Am I covered?

[dktunnel]

I am about to send a settlement check to Capital 1s collection service to settle a credit card debt. I don't want them to be able to come after me for the rest of the debt in the future. I am settling for 40%. The letter they sent says:

"The purpose of this letter is to advise you that OSI Collection Services, Inc., on behalf of our client Capital One account #XXXXXXX will accept $XXX.XX on the above referenced account. The settlement amount must be received at OSI no later than 6-29-2005."

It is signed by a collections supervisor. I am sending them a cashiers check. I need to know what to write on the check to show the account as payed off so they can't come after me in the future. Something like "Account payed off." I am not asking how it will look on my credit report, just how to keep them (or an other collection agency) from being able to come after me in the future. I know some states have a law that if the check is cashed with a notation on it it can't be disputed. I am in Pa which has such a law, but I am sending the check to FL. I need to mail the check tomorrow so please answer ASAP! thank you!!

[willingtocope]

Of course, I can't put my finger on it right now, but I do remember a post from someone else who "settled" with OSI on behalf of their client. Turned out that the client didn't authorize the settlement, and continued to report the balance AND turned the rest of it over to another CA.

I think what you need is something in writing from the OC before you send the check. I can't stress enough that you cannot trust anything a CA says to you on the phone AND if they do send you something in writing, it only applies to them and not the OC....again, don't trust them.

On the other hand, if this debt has been "charged off / sold to another lender" and OSI is settling as a junk debt buyer, I'd suggest you modify their letter to say "...settled in full, and the balance will not be sold to a JDB..." and send it back to them (FAX?) for a signature BEFORE you send the money.