I have heard that people write a settlement offer on the back of their payment instrument (check, money order, etc) that dictates that, by accepting the payment, the creditor will delete all of the negative entries on a credit file. I have seen posts on several sites that said that the creditor could just strike through the 'settlement offer' and write 'under duress' and just cash it. However, on our local news, they do a 'consumer's legal help' session and the attorney that was on it said that if a consumer writes 'payment in full' or ANY other wording, and the creditor deposits it, there have been several federal rulings that say the consumer wins (even if the creditor crosses through the offer). Apparently, the federal courts have ruled that, if the creditor objects to the offer, the creditor is obligated to return the check and NOT deposit or cash it. If the check/money order is cashed - the payee is legally obligated by the payer's wording. Has anyone seen any of these rulings? I am searching for one. FYI - the attorney is Michel James Bryant and his website is www.thelegaledge.com -- he always has some very interesting information for consumers. I think he is in California (wish he was in South Carolina). He actually said that you could get a $500 bill and send them a $1 check that said "Payment in Full" and if the creditor deposits it - the debt is legally satisfied and the creditor cannot legally attempt to collect on the balance.
I don't think it's that easy. It also depends what state you are in. Remember, we are mostly dealing with collection agencies. They usually do not follow the law. Money is money as far as they are concerned. Most will not delete the listing from the credit report because it is against their contract with the CRAs. They cannot delete a paid collection, I've seen it written on UDFs. I am not a legal whiz but on most credit-related websites you can find out this information.
tmitchell is absolutely correct... I've had a couple deleted aswell, and used letters i got from here.....
This is called Accord and Satisfaction. Here in NC our laws follow that of the U.C.C. Therefore, if a creditor endorses and deposits the check with conditional endorsement, they are legally obligated to perform whatever the endorsement is. I have letters and endorsements for California and other states. It is quite simple to do, apparently. I sent off my first two today. One bill for $68 and the other for $73. I used priority with signature confirmation, so and I marked the envelope Attn: Payment Department. So, we shall see what happens.
I tried to propose a deal such as this to the two collection accounts that were on my credit reports. No dice. After I had paid them off, however, they came off within one or two rounds of disputing.
Well I did a little research (and a little genius thinking). I called a company that I had paid off - a $52 collection. I sent the money several weeks ago (before I found this site). Today I called them (Marlin Integrated) and told them that along with my payment, I sent a letter that stated I did not agree that the debt was mine and I just wanted to clear the matter up by paying it. In return for payment, they would agree to remove all entries from my credit reports. I told them that, according to the SC law, any letter accompanying a payment that contains any condition of payment is a binding contract if they accept the payment. (Weee - aint it fun to invent stuff on the phone?) The condition of my payment was that they would remove their entries - after being transferred to 5 different people and explaining this to them, I spoke with a supervisor who said that they had 'forgotten to send the notice to Equifax but that it was ready to go and would be submitted within 48 hours'. He said they would like to 'avoid any further complications with this matter' and thanked me for my payment and apologized for their 'error'. I asked him to email me a statement so that I would have it in writing - and he DID. Okay - it worked once. I must try this again LOL.
A creditor has no right to alter a check deposit it and collect on it. Altering a check should void it and it ought to be sent back to the payer.If a creditor can alter a check then I can alter the contract and force the creditor to perform on it.! What's the difference? If a payee objects to the terms of a check the only proper recourse is refusal of the check!!
