would definitely get something in writing and signed before you send them any money. HTH, Brett
you also want to make sure that you have had them validate the account before making any settlement offer. if they validate the account now, then you are assured that there are no illegal fees or charges that they are trying to slip by you because 'it looks right'. plus, it'll allow you to be able to make a more educated offer to resolve the account.
It's called Restrictive Endorsements. A quick link on states recognizing these as valid. http://www.carreonandassociates.com/4settle.htm If you settle before requesting validation, I would mention that you would like to settle the alleged debt for $XX in exchange for payment in full and deletion.
