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Payment + Check = Deletion?!


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I've had some success w/ something simple

I have stamped the back of some of my clients checks that are being paid to collection companies w/ the following wording.

"Restrictive Endorsement: Deposit Constitues A Binding Agreement:

Paid in Full/Paid As Agreed

Account #________________________"

It's been working on accounts w/ smaller balances.

Any thoughts or comments?

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Yes, it's worked a dozen times or so thus far. I realize that it probably carries NO legal weight, but it's all about perception.......isn't it.......

They don't know if you're sitting in a corner office w/ a high back leather chair, smoking $60 cigars.........or if you just took a break from riding your tractor to make a call.

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This seems like a viable tool if you play your cards right. From what I have read about this, you should send a letter to the CA or OC FIRST asking for certain terms.... Such as paying half will settle the debt and have it removed from your credit all together. Then you may use the Restricted Endorsement method. But you must use a bit more lengthy statement such as:

"By accepting these funds, you hereby agree that this account is paid in full without protest and that you will remove this account with each credit bureau that you submit to. Your cashing of this check constitutes you have agreed to my offer. No collection activity may be attempted any further and my credit reports will reflect this change."

The reason for this is the fact that even though you have the terms written on the check, the CA or OC may simply write "Cashed Under Protest" and that will negate all the work that you've done and you may be SOL at this point.

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  • 2 weeks later...

Well, now something makes a lot more sense to me after reading this post.

The agent at the CA that I have been dealing with regarding a debt that I want to do a pay for delete, emailed me and told me to write on the money order "account #, balance: $0, REMOVE"

(this was of course after I received the confirmation letter that they agreed to do this for me).

So in a sense, I believe that is what he is suggesting ... that I use a restrictive endorsement.

For those wondering, the CA and OC are in California.

April

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